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Northwest toughens minimum stay rules

Northwest Airlines Corp. said Friday it has increased the number of nights that travelers are required to stay at domestic destination in order to receive leisure fares, in an effort to boost revenue.
/ Source: The Associated Press

Northwest Airlines Corp. said Friday it has increased the number of nights that travelers are required to stay at domestic destination in order to receive leisure fares, in an effort to boost revenue.

Fares that once required a one- or two-night minimum stay now require a two- or three-night minimum stay.

"This is just one more move we are making to offset the extraordinarily high fuel costs," Tim Griffin, executive vice president of marketing and distribution, said in a statement.

Northwest said Thursday it would raise fees, fares and fuel surcharges to offset higher costs as well.

The airline industry has been hard-pressed to make fare hikes stick due to intense competition and sluggish demand. At the same time, oil prices have skyrocketed, hurting the industry's profits. Several carriers have increased fees outside ticket prices — for carrying extra bags, bringing pets along or for food and beverages — in an effort to boost incremental revenue.

Northwest plans to reduce domestic capacity by 5 percent this year to support higher demand. It is also planning to take 15 to 20 aircraft out of its fleet, reduce nonaircraft expenses by about $100 million and make other expense and productivity improvements in 2008.