From RADAR; I'm sure there'll be plenty of other links later today....
NWA Reports First Quarter 2007 Results
Northwest Airlines Corporation reported on Monday a first quarter 2007 pre-tax profit of $100 million before reorganization items which compares to a first quarter 2006 pre-tax loss of $129 million before reorganization items. Including reorganization items, Northwest reported a first quarter 2007 net loss of $292 million versus a $1.1 billion net loss for the first quarter of 2006.
Doug Steenland said, “Our first quarter results met our expectations as compared to the business plan. The year-over-year comparisons clearly indicate that the restructuring actions that have been accomplished over the past 19 months are positioning Northwest Airlines for long-term profitability.â€
“We could not have realized these financial results without the excellent work of our employees, especially given the adverse winter weather that impacted our operations this quarter, particularly in the upper Midwest. We thank our employees for their efforts."
Discussing the airline’s restructuring, Steenland said, “During the first quarter, we made steady progress in our restructuring efforts. The Bankruptcy Court approved the company's Disclosure Statement and the Plan of Reorganization is now before the creditors for a vote. In mid-April, we announced our new board of directors that will help guide the airline once it emerges from bankruptcy protection. The mix of current and new board members will bring a variety of expertise to Northwest that will be helpful as the airline repositions itself to be a strong, profitable company going forward.â€
Commenting on the airline’s employee gainsharing programs, Steenland added, “A key element of our business plan is the various programs we have instituted to allow employees to share in the success of a profitable Northwest. So far in 2007, the airline distributed to its employees approximately $395 million in profit sharing, performance incentive payments and proceeds from unsecured claims sales that were part of the collective bargaining agreements. Through 2010, we forecast that Northwest employees will receive approximately $1.6 billion in distributions through these programs and claims.â€
He continued, “We expect to complete our restructuring process in June and emerge as a stronger and profitable company with the highest valuation in the company's history."
First quarter financial overview
Operating revenues in the first quarter decreased by 0.6 percent versus the first quarter of 2006 to $2.87 billion. System passenger revenue increased 7.5 percent to $2.2 billion on 4.7 percent more mainline available seat miles (ASMs), resulting in a 2.7 percent improvement in unit revenue. Including regional carrier revenues, Northwest’s consolidated unit revenue improved 1.3 percent on 3.1 percent more ASMs.
Operating expenses in the quarter decreased 8.0 percent year-over-year to $2.67 billion. Mainline unit costs, excluding fuel, decreased by 7.5 percent on 4.6 percent more ASMs. See accompanying consolidated notes to the financial statements for additional information regarding year-over-year comparisons.
Included in the first quarter 2007 fuel expense is approximately $28 million in mark-to-market fuel derivative gains related to future contracts. Without the favorable impact of mark-to-market fuel derivative gains, fuel averaged $1.85 per gallon, excluding taxes, down 1.3 percent versus the first quarter of last year.
Northwest's quarter-ending unrestricted cash and short-term investments balance was approximately $2.4 billion, excluding $543 million of restricted cash and short-term investments.
Neal Cohen, executive vice president and chief financial officer, said, “Building on our restructuring progress, Northwest realized significant year-over-year earnings improvement and a first quarter pre-tax profit, excluding reorganization items. This represents the first time the company has realized a first quarter profit, excluding unusual items, since 1998." Cohen added, “Northwest has achieved competitive restructured costs, further improved its premium revenue position and, over the next several years, will realize significant fleet changes that will drive continued improved financial results.â€
Discussing the current environment, Cohen said, “While we are optimistic as we look forward, we are seeing some softening in domestic revenue and we remain concerned about the impact of fuel price increases.â€
Restructuring
In early April, Northwest began soliciting creditor approval of its Plan of Reorganization after receiving Bankruptcy Court approval to do so. U.S. Bankruptcy Court Judge Allan Gropper gave Northwest permission to seek creditors’ approval after he ruled that the airline’s plan, including its Disclosure Statement, met the legal requirements. Creditors will have until May 7 to vote on the Northwest plan.
