NWA reports $182 million loss
Joshua Freed, Associated Press
July 22, 2004
Northwest Airlines lost less money than expected during its second quarter, as full airplanes and cost-cutting helped offset high fuel prices.
For the quarter ended June 30, Northwest said it lost $182 million, or $2.11 per share, compared with a profit of $2.45 per share, or $227 million, a year earlier. The year-ago profit was due to government reimbursement of security fees and the sale of a ticket-processing company.
Without a $104 million charge related to parked aircraft and other inventory, Northwest said it would have lost $78 million, or 90 cents per share. That was much smaller than the $1.21 per share estimate of analysts surveyed by Thomson First Call.
It wasn't just analysts who were surprised. The results were "slightly better than we had expected,'' chief financial officer Bernard Han said.
Revenue for the second quarter was $2.87 billion, up from $2.42 billion in the previous year. Analysts had predicted about $2.8 billion.
Northwest flights were 82.5 percent full, a company record. Chairman and chief executive Richard Anderson said that even with demand increasing, the company has been judicious about returning parked aircraft to the air because most of them carry little debt anyway.
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