MINNEAPOLIS_Northwest Airlines Corp. said it lost $1.1 billion (€870 million) in the first quarter, attributing most of the red ink to bankruptcy expenses.
The airline said on Wednesday that its loss would have been $129 million (€101.6 million) without $975 million (€767.9 million) in bankruptcy expenses. Operating revenue for the quarter ended March 31 was $2.9 billion (€2.28 billion), up 3.3 percent from the same period a year ago.
It lost $537 million during the same period last year, before filing for bankruptcy protection in September.
Northwest, based in Eagan, Minnesota, took $1 billion (€780 million) in charges for renegotiating and rejecting aircraft leases, but recorded a $49 million (€38.34 million) gain for ending a pension plan.
It is aiming to save $400 million (€313 million) a year on its fleet by taking advantage of its ability in bankruptcy court to reject or renegotiate leases. Northwest said it has rejected or re-negotiated leases for 211 aircraft so far.
Northwest said its operating expenses dropped 6.3 percent to $2.9 billion (€2.27 billion) for the quarter. Salaries, wages and benefits dropped almost 30 percent because of wage reductions.
The airline said it spent $1.87 (€1.46) per gallon on fuel (not counting taxes) for the quarter, up almost 36 percent from the same period last year.
Northwest reduced its capacity by almost 11 percent for the first quarter, including a drop of 12.5 percent for domestic flights and 8.2 percent on international flights.
"Although we have made progress in our restructuring process, we still have work to do to position the company for long-term success," President and Chief Executive Doug Steenland said in a prepared statement.
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