NEW YORK (CNNMoney.com) - Northwest Airlines reached a tentative deal with its pilot union Friday that it said would save the bankrupt airline $358 million a year, according to a company statement.

The airline said the deal still need to be approved by the union's leaders and the union membership at large.

The deal averts a possible strike at the airline, which is trying to wrangle $1.4 billion in savings from it's employees. The airline said it needs to find a total of $2.5 billion in costs cuts to return to profitability.

Northwest (Research) reached a tentative deal with its flight attendants Wednesday. It also has a tentative agreement with its ground workers union.

Northwest said in its statement that, in addition to savings from labor cuts, it is saving money by resizing its aircraft fleet and overhauling its finances.

The company filed for bankruptcy in September, hit by soaring fuel costs and competition from low-cost carriers.

Northwest is the nation's fifth largest airline, based of miles traveled by paying customers.

The top four are, in descending order, American, Delta, United and Continental.

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For more on the talks leading up to the deal, click here