Earlier this month, in conjunction with the Unsecured Creditors' Committee, Northwest announced the make-up of its post-emergence board of directors. The new board will include continuing and new directors who bring a broad mix of skills, including airline operations, consumer marketing and branding and financial expertise to Northwest Airlines.
Key to achieving its $1.4 billion annual labor cost savings target were the labor agreements reached with all of Northwest’s unions. To date, the carrier has reached permanent labor savings agreements with the Air Line Pilots Association (ALPA), the Aircraft Mechanics Fraternal Association (AMFA), the Aircraft Technical Support Association (ATSA), the International Association of Machinists and Aerospace Workers (IAM), the Northwest Airlines Meteorologists Association (NAMA) and the Transport Workers Union of America (TWU). Last week, Northwest reached a new, tentative agreement with its flight attendants, represented by the Association of Flight Attendants-CWA (AFA). The contract is currently awaiting a flight attendant ratification vote. In addition to union contracts, the company also completed multiple rounds of salaried and management employee pay and benefit cuts.
Northwest met a key aircraft modernization target in January when the last DC-10 was retired from commercial service. European, Japanese and Hawaiian routes are now serviced by more fuel-efficient Airbus A330 and Boeing 747-400 aircraft, which also offer additional in-flight amenities. The Airbus A330 uses 30 percent less fuel to fly the same routes as the DC-10, reducing Northwest’s fuel bill while helping to safeguarding the environment.
The airline took a large step toward the introduction of new, dual-class 76-seat regional jetliners with its acquisition of Mesaba Airlines in late April. The new Northwest wholly-owned subsidiary currently operates a fleet of 50 regional aircraft that connect Northwest’s domestic hubs to small and medium size cities, especially in the Heartland. Mesaba is scheduled to receive its first of 36 seventy-six seat Bombardier CRJ-900 regional jets in May. Northwest also confirmed late last week that Mesaba will be operating a total of 17 CRJ-200s. These aircraft had been assigned to Pinnacle Airlines.
Compass Airlines won final Federal Aviation Administration approval in early April and will begin commercial service with a 50-seat Bombardier CRJ-200 jet aircraft in early May. Later this year, the Virginia-based Northwest subsidiary will begin operating dual-class Embraer 175 aircraft that comfortably seat 76 passengers. Compass is expected to operate 36 Embraer 175 regional jets by late 2008.
Employees
Northwest has remained committed to the goal that all of its employees will share in the success of the enterprise. Northwest’s 30,000 employees are expected to receive $1.6 billion in distributions from unsecured claims and profit sharing programs through 2010. Employees also received their first profit sharing checks and the airline’s unions sold up to 40 percent of their unsecured claims, delivering financial benefits of Northwest’s restructuring directly to employees.
Northwest confirmed in late April that all 729 of its pilots on furlough have been offered recall opportunities. The pilot recall process began late last year.
Customers
Northwest and joint venture partner KLM are adding or increasing service to a number of European destinations, using Northwest 757-200 aircraft equipped with winglets for improved fuel-efficiency. The aircraft will also be outfitted with new World Business Class seats and personalized in-flight entertainment options in business class. Coach class passengers will also enjoy increased legroom. The new European routes are: Hartford-Amsterdam, Detroit-Brussels and Detroit-Dusseldorf. Northwest is also expanding its Detroit-Amsterdam, Boston-Amsterdam and Detroit-Frankfurt service. The airline will resume its expanded summer service from Minneapolis/St. Paul to Asia with eight weekly frequencies and will increase the number of Seattle to Asia frequencies from 7 to 8 per week during the summer months.
NWA Reports First Quarter 2007 Results
Northwest Airlines Corporation reported on Monday a first quarter 2007 pre-tax profit of $100 million before reorganization items which compares to a first quarter 2006 pre-tax loss of $129 million before reorganization items. Including reorganization items, Northwest reported a first quarter 2007 net loss of $292 million versus a $1.1 billion net loss for the first quarter of 2006.
