NewHampshire Black Bears
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+ $244M (I think thats what I read). 
3rd. Quarter profit
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Kev3188
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Correct, NHBB...
Here's some more info (from the NWA employee site).
On Monday, Northwest Airlines Corporation reported a third quarter pre-tax profit of $405 million, a 57 percent improvement versus the third quarter of 2006, excluding reorganization items. For the first nine months of 2007, Northwest reported a $778 million pre-tax profit, a 153 percent improvement versus the first nine months of 2006, also excluding reorganization items.
Northwest Airlines reported net income for the third quarter of $244 million, or $0.93 per diluted share.
Doug Steenland, president and chief executive officer, said, “Our third quarter pre-tax margin was 12 percent, the highest among U.S. network carriers. Our pre-tax profit of $405 million was the airline’s highest quarterly pre-tax profit in 10 years and the third highest in Company history. Our year-to-date pre-tax margin of 8.2 percent, excluding reorganization items, is also the highest among the network carriers.â€
Steenland added, “These results are consistent with our five-year business plan, when adjusted for higher fuel prices. This strong performance makes it possible for us to continue to invest in the airline so that we can enhance shareholder value, remain competitive, and preserve and enhance the jobs of our co-workers.â€
Steenland praised employees for helping the airline achieve industry-leading financial results, saying, “This remarkable turnaround reflects the hard work and commitment of our employees and demonstrates, once again, that we are all squarely focused on making the new Northwest Airlines a world-class employer and our customers’ preferred choice for air travel.â€
As part of fulfilling its commitments to employees, the airline has accrued $72 million in profit sharing and performance incentive payments for the first nine months of the year.
OPERATIONS
The third quarter also marked the return to Northwest’s historical position of leadership in operational reliability.
“Since late July, the airline has successfully implemented actions that resulted in improved operating performance during August, September and October. Northwest’s system-wide completion factor improved from 97 percent in July to 99.2 percent in August; 99.7 percent in September; and 99.4 percent month-to-date in October,†Steenland said.
FINANCIAL RESULTS SUMMARY
Operating revenues for the third quarter were $3.4 billion, down 0.9 percent from last year. Excluding fresh-start accounting impacts, consolidated passenger revenue per available seat mile (RASM) increased 3.5 percent on a 0.8 percent decrease in available seat miles (ASMs). The RASM performance was driven by a 2.1 percent improvement in yield on a 1.2 percentage point improvement in load factor during the quarter.
Third quarter operating expenses were down $122 million, or four percent, year-over-year to $2.9 billion. At the same time, the airline’s mainline unit costs excluding fuel were flat versus last year.
Fuel expenses in the third quarter averaged $2.11 per gallon, excluding taxes and before out of period hedge gains, and were down 1.5 percent versus the third quarter of 2006. Northwest had previously hedged 40 percent of its fuel exposure for the quarter using a combination of collars and swaps. These hedges generated $23 million in fuel cost-savings for the quarter.
Dave Davis, executive vice president and chief financial officer, said, “The third quarter again illustrated the continued strengthening of our financial position. Third quarter EBITDAR was $674 million, a 20 percent EBITDAR margin, which was the highest among network carriers.â€
Davis added, “Today we have one of the strongest balance sheets in the industry and we ended the quarter with $3.1 billion in unrestricted cash.â€
EBITDAR is defined as operating income excluding depreciation, amortization and aircraft rents.
KEY INITIATIVES
Discussing developments since the carrier emerged from bankruptcy, Steenland noted, “Northwest continues to forge ahead with key initiatives that will generate further earnings improvements, enhance shareholder value, strengthen our competitive position, and benefit our employees.â€
Update on Key Initiatives:
A. Profitability-enhancing Re-fleeting
• Northwest is halfway through its $6 billion re-fleeting program. The program has added thirty-two Airbus A330s to the airline’s fleet, and will involve the acquisition of seventy-two 76-seat regional jets manufactured by Embraer and Bombardier, and eighteen Boeing 787s.
• On Oct. 17, Northwest took delivery of its 32nd A330. In addition to being the operator of the world’s largest A330 fleet, Northwest operates the youngest international fleet of any U.S. carrier, with the retirement of its 747-200s and DC10s from scheduled service.
• Earlier this year Northwest began taking delivery of state-of-the-art 76-seat dual-class Embraer 175s and Bombardier CRJ900s. Two of each of these aircraft types will enter Northwest’s fleet every month through the end of 2008 at which time Northwest will operate thirty-six E-175s and thirty-six CRJ900s.
