Feb 28, 2006 7:08 pm US/Central
NWA Reports $1.3 Billion 4Q Loss
Minneapolis (AP) ―
Northwest Airlines Corp. reported a $1.3 billion fourth-quarter loss on Tuesday, much of it from bankruptcy expenses, even as its revenue grew.
The nation's fourth-largest carrier said it lost $2.6 billion for the full year.
The quarterly loss of $15.01 per share was more than triple its loss of $434 million, or $5 per share, during the same period last year. The most recent quarter included $922 million of bankruptcy-related charges. Northwest filed for bankruptcy protection on Sept. 14.
Revenue was $2.91 billion, up 5.9 percent from $2.75 billion during the same period a year ago.
Northwest said it reduced capacity by 8.2 percent compared to the same period a year ago, cutting domestic capacity 9.2 percent and international capacity 6.7 percent. Most of the international cut came from the suspension of its daily New York-Tokyo flight and seasonal reductions in trans-Atlantic flying.
Northwest also said it is aiming to save $400 million a year on its fleet. It has rejected or abandoned 51 mainline and regional aircraft, and renegotiated leases or financing on 140 more.
The airline said it saved $155 million on payroll expenses after it replaced mechanics who struck in August. But it also said it spent $72 million more on maintenance because it hired contractors to do work that had been done by the striking mechanics.
Northwest said it spent $1.98 per gallon on fuel, excluding taxes. That was up 42 percent over the same period last year.
It said it ended the year with $1.26 billion in unrestricted cash and short-term investments.
Also Tuesday, the IRS dropped a $38.1 million claim against Northwest for unpaid taxes and interest. In a filing in bankruptcy court, the IRS said Northwest "was not liable for the amount." It didn't say why.
"It's our understanding that it was a claim that was filed in error," said Northwest spokesman Kurt Ebenhoch. IRS spokeswoman Carrie Resch said she couldn't comment on individual taxpayer matters.
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Northwest Airlines was founded in 1926, when it began carrying air mail from the Twin Cities to Chicago on a pair of rented, open-cockpit biplanes. The company began transporting ticketed passengers almost a year later.
(© 2009 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
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