Northwest Airlines 3Q losses hit $1.2bn

11/01/06 - newratings.com

NEW YORK, November 1 (newratings.com) – Northwest Airlines (NWACQ) Tuesday announced significant net losses for the third quarter due to reorganization and other one-time items.

The US carrier, in bankruptcy for over a year, said that its third-quarter losses climbed to $1.2 billion, or $13.50 per share, from $475 million, or $5.45 per share, in the year-ago period. The airline said that excluding restructuring and bankruptcy-related charges of $1.4 billion, its quarterly net profits climbed to $252 million, from net losses of $234 million in the same period a year earlier. Northwest Airline’s operating revenues grew 1% to $3.4 billion, while operating expenses fell 12% to $3 billion, driven by cost cuts. Excluding reorganization expenses, the airline guided to $12 billion in revenues for 2006, and said that it would lose money during the last four months of the year. President and CEO Doug Steenland stated, "We still have work to do in order to reach our goal of sustained profitability."