• Northwest is the North American launch customer for the Boeing 787 Dreamliner with eighteen firm orders and fifty options. Together with the Boeing 747-400, the 787 is expected to become the mainstay of Northwest’s Pacific fleet. The Company is working with Boeing to refine the delivery schedule and expects the aircraft to be in service in the first quarter 2009 – well ahead of the peak summer season in the Pacific.
B. New Routes
• On Sept. 25, the U.S. Department of Transportation awarded Northwest the authority to operate Detroit-Shanghai daily nonstop service starting March 25, 2009.
• On June 6, Northwest began nonstop service from Detroit to Dusseldorf, and on July 1 daily nonstop service from Hartford, Conn. to Amsterdam started. These new routes use Boeing 757 aircraft equipped for transatlantic service.
• Earlier this month, Northwest announced that it will inaugurate two new routes to Europe in the spring of 2008: Minneapolis/St. Paul to Paris, and Portland, Ore. to Amsterdam. In addition, in September, KLM Royal Dutch Airlines announced that it will operate, as part of the NWA/KLM joint venture, daily nonstop service between Amsterdam and Dallas/Fort Worth beginning in 2008. This year marks the 10th Anniversary of Northwest’s joint venture agreement with KLM.
C. Customer Service Enhancements
• Northwest continues to invest in facilities and equipment, information technology, and numerous other initiatives to improve its customers’ experience, including:
o Systems to provide a more convenient experience at the airport, such as the ability to use a hand-held device to check-in for flights.
o New Customer Relationship Management (CRM) tools and programs to attract and reward high value customers.
o New equipment and information technology to build on Northwest’s leadership in luggage handling.
o Improvements to Northwest’s WorldClubs.
D. Employee Focus
• The airline has launched the “Northwest Experience†for front-line employees – the largest employee collaboration initiative in more than a decade – as well as a newly redesigned Captain Leadership program for Northwest pilots. Both are designed to better equip employees to work together as a team in delivering best-in-class customer service.
• Since the beginning of 2007, Northwest has contributed $95 million to its employee pension plans.
• Northwest has established over sixty employee involvement teams. As part of this initiative, the Company is collaborating with employees to implement their ideas to improve the customer experience as well as make Northwest Airlines a better place to work.
Steenland said, “Today’s solid performance is indicative of the bright future ahead for Northwest Airlines. The ultimate beneficiaries of our success will be the shareholders, customers, employees and the communities we serve.â€
Here's some more info (from the NWA employee site).
On Monday, Northwest Airlines Corporation reported a third quarter pre-tax profit of $405 million, a 57 percent improvement versus the third quarter of 2006, excluding reorganization items. For the first nine months of 2007, Northwest reported a $778 million pre-tax profit, a 153 percent improvement versus the first nine months of 2006, also excluding reorganization items.
Northwest Airlines reported net income for the third quarter of $244 million, or $0.93 per diluted share.
Doug Steenland, president and chief executive officer, said, “Our third quarter pre-tax margin was 12 percent, the highest among U.S. network carriers. Our pre-tax profit of $405 million was the airline’s highest quarterly pre-tax profit in 10 years and the third highest in Company history. Our year-to-date pre-tax margin of 8.2 percent, excluding reorganization items, is also the highest among the network carriers.â€
Steenland added, “These results are consistent with our five-year business plan, when adjusted for higher fuel prices. This strong performance makes it possible for us to continue to invest in the airline so that we can enhance shareholder value, remain competitive, and preserve and enhance the jobs of our co-workers.â€
Steenland praised employees for helping the airline achieve industry-leading financial results, saying, “This remarkable turnaround reflects the hard work and commitment of our employees and demonstrates, once again, that we are all squarely focused on making the new Northwest Airlines a world-class employer and our customers’ preferred choice for air travel.â€
As part of fulfilling its commitments to employees, the airline has accrued $72 million in profit sharing and performance incentive payments for the first nine months of the year.
OPERATIONS
The third quarter also marked the return to Northwest’s historical position of leadership in operational reliability.
“Since late July, the airline has successfully implemented actions that resulted in improved operating performance during August, September and October. Northwest’s system-wide completion factor improved from 97 percent in July to 99.2 percent in August; 99.7 percent in September; and 99.4 percent month-to-date in October,†Steenland said.
FINANCIAL RESULTS SUMMARY
Operating revenues for the third quarter were $3.4 billion, down 0.9 percent from last year. Excluding fresh-start accounting impacts, consolidated passenger revenue per available seat mile (RASM) increased 3.5 percent on a 0.8 percent decrease in available seat miles (ASMs). The RASM performance was driven by a 2.1 percent improvement in yield on a 1.2 percentage point improvement in load factor during the quarter.