Doug Steenland said, “Our first quarter results met our expectations as compared to the business plan. The year-over-year comparisons clearly indicate that the restructuring actions that have been accomplished over the past 19 months are positioning Northwest Airlines for long-term profitability.â€
“We could not have realized these financial results without the excellent work of our employees, especially given the adverse winter weather that impacted our operations this quarter, particularly in the upper Midwest. We thank our employees for their efforts."
Discussing the airline’s restructuring, Steenland said, “During the first quarter, we made steady progress in our restructuring efforts. The Bankruptcy Court approved the company's Disclosure Statement and the Plan of Reorganization is now before the creditors for a vote. In mid-April, we announced our new board of directors that will help guide the airline once it emerges from bankruptcy protection. The mix of current and new board members will bring a variety of expertise to Northwest that will be helpful as the airline repositions itself to be a strong, profitable company going forward.â€
Commenting on the airline’s employee gainsharing programs, Steenland added, “A key element of our business plan is the various programs we have instituted to allow employees to share in the success of a profitable Northwest. So far in 2007, the airline distributed to its employees approximately $395 million in profit sharing, performance incentive payments and proceeds from unsecured claims sales that were part of the collective bargaining agreements. Through 2010, we forecast that Northwest employees will receive approximately $1.6 billion in distributions through these programs and claims.â€
He continued, “We expect to complete our restructuring process in June and emerge as a stronger and profitable company with the highest valuation in the company's history."
First quarter financial overview
Operating revenues in the first quarter decreased by 0.6 percent versus the first quarter of 2006 to $2.87 billion. System passenger revenue increased 7.5 percent to $2.2 billion on 4.7 percent more mainline available seat miles (ASMs), resulting in a 2.7 percent improvement in unit revenue. Including regional carrier revenues, Northwest’s consolidated unit revenue improved 1.3 percent on 3.1 percent more ASMs.
Operating expenses in the quarter decreased 8.0 percent year-over-year to $2.67 billion. Mainline unit costs, excluding fuel, decreased by 7.5 percent on 4.6 percent more ASMs. See accompanying consolidated notes to the financial statements for additional information regarding year-over-year comparisons.
Included in the first quarter 2007 fuel expense is approximately $28 million in mark-to-market fuel derivative gains related to future contracts. Without the favorable impact of mark-to-market fuel derivative gains, fuel averaged $1.85 per gallon, excluding taxes, down 1.3 percent versus the first quarter of last year.
Northwest's quarter-ending unrestricted cash and short-term investments balance was approximately $2.4 billion, excluding $543 million of restricted cash and short-term investments.
Neal Cohen, executive vice president and chief financial officer, said, “Building on our restructuring progress, Northwest realized significant year-over-year earnings improvement and a first quarter pre-tax profit, excluding reorganization items. This represents the first time the company has realized a first quarter profit, excluding unusual items, since 1998." Cohen added, “Northwest has achieved competitive restructured costs, further improved its premium revenue position and, over the next several years, will realize significant fleet changes that will drive continued improved financial results.â€
Discussing the current environment, Cohen said, “While we are optimistic as we look forward, we are seeing some softening in domestic revenue and we remain concerned about the impact of fuel price increases.â€
Restructuring
In early April, Northwest began soliciting creditor approval of its Plan of Reorganization after receiving Bankruptcy Court approval to do so. U.S. Bankruptcy Court Judge Allan Gropper gave Northwest permission to seek creditors’ approval after he ruled that the airline’s plan, including its Disclosure Statement, met the legal requirements. Creditors will have until May 7 to vote on the Northwest plan.
Earlier this month, in conjunction with the Unsecured Creditors' Committee, Northwest announced the make-up of its post-emergence board of directors. The new board will include continuing and new directors who bring a broad mix of skills, including airline operations, consumer marketing and branding and financial expertise to Northwest Airlines.
