Northwest posts $475 million 3rd-quarter net loss

Northwest posts $475 million 3rd-quarter net loss    Bankrupt Northwest Airlines Corp., parent company of Northwest Airlines, reported a third quarter net loss of $475 million, including $82 million in pension curtailment charges and $159 million in reorganization items, compared to a net deficit of $46 million for the same period last year.
   Northwest posted an operating loss of $167 million, compared to an operating income of $79 million in the third quarter 2004. Operating revenues improved 11 percent to $3.38 billion, from $3.05 billion. Cargo revenue was up 19 percent to $250 million.
   The airline’s fuel costs, including taxes, jumped 48 percent in the latest quarter to $893 million.
   Northwest’s quarter-end unrestricted cash balance was $1.6 billion.
   “Our third quarter results clearly demonstrate the need for Northwest to restructure expeditiously. We now are focusing on achieving a competitive labor and non-labor cost structure, strengthening our balance sheet, achieving market-level lease rates on our aircraft, developing a more efficient business model and returning to profitability,” said Doug Steenland, president and chief executive officer. “Realizing these goals will result in $2.5 billion in overall profit improvement.”
   “While all employees will contribute to our cost savings requirements, other stakeholders will be required to shoulder their fair share of the necessary burden in order for the airline to restructure successfully,” Steenland added.
   For the year to date, Northwest posted a net loss of $1.24 billion, compared to a deficit of $458 million in the same period last year. Operating loss after nine months deepened to $658 million, from a loss of $81 million after three quarters in 2004. Northwest’s operating revenues increased 10 percent to $9.37 billion, from $8.52 billion.