Northwest Air to Retire Aircraft
NEW YORK (Reuters) - Northwest Airlines Corp. (Nasdaq:NWAC), the No. 4 U.S. airline, said on Tuesday it would accelerate retirement of some Boeing aircraft, as the carrier grapples with the slump in business travel that has battered the airline industry.
The airline said it will remove from service 2 of its fleet of long range Boeing 747-400 aircraft. The cost-cutting measures will result in incremental improvements of $135 million for the year as it also reduces flights and closes facilities.
Northwest said it was also cutting capacity growth in the third quarter by 1 percent and in the fourth quarter by about 5 percent.
Northwest Airlines shares gained $1.30 to $26.10 on Nasdaq on the news.
"The A340-300 may boast a long range, but the A340 is underpowered" -- Robert Milton, CEO - Air Canada