NYTimes.com Article: Northwest Has Loss and Sees No Upturn Soon

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Northwest Has Loss and Sees No Upturn Soon

April 17, 2003
By THE ASSOCIATED PRESS






MINNEAPOLIS, April 16 (AP) - First-quarter losses at the
Northwest Airlines Corporation more than doubled to $396
million as the war in Iraq and higher fuel costs battered
the travel industry, the company said today.

Richard Anderson, the chief executive, said that he saw no
signs that business would be improving anytime soon, and he
warned that more reductions in costs would be needed.

In March, Northwest cut its work force by 4,900 and
grounded 20 airplanes as fewer people traveled because of
the war.

The first-quarter loss was equivalent to $4.62 a share and
was 132 percent larger than the loss of $171 million, or
$2.01 a share, a year earlier.

Revenue increased slightly in the quarter, to $2.25
billion, up from $2.18 billion a year earlier.

Mr. Anderson said more cuts were planned. "As labor is the
single biggest expense of running Northwest, we are now
conducting discussions with each of our unions concerning
cost restructuring," he said.

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 a share. The consensus estimate of analysts surveyed
by Thomson First Call was a loss of $4.75 a share.

On Monday, Northwest told some employees that it wanted to
eliminate another 1,000 jobs. And on Tuesday the company
asked its ground workers to absorb about $120 million in
annual cuts, including the elimination of another 1,450
jobs.

Northwest plans to drop 165 additional pilots by the end of
August and has said another 110 pilots could be cut later.

Northwest also said that its fuel expenses increased 41
percent in the first quarter, to $369 million, compared
with $261 million a year earlier.

http://www.nytimes.com/2003/04/17/business/17NORT.html?ex=1051584280&ei=1&en=60177803ec929263



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