US Carriers are moving to cut costs after warning of first-quarter losses caused by a downturn in the US economy.
Northwest Airlines plans to retire three McDonnell Douglas DC-10-40s ahead of schedule by the end of the year as part of cost-reduction initiatives totalling more than $200 million. But the airline says it will maintain its planned investment in new aircraft.
Other actions include reducing non-profitable flying and a 5% cut in the management payroll. Northwest expects to report a first quarter loss of $130-150 million.
After a similar decline in business travel, United Airlines will make $200 million in-flight service cuts.
America West Airlines is to retire two Boeing 737-200s and two -300s early, but will take delivery of 15 Airbus A319/A320s as planned.
Source: Flight International
