Northwest Airlines Reports Second Quarter 2008 Financial Results

$170 million net income excluding impact of non-cash accounting
charges

$3.3 billion in unrestricted liquidity at quarter end

Northwest/Delta merger closing anticipated 4th quarter 2008
EAGAN, Minn.--(Business Wire)--
Northwest Airlines Corporation (NYSE:NWA) today reported a second
quarter 2008 net loss of $377 million, or $1.43 per share. Reported
results include a net non-cash impairment charge of $547 million and a
$250 million gain associated with marking-to-market out-of-period fuel
hedges. These results compare to the second quarter of 2007 when
Northwest reported net income of $2.1 billion, which included $1.9
billion related to reorganization items.

Excluding the net non-cash impairment charge, Northwest reported
second quarter 2008 net income of $170 million versus the second
quarter of 2007 when the airline reported net income of $205 million
before the impact of reorganization items.

Excluding taxes and out-of-period mark-to-market adjustments on
fuel hedges, Northwest paid $3.45 per gallon for jet fuel in the
second quarter compared to $2.04 a gallon in the second quarter of
2007, an increase of 69.3 percent. Northwest's total fuel costs,
excluding out-of-period hedge gains, increased by $637 million versus
the prior year.

In commenting on second quarter results, Doug Steenland,
Northwest's president and chief executive officer said, "The
unprecedented run-up in oil prices continues to pose great challenges
for Northwest Airlines and the entire airline industry. In response,
we have acted swiftly to reduce capacity, preserve liquidity,
aggressively manage our costs and grow revenue through fare actions
and additional fees and charges."

Northwest and Delta Progress Toward DOJ Approval and Integration;
Merger Expected to Close in 4th Quarter 2008

In April, Northwest announced an agreement to merge with Delta Air
Lines. This merger is even more compelling in the current environment
and brings together two airlines that have both successfully
restructured and have unique and non-replicable assets.

Since the merger announcement, integration planning teams
comprised of leaders from both Northwest and Delta have been created.
These teams are making significant progress in the efforts to
integrate the two carriers after the merger closes, which is expected
to occur in the 4th quarter of 2008.

Since the merger announcement in April, the following progress has
been made:

-- Joint pilot contract. Northwest and Delta announced that,
subject to ratification, a joint pilot agreement that includes
full seniority integration will be in place by the close of
the merger.

-- Combined Corporate Leadership Team. Northwest and Delta
recently announced the Senior Leadership team that will lead
the new combined carrier when the merger is closed.
Additionally, key Northwest and Delta leaders were identified
who will continue to lead the two teams as the two airlines
transition to a single operating certificate over the next
18-24 months.

-- Shareholder approval vote. It was announced that the
shareholder approval vote for the merger will take place at
Northwest's annual meeting on September 25th.

-- Increased annual synergies estimate. Northwest and Delta
increased to $2.0 billion the estimate of annualized
steady-state synergies created by the merger.

-- Decreased one-time transition costs. The estimated one-time
transition costs of the merger have been reduced to
approximately $600 million.

Steenland said, "When we first contemplated this merger at the end
of 2007, as oil was approaching $100 a barrel, we knew then that the
right transaction would better position us to cope with the fuel
challenges that lay ahead. Based on our due diligence, this deal met
all the tests of the right transaction - one that would benefit our
employees, customers, shareholders and communities over the long-term.
Now, given the current fuel environment, the merger makes even more
sense as the resulting synergies and cost-savings will better allow
the combined carrier to manage through these challenges as a stronger,
global competitor."

Upon completion of the transaction, the merged carrier will
benefit from among the following competitive advantages: a global,
end-to-end network with little overlap; proven joint venture
relationships across the Trans-Atlantic; a strong balance sheet and
competitive cost structure; significant revenue and cost synergies;
manageable integration costs and the harmonious integration of
employee groups.

Steenland concluded, "Unlike previous airline mergers,
Northwest-Delta is a merger of choice. Northwest and Delta are the two
strongest network airlines, with the strongest balance sheets,
liquidity positions and best-in-class cost structures in the
industry."

Second Quarter Financial Overview

Operating Revenues

Northwest's operating revenues for the second quarter rose to $3.6
billion, up 12.4 percent from last year. Consolidated passenger
revenue increased by 10.0 percent versus the second quarter 2007 to
$3.1 billion on 3.6 percent more available seat miles (ASMs),
resulting in a 6.1 percent improvement in revenue per available seat
mile (RASM). This revenue growth was among the best in the industry
during the quarter. Excluding the impact of fresh-start accounting,
consolidated RASM increased 4.7 percent.

