NWA Matches Competitors with Fees for 1st Checked Bag, Frequent Flier Award Tickets, and Ticket Changes

Northwest Airlines (NYSE: NWA) today announced it will reduce its frontline and management employees by 2,500 as a result of capacity reductions taken to address the unprecedented run-up in oil prices. In addition, NWA will match its competitors and charge fees for the first checked bag and for frequent flier award tickets, and increase the fees for ticket changes.

“Our fuel costs have more than doubled in the past year,” said Doug Steenland, President and CEO of Northwest Airlines. “In order to manage through this unprecedented fuel challenge, we have to take action to both control costs and increase our revenue.”

Personnel Reductions via Voluntary Programs

In June, Northwest announced plans to reduce its system mainline capacity (domestic and international) in the fourth quarter of 2008 by 8.5% - 9.5% versus the fourth quarter of 2007.

As a result of these flight reductions, Northwest will reduce its frontline and management personnel by 2,500. All NWA employee groups will be affected by this.

The reductions will be first achieved through a variety of voluntary programs including early-out programs, voluntary leaves, work rule modifications and attrition. Furloughs will be employed only if voluntary means fail to achieve the targeted reductions.

“These reductions are the direct result of our extraordinary fuel costs and the necessary actions we must take to right-size our airline and eliminate unprofitable flying,” said Steenland.

Northwest Airlines is one of the world’s largest airlines with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam. Northwest, with its regional partners, operates approximately 2,400 daily departures. Northwest is a member of SkyTeam, an airline alliance that offers customers one of the world’s most extensive global networks. Northwest and its travel partners serve more than 1,000 cities in excess of 160 countries on six continents.