Third quarter operating expenses were down $122 million, or four percent, year-over-year to $2.9 billion. At the same time, the airline’s mainline unit costs excluding fuel were flat versus last year.
Fuel expenses in the third quarter averaged $2.11 per gallon, excluding taxes and before out of period hedge gains, and were down 1.5 percent versus the third quarter of 2006. Northwest had previously hedged 40 percent of its fuel exposure for the quarter using a combination of collars and swaps. These hedges generated $23 million in fuel cost-savings for the quarter.
Dave Davis, executive vice president and chief financial officer, said, “The third quarter again illustrated the continued strengthening of our financial position. Third quarter EBITDAR was $674 million, a 20 percent EBITDAR margin, which was the highest among network carriers.â€
Davis added, “Today we have one of the strongest balance sheets in the industry and we ended the quarter with $3.1 billion in unrestricted cash.â€
EBITDAR is defined as operating income excluding depreciation, amortization and aircraft rents.
KEY INITIATIVES
Discussing developments since the carrier emerged from bankruptcy, Steenland noted, “Northwest continues to forge ahead with key initiatives that will generate further earnings improvements, enhance shareholder value, strengthen our competitive position, and benefit our employees.â€
Update on Key Initiatives:
A. Profitability-enhancing Re-fleeting
• Northwest is halfway through its $6 billion re-fleeting program. The program has added thirty-two Airbus A330s to the airline’s fleet, and will involve the acquisition of seventy-two 76-seat regional jets manufactured by Embraer and Bombardier, and eighteen Boeing 787s.
• On Oct. 17, Northwest took delivery of its 32nd A330. In addition to being the operator of the world’s largest A330 fleet, Northwest operates the youngest international fleet of any U.S. carrier, with the retirement of its 747-200s and DC10s from scheduled service.
• Earlier this year Northwest began taking delivery of state-of-the-art 76-seat dual-class Embraer 175s and Bombardier CRJ900s. Two of each of these aircraft types will enter Northwest’s fleet every month through the end of 2008 at which time Northwest will operate thirty-six E-175s and thirty-six CRJ900s.
• Northwest is the North American launch customer for the Boeing 787 Dreamliner with eighteen firm orders and fifty options. Together with the Boeing 747-400, the 787 is expected to become the mainstay of Northwest’s Pacific fleet. The Company is working with Boeing to refine the delivery schedule and expects the aircraft to be in service in the first quarter 2009 – well ahead of the peak summer season in the Pacific.
B. New Routes
• On Sept. 25, the U.S. Department of Transportation awarded Northwest the authority to operate Detroit-Shanghai daily nonstop service starting March 25, 2009.
• On June 6, Northwest began nonstop service from Detroit to Dusseldorf, and on July 1 daily nonstop service from Hartford, Conn. to Amsterdam started. These new routes use Boeing 757 aircraft equipped for transatlantic service.
• Earlier this month, Northwest announced that it will inaugurate two new routes to Europe in the spring of 2008: Minneapolis/St. Paul to Paris, and Portland, Ore. to Amsterdam. In addition, in September, KLM Royal Dutch Airlines announced that it will operate, as part of the NWA/KLM joint venture, daily nonstop service between Amsterdam and Dallas/Fort Worth beginning in 2008. This year marks the 10th Anniversary of Northwest’s joint venture agreement with KLM.
C. Customer Service Enhancements
• Northwest continues to invest in facilities and equipment, information technology, and numerous other initiatives to improve its customers’ experience, including:
o Systems to provide a more convenient experience at the airport, such as the ability to use a hand-held device to check-in for flights.
o New Customer Relationship Management (CRM) tools and programs to attract and reward high value customers.
o New equipment and information technology to build on Northwest’s leadership in luggage handling.
o Improvements to Northwest’s WorldClubs.
D. Employee Focus
• The airline has launched the “Northwest Experience†for front-line employees – the largest employee collaboration initiative in more than a decade – as well as a newly redesigned Captain Leadership program for Northwest pilots. Both are designed to better equip employees to work together as a team in delivering best-in-class customer service.
• Since the beginning of 2007, Northwest has contributed $95 million to its employee pension plans.
• Northwest has established over sixty employee involvement teams. As part of this initiative, the Company is collaborating with employees to implement their ideas to improve the customer experience as well as make Northwest Airlines a better place to work.
Steenland said, “Today’s solid performance is indicative of the bright future ahead for Northwest Airlines. The ultimate beneficiaries of our success will be the shareholders, customers, employees and the communities we serve.â€
groundcontrol
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Got that right.