Mainline passenger revenue increased by 5.4 percent versus the
second quarter 2007 to $2.6 billion on 0.1 percent more mainline
available seat miles (ASMs), resulting in a 5.3 percent improvement in
revenue per available seat mile (RASM) and a 0.1 percentage point
increase in load factor. Excluding the impact of fresh-start
accounting, mainline RASM increased 3.8 percent.

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Second Quarter 2008 vs. Second Quarter 2007 - Inc/(Dec)
-------------------------------------------------------
Domestic Pacific Atlantic Mainline Consolidated
----------- -------- ---------- ---------- ------------
Passenger
Revenue (1.2%) 9.7% 28.0% 5.4% 10.0%

Passenger Unit
Revenue 5.9% 10.8% (0.2%) 5.3% 6.1%

Yield 5.0% 9.1% 4.8% 5.3% 6.6%

Capacity (6.7%) (0.9%) 28.1% 0.1% 3.6%

Load Factor 0.7 pts 1.4 pts (4.2) pts 0.1 pts (0.4) pts
*T

Commenting on the airline's revenue performance, Tim Griffin,
Northwest's executive vice president of marketing and distribution
said, "Northwest continues to deliver strong revenue performance. The
airline achieved a length-of-haul adjusted domestic RASM that is 111.4
percent of the industry average based on the most recent comparative
data available." Griffin added, "We are encouraged by the unit revenue
growth we experienced during the quarter. Additional unit revenue
growth is expected due in part to the capacity reductions previously
announced, which will help to offset higher fuel expenses."

Operating Expenses

Second quarter operating expenses of $3.3 billion, excluding the
net non-cash impairment charge, were up $504 million, or 17.8 percent
year-over-year as the result of the $637 million increase in
year-over-year fuel expense. Excluding fuel costs, the gain associated
with marking-to-market out-of-period fuel hedges, and the net non-cash
impairment charge, operating expenses increased by $123 million
year-over-year. For the quarter, Northwest's mainline unit costs per
available seat mile (CASM), excluding fuel and non-recurring items,
increased 4.7 percent year-over-year, which was favorable to prior
guidance. The increase was primarily due to the continued impact of
non-cash emergence-related items and integration expenses related to
the merger with Delta. Excluding the impact of these items, second
quarter CASM excluding fuel increased 1.0 percent.

Dave Davis, Northwest's executive vice-president and chief
financial officer, said, "Our strong second quarter ex-fuel CASM
performance demonstrates Northwest's continued focus on prudent cost
control."

Fuel continues to be Northwest's single largest cost, representing
43.7 percent of the company's second quarter operating expenses,
excluding the net non-cash impairment charge and out-of-period
mark-to-market adjustments on fuel hedges. Northwest had previously
hedged approximately 40 percent of its fuel exposure for the quarter
and realized $43 million in value from settled fuel hedge contracts
during the quarter. As of July 21st, Northwest has hedged
approximately 63 percent of its third quarter requirements, 56 percent
of its fourth quarter requirements and 21 percent of its first quarter
2009 fuel requirements.

$547 Million Non-cash Accounting Charge

Northwest finalized the goodwill impairment testing that resulted
in the $3.9 billion charge reflected in the first quarter of 2008. As
a result, it was determined that an additional net non-cash impairment
charge of $547 million was required.

Strong Total Cash Position of $3.7 billion

Northwest ended the quarter with $3.3 billion in unrestricted cash
and $424 million in restricted cash. The restricted cash balance
includes a funded tax trust of $255 million that was established in
2002. On July 15th, Northwest closed a financing of unencumbered
aircraft and engines that generated approximately $180 million in
additional liquidity. These proceeds will be reflected in Northwest's
third quarter ending cash balance.

In addressing Northwest's liquidity, Davis said, "Despite the
significant year-over-year increase in fuel related expenses during
the quarter, Northwest has maintained among the strongest liquidity
positions in the industry. Including the value of Northwest's funded
tax trust that was established in 2002, the airline's quarter ending
liquidity was $3.5 billion, or 26.6 percent of trailing 12 months
revenue."

Northwest's Continued Response to Extraordinary Fuel Costs

In response to the record increases in fuel-related costs, during
the second quarter, Northwest announced the following initiatives:

1. Fourth Quarter 2008 Capacity, Fleet and Personnel Reductions

-- Capacity Reductions. Northwest will reduce its fourth quarter
2008 system mainline capacity (domestic and international) 8.5
percent - 9.5 percent versus the fourth quarter of 2007.

