Northwest Airlines posts Q2 net loss of $377 million

Jul 24, 2008 (Datamonitor via COMTEX) -- NWA | Quote | Chart | News | PowerRating -- Northwest Airlines has reported that its net loss for the second quarter of 2008 was $377 million or $1.43 per share, compared to net income of $2.1 billion, which included $1.9 billion related to reorganization items, in the second quarter of 2007.

The reported results include a net non-cash impairment charge of $547 million and a $250 million gain associated with marking-to-market out-of-period fuel hedges. Excluding the net non-cash impairment charge, Northwest reported net income of $170 million versus the second quarter of 2007, when the airline reported net income of $205 million before the impact of reorganization items.

Northwest's operating revenues for the second quarter of 2008 rose to $3.6 billion, up 12.4%, compared to second quarter of 2007. Consolidated passenger revenue increased by 10% to $3.1 billion on 3.6% more available seat miles, resulting in a 6.1% improvement in revenue per available seat mile.

Doug Steenland, president and CEO of Northwest, said: "The unprecedented run-up in oil prices continues to pose great challenges for Northwest Airlines and the entire airline industry. In response, we have acted swiftly to reduce capacity, preserve liquidity, aggressively manage our costs and grow revenue through fare actions and additional fees and charges."

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