Northwest posts USD$496mln monthly loss
Reuters | Mar. 30, 2006
Bankrupt US-based Northwest Airlines posted a net loss of USD$496 million in February, driven largely by reorganization-related expenses, according to a regulatory filing on Wednesday.
The airline said it had recorded USD$431 million in restructuring expenses, including USD$425 million in aircraft-related charges and USD$7 million in professional fees related to the bankruptcy process.
The airline posted a consolidated operating loss of USD$29.8 million for the month and had USD$769 million in cash and cash equivalents on its books as of February 28, 2006, according to the Securities and Exchange Commission filing.
The net loss also included interest expenses.
Northwest, which has been battered by high fuel prices and competition from discount carriers, is restructuring its business under bankruptcy protection.
The airline said it needs about USD$2.2 billion in annual reductions to be competitive.