-- Fleet Changes. As a result of the reduced capacity, Northwest
is removing a combination of 14 B757s and Airbus narrowbody
aircraft from the fleet. In addition, the DC9 fleet will be
reduced from 94 aircraft at the start of 2008 to 61 aircraft
(20 DC9-30s and 41 DC9-40s/50s) by year-end. The airline also
continues to take delivery of its 76-seat regional aircraft.
The 76-seat fleet, which will grow to 36 Embraer EMB-175s and
36 Bombardier CRJ900s by year-end, is approximately 30 percent
more fuel efficient than the DC9s.

-- Personnel Reductions. As a result of the fuel price driven
flight reductions, Northwest is reducing its frontline and
management personnel by 2,500. All Northwest employee groups
will be affected. The reductions are being achieved first
through a variety of voluntary programs including early-out
programs, voluntary leaves, work rule modifications and
attrition. Furloughs will be employed if voluntary means fail
to achieve the targeted reductions.

2. Revenue Enhancements/Fees Expect to Generate $250 million to
$300 million annually

-- Fees for Checked Bags. Northwest matched competitors' plans to
charge $15 for the customer's first checked bag. The new
policy applies to tickets sold on or after July 10, for travel
starting August 28, throughout the United States as well as
travel between the U.S. and Canada. Northwest also charges $25
for a second checked bag and $100 for the third and subsequent
additional checked bags. Frequent flier elites are exempt from
the policy, along with full-fare coach passengers.

-- Fees for Award Tickets. Northwest also implemented a
fuel-related service fee for WorldPerks(R) award tickets. For
WorldPerks(R) Award tickets issued in North America on or
after September 15, 2008, Northwest will charge $25 for
domestic tickets, $50 for Trans-Atlantic tickets, and $100 for
Trans-Pacific travel.

-- Fees for Ticket Changes. Northwest also increased fees for
ticket changes. Starting July 9, the fee for domestic
non-refundable ticket changes increased from $100 to $150.
International ticket change fees increased by an additional
$50 to $150 per ticket, depending on class of service and
other restrictions.

FORWARD-LOOKING STATEMENTS

Statements in this presentation that are not purely historical
facts, including statements regarding our beliefs, expectations,
intentions or strategies for the future, may be "forward-looking
statements" under the Private Securities Litigation Reform Act of
1995. All forward-looking statements involve a number of risks and
uncertainties that could cause actual results to differ materially
from the plans, intentions and expectations reflected in or suggested
by the forward-looking statements. Such risks and uncertainties
include, among others, the ability of the company to operate pursuant
to the terms of its financing facilities (particularly the related
financial covenants), the ability of the company to attract, motivate
and/or retain key executives and associates, the future level of air
travel demand, the company's future passenger traffic and yields, the
airline industry pricing environment, increased costs for security,
the cost and availability of aviation insurance coverage and war risk
coverage, the general economic condition of the U.S. and other regions
of the world, the price and availability of jet fuel, the war in Iraq,
the possibility of additional terrorist attacks or the fear of such
attacks, concerns about Severe Acute Respiratory Syndrome (SARS) and
other influenza or contagious illnesses, labor strikes, work
disruptions, labor negotiations both at other carriers and the
company, difficulties in integrating the operations of the company and
Delta following the merger, low cost carrier expansion, capacity
decisions of other carriers, actions of the U.S. and foreign
governments (including conditions imposed by U.S. or foreign
governments to obtain regulatory approval for the merger), foreign
currency exchange rate fluctuations and inflation. Other factors
include the possibility that the merger may not close, including due
to the failure to receive required stockholder or regulatory
approvals, or the failure of other closing conditions. Northwest
cautions that the foregoing list of factors is not exclusive.
Additional information with respect to the factors and events that
could cause differences between forward-looking statements and future
actual results is contained in the company's Securities and Exchange
Commission filings, including the company's Annual Report on Form 10-K
for the year ended December 31, 2007 and subsequently filed quarterly
reports on Form 10-Q and current reports on Form 8-K. We undertake no
obligation to update any forward-looking statements to reflect events
or circumstances that may arise after the date of this presentation.