Key to achieving its $1.4 billion annual labor cost savings target were the labor agreements reached with all of Northwest’s unions. To date, the carrier has reached permanent labor savings agreements with the Air Line Pilots Association (ALPA), the Aircraft Mechanics Fraternal Association (AMFA), the Aircraft Technical Support Association (ATSA), the International Association of Machinists and Aerospace Workers (IAM), the Northwest Airlines Meteorologists Association (NAMA) and the Transport Workers Union of America (TWU). Last week, Northwest reached a new, tentative agreement with its flight attendants, represented by the Association of Flight Attendants-CWA (AFA). The contract is currently awaiting a flight attendant ratification vote. In addition to union contracts, the company also completed multiple rounds of salaried and management employee pay and benefit cuts.
Northwest met a key aircraft modernization target in January when the last DC-10 was retired from commercial service. European, Japanese and Hawaiian routes are now serviced by more fuel-efficient Airbus A330 and Boeing 747-400 aircraft, which also offer additional in-flight amenities. The Airbus A330 uses 30 percent less fuel to fly the same routes as the DC-10, reducing Northwest’s fuel bill while helping to safeguarding the environment.
The airline took a large step toward the introduction of new, dual-class 76-seat regional jetliners with its acquisition of Mesaba Airlines in late April. The new Northwest wholly-owned subsidiary currently operates a fleet of 50 regional aircraft that connect Northwest’s domestic hubs to small and medium size cities, especially in the Heartland. Mesaba is scheduled to receive its first of 36 seventy-six seat Bombardier CRJ-900 regional jets in May. Northwest also confirmed late last week that Mesaba will be operating a total of 17 CRJ-200s. These aircraft had been assigned to Pinnacle Airlines.
Compass Airlines won final Federal Aviation Administration approval in early April and will begin commercial service with a 50-seat Bombardier CRJ-200 jet aircraft in early May. Later this year, the Virginia-based Northwest subsidiary will begin operating dual-class Embraer 175 aircraft that comfortably seat 76 passengers. Compass is expected to operate 36 Embraer 175 regional jets by late 2008.
Employees
Northwest has remained committed to the goal that all of its employees will share in the success of the enterprise. Northwest’s 30,000 employees are expected to receive $1.6 billion in distributions from unsecured claims and profit sharing programs through 2010. Employees also received their first profit sharing checks and the airline’s unions sold up to 40 percent of their unsecured claims, delivering financial benefits of Northwest’s restructuring directly to employees.
Northwest confirmed in late April that all 729 of its pilots on furlough have been offered recall opportunities. The pilot recall process began late last year.
Customers
Northwest and joint venture partner KLM are adding or increasing service to a number of European destinations, using Northwest 757-200 aircraft equipped with winglets for improved fuel-efficiency. The aircraft will also be outfitted with new World Business Class seats and personalized in-flight entertainment options in business class. Coach class passengers will also enjoy increased legroom. The new European routes are: Hartford-Amsterdam, Detroit-Brussels and Detroit-Dusseldorf. Northwest is also expanding its Detroit-Amsterdam, Boston-Amsterdam and Detroit-Frankfurt service. The airline will resume its expanded summer service from Minneapolis/St. Paul to Asia with eight weekly frequencies and will increase the number of Seattle to Asia frequencies from 7 to 8 per week during the summer months.
Don't know about him but nwa did me the biggest favor when they threw my ass out the door. It took a little while but I now make more than the scabs but not quite what I was making nwa when I left. But there is lots of room for advancement and earning potential where I am now. With an 8% raise the first year I am not complaining. And when they give it to you they don't ask for 12% back. Oh did I mention the retirement, matching 401, better bennies. I no longer avoid the subject when someone ask me what I do or who I work for. Knowing you and scabcsar are still there makes it all the better! 
