UPDATE 2-Northwest Airlines to cut capacity further

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NEW YORK, June 17 (Reuters) - Northwest Airlines Corp NWA.N on Tuesday said it would reduce the number of seats for sale in the fourth quarter and cut its work force as it struggles with sky-high fuel costs.

Northwest, which has agreed to be acquired by Delta Air Lines Inc (DAL.N), is the latest of the major U.S. carriers to announce cutbacks as they grapple with unprecedented oil prices that have doubled in the past year.

Northwest said it would cut mainline capacity in the fourth quarter by 8.5 percent to 9.5 percent. This includes reductions previously announced in April.

"In response to these extraordinary fuel costs, we are taking prudent actions to reduce our capacity and right-size the airline," Northwest Chief Executive Doug Steenland said in a statement. This will allow us to better match our capacity to customer demand as airfares, by necessity, must increase."

The airline said it has not yet finalized the impact of the cuts on employees and that it would look first to voluntary programs to reach the resulting head-count reductions.

TAKING ACTION

Northwest said it would remove 14 B757s and Airbus narrowbody aircraft from its fleet, while its DC-9 fleet would be reduced to 61 by the end of the year, down from 94 at the start of 2008.

Northwest said it continues to take action to improve revenue with added fuel surcharges, fare and fee increases but did not elaborate.