Additional Information about the Merger and Where to Find It

In connection with the proposed merger, Delta filed with the
Securities and Exchange Commission ("SEC") a Registration Statement on
Form S-4 that includes a joint proxy statement of Delta and Northwest,
which also constitutes a prospectus of Delta. Delta and Northwest will
mail the joint proxy statement/prospectus to their stockholders. Delta
and Northwest urge investors and security holders to read the joint
proxy statement/prospectus regarding the proposed merger when it
becomes available because it will contain important information. You
may obtain copies of all documents filed with the SEC regarding this
transaction, free of charge, at the SEC's website (www.sec.gov). You
may also obtain these documents, free of charge, from Delta's website
(www.delta.com) under the tab "About Delta" and then under the heading
"Investor Relations" and then under the item "SEC Filings." You may
also obtain these documents, free of charge, from Northwest's website
(www.nwa.com) under the tab "About Northwest" and then under the
heading "Investor Relations" and then under the item "SEC Filings and
Section 16 Filings."

Delta, Northwest and their respective directors, executive
officers and certain other members of management and employees may be
soliciting proxies from Delta and Northwest stockholders in favor of
the merger. Information regarding the persons who may, under the rules
of the SEC, be deemed participants in the solicitation of Delta and
Northwest stockholders in connection with the proposed merger will be
set forth in the final proxy statement/prospectus when it is filed
with the SEC. You can find information about Delta's executive
officers and directors in its Annual Reports on Form 10-K (including
any amendments thereto), Current Reports on Form 8-K and other
documents subsequently filed with the SEC, as well as in its
definitive proxy statement filed with the SEC in connection with
Delta's 2008 Annual Meeting of Stockholders. You can find information
about Northwest's executive officers and directors in its Annual
Reports on Form 10-K (including any amendments thereto), Current
Reports on Form 8-K and other documents subsequently filed with the
SEC, as well as in its definitive proxy statement to be filed with the
SEC related to Northwest's 2008 Annual Meeting of Stockholders. You
can obtain free copies of these documents from Delta and Northwest
using the contact information above.

Northwest Airlines is one of the world's largest airlines with
hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam,
and approximately 1,400 daily departures. Northwest is a member of
SkyTeam, an airline alliance that offers customers one of the world's
most extensive global networks. Northwest and its travel partners
serve more than 1,000 cities in excess of 160 countries on six
continents.

Further details regarding the Northwest / Delta merger can be
found at www.newglobalairline.com.

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NORTHWEST AIRLINES CORPORATION

----------------------------------------------------------------------
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
----------------------------------------------------------------------
(Unaudited, in millions except per share amounts)

Successor (a) Predecessor Combined
-------------------- ----------- --------
Three Three
Months Period from Period from Months
Ended June 1 to April 1 to Ended %
June 30, June 30, May 31, June 30, Incr
2008 2007 2007 2007 (Decr)
-------- ----------------------- -------- ------
OPERATING REVENUES
Passenger $ 2,558 $ 861 $ 1,566 $ 2,427 5.4
Regional carrier
revenues 512 135 229 364 40.7
Cargo 212 69 129 198 7.1
Other 294 65 127 192 53.1
-------- ----------------------- --------
Total operating
revenues 3,576 1,130 2,051 3,181 12.4

OPERATING EXPENSES
Aircraft fuel and
taxes (b) 1,207 270 585 855 41.2
Salaries, wages and
benefits 685 205 412 617 11.0
Aircraft
maintenance
materials and
repairs 197 64 119 183 7.7
Selling and
marketing 197 65 124 189 4.2
Other rentals and
landing fees 153 46 94 140 9.3
Depreciation and
amortization 121 39 85 124 (2.4)
Aircraft rentals 94 31 64 95 (1.1)
Regional carrier
expenses 207 60 131 191 8.4
Other unusual items
(c) 548 - - - n/m
Other 467 155 275 430 8.6
-------- ----------------------- --------
Total operating
expenses 3,876 935 1,889 2,824 37.3

OPERATING INCOME
(LOSS) (300) 195 162 357
Operating margin (8.4)% 17.3% 7.9% 11.2%

OTHER INCOME
(EXPENSE)
Interest expense,
net (108) (40) (87) (127)
Investment income 24 17 25 42
Foreign currency
gain (loss) 8 1 - 1
Other unusual items
(c) (213) - - -
Other (2) 2 (2) -
-------- ----------------------- --------
Total other
income (expense) (291) (20) (64) (84)
-------- ----------------------- --------

INCOME (LOSS) BEFORE
REORGANIZATION
ITEMS AND INCOME
TAXES (591) 175 98 273

Reorganization
items, net (d) - - 1,944 1,944
-------- ----------------------- --------

INCOME (LOSS) BEFORE
INCOME TAXES (591) 175 2,042 2,217

Income tax expense
(benefit) (c) (e) (214) 69 (1) 68
-------- ----------------------- --------

