CSBJ Daily

MINNEAPOLIS (AP) _ Fuel isn’t getting any cheaper, so Northwest Airlines Corp. is going to make flying a little more expensive.

Northwest has raised prices on international flights, plans to freeze new hiring of pilots and flight attendants, and will cut its domestic schedule by 5 percent beginning in September.

Northwest President and Chief Executive Doug Steenland said in a statement that in recent months, “the price of oil has risen dramatically to all-time highs and there is no reasonable basis to conclude that oil prices will materially decline anytime soon. These increased costs are significant and call for a strong response from us.”

Northwest said it wanted to move quickly to preserve its cash, which was $3 billion at the end of 2007.

Northwest emerged from Chapter 11 protection on May 31 and like most other carriers it earned money during 2007 – $746 million in Northwest’s case, not counting bankruptcy items.

But the price of jet fuel has risen sharply this year, and the slowing economy has led airlines to fear that demand is about to drop.

The airline said it would try to save $100 million a year through “cost reductions, productivity improvements and revenue enhancements.”