They're saving $200M a year on maintenance alone.
Hope the pilots enjoy the junk they're flying, may those auto pilots, fmc's and catIII not fail them.
NewHampshire Black Bears
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Kev3188,
I'm conflicted. Maybe you can help me.
My dilemma is that I can't decide, which was BIG RED's smartest move, as far as A/C purchases go.
1a. 747-400
1b. A-330
1c. EMB-175
1d. 747F
This IS a real hard one(for me), and I've got to tell ya, that I keep coming back to the EMB-175
I'm conflicted. Maybe you can help me.
My dilemma is that I can't decide, which was BIG RED's smartest move, as far as A/C purchases go.
1a. 747-400
1b. A-330
1c. EMB-175
1d. 747F
This IS a real hard one(for me), and I've got to tell ya, that I keep coming back to the EMB-175
bagboy
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Isn't the answer 1e, your "state of the art" crj900.Kev3188,
I'm conflicted. Maybe you can help me.
My dilemma is that I can't decide, which was BIG RED's smartest move, as far as A/C purchases go.
1a. 747-400
1b. A-330
1c. EMB-175
1d. 747F
This IS a real hard one(for me), and I've got to tell ya, that I keep coming back to the EMB-175
North by Northwest
Veteran
A bright group we have. Slash pay (except ours) to show profit! Viola!
"Oh...don't forget to pretend we care, hopefully they (NW employees) will forget that we pocketed $400 MILLION of their money...(He He)"
Why don't the employees just buy this joint, now that it is public. The employees could do an LBO...I don't know anyone who wouldn't work for dam near nothing to get rid of this incompetent group of "from your pocket to mine"
"Oh...don't forget to pretend we care, hopefully they (NW employees) will forget that we pocketed $400 MILLION of their money...(He He)"
Why don't the employees just buy this joint, now that it is public. The employees could do an LBO...I don't know anyone who wouldn't work for dam near nothing to get rid of this incompetent group of "from your pocket to mine"
CynicalResAgent
Veteran
Congrats on Q3 profits. Hopefully things will turn around for you guys and things wil get better. At least your CEO doesn't seem to be determined to sell you off like the guys at UA. Anyway here's to a good Q4 result.
Kev3188
Veteran
Kev3188,
I'm conflicted. Maybe you can help me.
My dilemma is that I can't decide, which was BIG RED's smartest move, as far as A/C purchases go.
1a. 747-400
1b. A-330
1c. EMB-175
1d. 747F
This IS a real hard one(for me), and I've got to tell ya, that I keep coming back to the EMB-175
Of the ones you mentioned, the A330 wins hands down. Choosing it over the 777 was absolutely the right move, IMHO. It seems to be the right A/C for the routes it's on, as well as opening up new routes or replacing routes that the 744 was too big for. Lotsa flexibility as well....And of course, the fact that it's "ramp friendly" didn't factor in at all in my decision...
Close second would be the E175. For most of the same reasons as the A330, albeit on a smaller and/or domestic scale. In fact, if it was flown by mainline instead of CP, I would have picked it.
NewHampshire Black Bears
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~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
THAT is probably (one of) the WORST A/C that they bought.
U
UAL_TECH
Guest
It was done at UA to get rid of Wolf.
Didn't work out too well from the 'employee/owner' perspective.
Bottom line is the BOD and top execs run the company, sometimes into the ground, but they still come out smelling like a rose(KERP included).
JMHO,
B) UT
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Don't forget the charm school the employees are now going the have to go to. ..."John Budd, a human resources professor at the University of Minnesota, said the danger for Northwest management is that some employees will view the training program "as a feel-good exercise to cover up the fact that they are working harder for less pay...."
NewHampshire Black Bears
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Of the ones you mentioned, the A330 wins hands down. Choosing it over the 777 was absolutely the right move, IMHO. It seems to be the right A/C for the routes it's on, as well as opening up new routes or replacing routes that the 744 was too big for. Lotsa flexibility as well....And of course, the fact that it's "ramp friendly" didn't factor in at all in my decision...
Close second would be the E175. For most of the same reasons as the A330, albeit on a smaller and/or domestic scale. In fact, if it was flown by mainline instead of CP, I would have picked it.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
These folks that want company's like AA or NW, to spin off there commuters.. are IMHO...NUTS.
Explaining futher, If NW was to give ALL of it's "regional" flying to Compass ONLY, using the E-175 ONLY, or A/E buying/using E-175's(ONLY) would be a huge atvantage in my opinion !
North by Northwest
Veteran
Forget that our "needed" paycuts went into their pockets, for a job well done?
When Hell freezes over.
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