NET INCOME (LOSS) $ (377) $ 106 $ 2,043 $ 2,149
======== ======================= ========

Earnings (Loss) per
common share: (f)
Basic $ (1.43) $ 0.41 $ 23.37
Diluted $ (1.43) $ 0.41 $ 16.87

Average shares used
in computation:
Basic 263 262 87
Diluted 263 262 113

See accompanying consolidated notes.
*T

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NORTHWEST AIRLINES CORPORATION

----------------------------------------------------------------------
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
----------------------------------------------------------------------
(Unaudited, in millions except per share amounts)

Successor (a) Predecessor Combined
---------------------- ------------ ----------
Six Months Period From Period From Six Months
Ended June 1 to January 1 to Ended %
June 30, June 30, May 31, June 30, Incr
2008 2007 2007 2007 (Decr)
---------- ------------------------ ---------- ------
OPERATING
REVENUES
Passenger $ 4,797 $ 861 $ 3,768 $ 4,629 3.6
Regional
carrier
revenues 922 135 521 656 40.5
Cargo 410 69 318 387 5.9
Other 574 65 317 382 50.3
---------- ------------------------ ----------
Total
operating
revenues 6,703 1,130 4,924 6,054 10.7

OPERATING
EXPENSES
Aircraft fuel
and taxes (b) 2,321 270 1,289 1,559 48.9
Salaries,
wages and
benefits 1,355 205 1,027 1,232 10.0
Aircraft
maintenance
materials and
repairs 418 64 303 367 13.9
Selling and
marketing 390 65 315 380 2.6
Other rentals
and landing
fees 291 46 235 281 3.6
Depreciation
and
amortization 252 39 206 245 2.9
Aircraft
rentals 187 31 160 191 (2.1)
Regional
carrier
expenses 412 60 342 402 2.5
Other unusual
items (c) 4,483 - - - n/m
Other 947 155 684 839 12.9
---------- ------------------------ ----------
Total
operating
expenses 11,056 935 4,561 5,496 101.2

OPERATING INCOME
(LOSS) (4,353) 195 363 558
Operating
margin (64.9)% 17.3% 7.4% 9.2%

OTHER INCOME
(EXPENSE)
Interest
expense, net (222) (40) (219) (259)
Investment
income 61 17 56 73
Foreign
currency gain
(loss) - 1 - 1
Other unusual
items (c) (213) - - -
Other (3) 2 (2) -
---------- ------------------------ ----------
Total other
income
(expense) (377) (20) (165) (185)
---------- ------------------------ ----------

INCOME (LOSS)
BEFORE
REORGANIZATION
ITEMS AND
INCOME TAXES (4,730) 175 198 373

Reorganization
items, net
(d) - - 1,551 1,551
---------- ------------------------ ----------

INCOME (LOSS)
BEFORE INCOME
TAXES (4,730) 175 1,749 1,924

Income tax
expense
(benefit) (c)
(e) (214) 69 (2) 67
---------- ------------------------ ----------

NET INCOME
(LOSS) $ (4,516) $ 106 $ 1,751 $ 1,857
========== ======================== ==========

Earnings (Loss)
per common
share: (f)
Basic $ (17.19) $ 0.41 $ 20.03
Diluted $ (17.19) $ 0.41 $ 14.28

Average shares
used in
computation:
Basic 263 262 87
Diluted 263 262 113

See accompanying consolidated notes.
*T

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NORTHWEST AIRLINES CORPORATION

CONSOLIDATED NOTES
----------------------------------------------------------------------
(Unaudited)

(a) Northwest Airlines Corporation ("NWA Corp." or the "Company") is a
holding company whose operating subsidiary is Northwest Airlines,
Inc. ("Northwest"). In September 2005, NWA Corp. and Northwest,
along with certain direct and indirect subsidiaries filed Chapter
11 petitions for relief in the U.S. Bankruptcy Court for the
Southern District of New York. On May 31, 2007, the Company
emerged from Chapter 11.

In connection with its emergence from Chapter 11, the Company
adopted fresh-start reporting in accordance with American
Institute of Certified Public Accountants' Statement of Position
90-7, Financial Reporting by Entities in Reorganization Under the
Bankruptcy Code ("SOP 90-7"). References to "Successor" refer to
NWA Corp. on or after June 1, 2007, after giving effect to the
application of fresh-start reporting. References to "Predecessor"
refer to NWA Corp. prior to June 1, 2007. Thus, the consolidated
financial statements prior to June 1, 2007 reflect results based
upon the historical cost basis of the Company while the post-
emergence consolidated financial statements reflect the new basis
of accounting incorporating the fair value adjustments made in
recording the effects of fresh-start reporting. Therefore, the
post-emergence periods are not comparable to the pre-emergence
periods. However, for discussions on the results of operations,
the Company has compared the Successor Company's results for the
three months ended June 30, 2008 to the Predecessor Company's
results for two months ended May 31, 2007 and the Successor
Company's results for one month ended June 30, 2007.

