Northwest Airlines 2Q Loss Widens
Monday, August 7, 2006; 10:49 AM
EAGAN, Minn. -- Northwest Airlines Corp., which has been operating under Chapter 11 bankruptcy protection, on Monday posted a wider second-quarter loss as restructuring costs mount.
After paying dividends on preferred stock, losses totaled $285 million, or $3.27 per share, foe the three months ended June 30 compared with $234 million, or $2.69 per share, in the prior-year quarter.
Excluding the cost of restructuring and other onetime items, Northwest said it earned $179 million versus a loss of $288 million last year.
Revenue edged higher to $3.29 billion from $3.2 billion in the prior-year period. Operating expenses fell 12 percent to $3 billion.
The airline industry has been suffering the effect of higher fuel costs. Northwest said its fuel averaged $2.10 per gallon, excluding taxes _ up 28 percent year over year. The company offset higher fuel prices by cutting capacity, reducing the number of gallons consumed by 12 percent.