Northwest tries another fare increase

Northwest Airlines Corp. said on Wednesday that high fuel prices are prompting it to try another fare increase.

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Northwest said it added $50 each way to fares that had been capped at $499, and added $5 each way to fares that match discount carriers. It also said it was adding a two-night minimum stay in some markets. A hot line message to employees on Wednesday said the increases went into effect on Tuesday.

This is the second time Northwest has added $50 to fares that match the $499 cap Delta Air Lines introduced in January. The last one failed after other carriers didn’t go along.

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“While unsuccessful in the past, it is incumbent upon Northwest to vigorously pursue changes that will improve our revenue and partially offset the staggering effect of increasing oil prices,” said executive vice president for marketing and distribution Tim Griffin.

Rising oil prices have hammered airlines. Northwest chief executive Doug Steenland said on Monday that every $1 increase in the cost of a barrel of oil costs Northwest $50 million a year.