In addition to the fair value adjustments required for fresh-start
reporting, the Company changed its policies pertaining to the
accounting for frequent flyer obligations and breakage of
passenger tickets. Additionally, on April 24, 2007, Mesaba
Aviation, Inc. was acquired by the Company and became a wholly-
owned consolidated subsidiary. See the table of Reconciliation of
Year-over-Year Variances for further details.

(b) During the three and six months ended June 30, 2008, the Company
recorded $250 million in mark-to-market gains and $237 million in
mark-to-market gains, respectively, related to fuel derivative
contracts that will settle during the remainder of 2008. During
the three and six months ended June 30, 2007, the Company
recorded $6 million in mark-to-market losses and $22 million in
mark-to-market gains, respectively, related to fuel derivative
contracts that settled in subsequent periods during 2007.

(c) During the first quarter of 2008, the Company recorded a non-cash
goodwill impairment charge of $3.9 billion to reduce the book
value of Northwest's equity to its implied fair value as of the
merger announcement date. This goodwill impairment charge was a
preliminary estimate. During the second quarter, the Company
completed Step 2 of its goodwill impairment test by measuring the
fair value of its assets and liabilities in order to compute the
implied fair value of its goodwill as described in SFAS No. 142,
Goodwill and Other Intangible Assets ("SFAS No. 142"). As a
result of this analysis, the Company recorded a net non-cash
charge of $547 million. Included in this net non-cash charge are
$0.6 million in impairment charges related to spare engines. See
the table of Reconciliation of Goodwill and Other Impairment Step
2 Adjustments for further details.

(d) In connection with its bankruptcy proceedings and adoption of
fresh-start reporting, the Company recorded largely non-cash
reorganization income (expense) and, in accordance with GAAP,
these items are separately classified in the Condensed
Consolidated Statements of Operations.

(e) Generally, the Company would not record a tax benefit related to a
quarterly net loss unless it had a high degree of confidence that
it would record a full-year profit. A tax benefit of $214 million
was recorded during the second quarter of 2008 to decrease the
deferred tax liability associated with the impairment of an
indefinite-lived intangible asset.

(f) Successor EPS. For the three and six months ended June 30, 2008,
approximately 12 million restricted stock units and stock options
to purchase shares of the Successor Company's common stock were
outstanding but excluded from the computation of diluted earnings
per share because the Company reported a net loss for these
periods.

For the period June 1 to June 30, 2007, approximately 13 million
restricted stock units and stock options to purchase shares of
the Successor Company's common stock were outstanding but
excluded from the computation of diluted earnings per share
because the effect of including the shares would have been anti-
dilutive.

Predecessor EPS. Predecessor basic earnings per share was computed
based on the Predecessor's weighted average shares outstanding.
Dilutive earnings per share included securities related to the
Company's Series C Preferred Stock and convertible debt.

At May 31, 2007, stock options to purchase approximately 7 million
shares of common stock were outstanding but excluded from the
computation of diluted earnings per share because the effect of
including the shares would have been anti-dilutive.
*T

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NORTHWEST AIRLINES CORPORATION

----------------------------------------------------------------------
RECONCILIATION OF YEAR-OVER-YEAR VARIANCES
----------------------------------------------------------------------
(Unaudited, in millions)

As a result of the adoption of fresh-start reporting, the Company's
financial statements on or after June 1, 2007 are not comparable
with its pre-emergence financial statements because they are, in
effect, those of a new entity. In addition to the fair value
adjustments required for fresh-start reporting, the Company changed
its policies pertaining to the accounting for frequent flyer
obligations and breakage of passenger tickets. The effects of fresh-
start reporting, the policy changes and the impact of exit-related
stock compensation expense on the Company's Condensed Consolidated
Statement of Operations are itemized below in column (A).

During the first quarter of 2008, the Company recorded a non-cash
goodwill impairment charge of $3.9 billion to reduce the book value
of Northwest's equity to its implied fair value as of the merger
announcement date. This goodwill impairment charge was a preliminary
estimate. During the second quarter, the Company completed Step 2 of
its goodwill impairment test by measuring the fair value of its
assets and liabilities in order to compute the implied fair value of
its goodwill as described in SFAS No. 142. As a result of this
analysis, the Company recorded a net non-cash charge of $547
million. Included in this net non-cash charge are $0.6 million in
impairment charges related to spare engines. The impact on the
Company's year-over-year variance as a result of these charges is
itemized in column (B).

