This article from NYTimes.com has been sent to you by psa188@xxxxxxxxx /-------------------- advertisement -----------------------\ Explore more of Starbucks at Starbucks.com. http://www.starbucks.com/default.asp?ci=1015 \----------------------------------------------------------/ Northwest Airlines Sees Losses Double April 16, 2003 By THE ASSOCIATED PRESS Filed at 10:51 a.m. ET MINNEAPOLIS (AP) -- Northwest Airlines' first quarter losses more than doubled to $396 million as the travel industry suffered from the combined effects of war in Iraq and higher fuel prices. Chief Executive Richard Anderson said Wednesday he saw no signs that business would improve anytime soon. The loss was equivalent to $4.62 a share, roughly 132 percent more than the loss of $171 million, or $2.01 a share, a year earlier. Revenue increased slightly in the first quarter to $2.25 billion, up from $2.18 billion a year earlier. In March, Northwest grounded 20 airplanes and reduced its work force by 4,900 positions as fewer people traveled due to the war. Anderson said more cuts are planned. ``Because we believe that revenues will not recover to historical levels, we are continuing to address costs in every area of the operation,'' Anderson said. ``As labor is the single biggest expanse of running Northwest, we are now conducting discussions with each of our unions concerning cost restructuring.'' The net loss included $58 million in charges for job cuts and $20 million in higher pension costs related to the work force reduction. Excluding those charges, Northwest lost $318 million, or $3.71 per share. The consensus estimate of analysts surveyed by Thomson First Call was $4.75 per share. On Monday, Northwest told its mechanics, custodians and cleaners that the airline wants to eliminate another 1,000 of their jobs. And Tuesday, the company asked its other ground workers to absorb about $120 million in annual cuts, including another 1,450 job cuts. Northwest plans to drop 165 additional pilots from its payroll by the end of August and has said another 110 pilots could be cut later in the year. ``In light of the cost adjustments made at many of our competitors, it is imperative that we reduce our labor expenses so that we can restore Northwest to profitability,'' Anderson said. Northwest also said fuel expenses jumped 41 percent in the first quarter to $369 million, from $261 million a year earlier. Bernie Han, executive vice president and chief financial officer, said the company has completed six rounds of cost cuts since the spring of 2001, when the economy began souring, and is doing everything possible to reduce non-labor costs. At the end of the first quarter, Northwest had $2.3 billion in cash, including a $217 million tax refund received in February. The Eagan-based carrier reported $2.15 billion in unrestricted cash. ^------ On the Net: Northwest Airlines: http://www.nwa.com ^------ Karren Mills may be reached at kamills(at)ap.org http://www.nytimes.com/aponline/business/AP-Earns-Northwest-Airlines.html?ex=1051525182&ei=1&en=d367f01ae34c1741 HOW TO ADVERTISE --------------------------------- For information on advertising in e-mail newsletters or other creative advertising opportunities with The New York Times on the Web, please contact onlinesales@xxxxxxxxxxx or visit our online media kit at http://www.nytimes.com/adinfo For general information about NYTimes.com, write to help@xxxxxxxxxxxx Copyright 2003 The New York Times Company