On April 24, 2007, Mesaba Aviation, Inc. was acquired by the Company
and became a wholly-owned consolidated subsidiary. The impact on the
Company's year-over-year variance as a result of this consolidation
is itemized in column (C).

Excluding the items listed above, the comparable year-over-year
operating performance variances are itemized in column (D).
*T

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Successor Combined
------------- -------------

Three Months Three Months Total
Ended Ended Incr
June 30, 2008 June 30, 2007 (Decr)
------------- ------------- -------
OPERATING REVENUES
Passenger $2,558 $2,427 $ 131
Regional carrier revenues 512 364 148
Cargo 212 198 14
Other 294 192 102
------------- ------------- -------
Total operating revenues 3,576 3,181 395

OPERATING EXPENSES
Aircraft fuel and taxes 1,207 855 352
Salaries, wages and
benefits 685 617 68
Aircraft maintenance
materials and repairs 197 183 14
Selling and marketing 197 189 8
Other rentals and landing
fees 153 140 13
Depreciation and
amortization 121 124 (3)
Aircraft rentals 94 95 (1)
Regional carrier expenses 207 191 16
Other unusual items 548 - 548
Other 467 430 37
------------- ------------- -------
Total operating expenses 3,876 2,824 1,052

OPERATING INCOME (LOSS) (300) 357 (657)
Operating margin (8.4)% 11.2% (19.6)pts.

(A) (B) (C) (D)
-------------------------------------------
Increase (Decrease) Due To:
-------------------------------------------
Fresh-Start/ Mesaba Total
Exit-Related Impairment Net of Incr
Stk Comp. Exp. Charges Elim Operations (Decr)
------------------------------------------- -------
OPERATING REVENUES
Passenger $ (7) $ - $ - $ 138 $ 131
Regional carrier
revenues 4 - - 144 148
Cargo - - - 14 14
Other 16 - - 86 102
------------------------------------------- -------
Total
operating
revenues 13 - - 382 395

OPERATING EXPENSES
Aircraft fuel
and taxes - - - 352 352
Salaries, wages
and benefits 13 - 12 43 68
Aircraft
maintenance
materials and
repairs - - 4 10 14
Selling and
marketing - - - 8 8
Other rentals
and landing
fees - - 2 11 13
Depreciation and
amortization (1) - 1 (3) (3)
Aircraft rentals - - - (1) (1)
Regional carrier
expenses - - (20) 36 16
Other unusual
items - 548 - - 548
Other - - - 37 37
------------------------------------------- -------
Total
operating
expenses 12 548 (1) 493 1,052

OPERATING INCOME
(LOSS) 1 (548) 1 (111) (657)
Operating margin

----------------------------------------------------------------------
RECONCILIATION OF YEAR-OVER-YEAR OPERATING EXPENSE VARIANCES
----------------------------------------------------------------------
(Unaudited, in millions)

Total operating expenses $3,876 $2,824 $ 1,052
Excluding:
Goodwill and other impairment
Step 2 adjustments 548 - 548
Mainline fuel 1,207 855 352
Regional carrier expenses -
fuel only 109 80 29
------- ------- --------
$2,012 $1,889 $ 123
======= ======= ========
*T

-0-
*T
NORTHWEST AIRLINES CORPORATION

----------------------------------------------------------------------
REPORTED NET INCOME / (LOSS) EXCLUDING NON-RECURRING
ITEMS
----------------------------------------------------------------------
(Unaudited, in
millions)

Successor Combined
------------------ ------------------
Three Months Ended Three Months Ended
June 30, 2008 June 30, 2007
------------------ ------------------

Net income / (loss) $ (377) $2,149

Excluding unusual
items:
Reorganization
items, net - 1,944
Goodwill and other
impairment Step 2
adjustments (547) -
------------------ ------------------

Net income / (loss)
excluding unusual
items 170 205

Excluding:
Mark-to-market on
fuel derivative
contracts to be
settled in future
periods 250 (6)
------------------ ------------------

Adjusted net income
/ (loss) $ (80) $ 211
================== ==================

----------------------------------------------------------------------
RECONCILIATION OF GOODWILL AND OTHER IMPAIRMENT STEP 2
ADJUSTMENTS
----------------------------------------------------------------------
(Unaudited, in
millions)

Successor
--------------------------------------------------
Three Months
Ended
June 30,
2008
Excluding
Three Months Ended Goodwill and Other Goodwill
and Other
June 30, 2008 Impairment Step 2 Impairment
Step 2
(as reported) Adjustments Adjustments
------------------ ------------------ ------------
Operating revenues $3,576 $ - $3,576

Operating expenses 3,876 548 3,328
------------------ ------------------ ------------

Operating income
(loss) (300) (548) 248
Operating margin (8.4)% 6.9%

Other income
(expense) (291) (213) (78)
------------------ ------------------ ------------

Income (loss) before
income taxes (591) (761) 170

Income tax
expense
(benefit) (214) (214) -
------------------ ------------------ ------------

Net income (loss) $ (377) $ (547) $ 170
================== ================== ============
*T

-0-
*T
NORTHWEST AIRLINES CORPORATION

----------------------------------------------------------------------
PASSENGER AND REGIONAL CARRIER REVENUES AND STATISTICAL RESULTS
----------------------------------------------------------------------
(Unaudited)

Three Months Ended Percent
June 30, Change
---------------------- -------
2008 2007
-------- --------
Scheduled Service -
Consolidated: (1)
Available seat miles (ASM)
(millions) 24,519 23,656 3.6
Revenue passenger miles
(RPM) (millions) 20,852 20,192 3.3
Passenger load factor 85.0 % 85.4 % (0.4)pts.
Revenue passengers
(millions) 17.5 17.4 0.6

Passenger revenue per RPM
(yield) 14.73 cents 13.82 cents 6.6
Passenger revenue per RPM
(yield) excluding fresh-
start 14.70 cents 13.98 cents 5.2

Passenger revenue per ASM
(RASM) 12.52 cents 11.80 cents 6.1
Passenger revenue per ASM
(RASM) excluding
fresh-start 12.50 cents 11.94 cents 4.7

Fuel gallons consumed -
Consolidated (millions) (1) 436 433 0.7

Scheduled Service - Mainline:
(2)
Available seat miles (ASM)
(millions) 21,913 21,897 0.1
Revenue passenger miles
(RPM) (millions) 18,839 18,811 0.1
Passenger load factor 86.0 % 85.9 % 0.1 pts.
Revenue passengers
(millions) 13.3 14.1 (5.7)

Passenger revenue per RPM
(yield) 13.58 cents 12.90 cents 5.3
Passenger revenue per RPM
(yield) excluding fresh-
start 13.58 cents 13.08 cents 3.8

Passenger revenue per ASM
(RASM) 11.67 cents 11.08 cents 5.3
Passenger revenue per ASM
(RASM) excluding
fresh-start 11.67 cents 11.24 cents 3.8

Fuel gallons consumed -
Mainline (millions) (2) 376 390 (3.6)

Six Months Ended Percent
June 30, Change
---------------------- -------
2008 2007
------- --------
Scheduled Service -
Consolidated: (1)
Available seat miles (ASM)
(millions) 47,878 46,549 2.9
Revenue passenger miles
(RPM) (millions) 40,067 38,810 3.2
Passenger load factor 83.7 % 83.4 % 0.3 pts.
Revenue passengers
(millions) 33.3 33.0 0.9

Passenger revenue per RPM
(yield) 14.27 cents 13.62 cents 4.8
Passenger revenue per RPM
(yield) excluding fresh-
start 14.32 cents 13.70 cents 4.5

Passenger revenue per ASM
(RASM) 11.95 cents 11.35 cents 5.3
Passenger revenue per ASM
(RASM) excluding
fresh-start 11.98 cents 11.42 cents 4.9

Fuel gallons consumed -
Consolidated (millions) (1) 856 851 0.6

Scheduled Service - Mainline:
(2)
Available seat miles (ASM)
(millions) 43,058 43,148 (0.2)
Revenue passenger miles
(RPM) (millions) 36,459 36,303 0.4
Passenger load factor 84.7 % 84.1 % 0.6 pts.
Revenue passengers
(millions) 25.6 27.0 (5.2)

Passenger revenue per RPM
(yield) 13.16 cents 12.75 cents 3.2
Passenger revenue per RPM
(yield) excluding fresh-
start 13.23 cents 12.84 cents 3.0

Passenger revenue per ASM
(RASM) 11.14 cents 10.73 cents 3.8
Passenger revenue per ASM
(RASM) excluding
fresh-start 11.20 cents 10.81 cents 3.6

Fuel gallons consumed -
Mainline (millions) (2) 743 769 (3.4)

----------------------------------------------------------------------
PASSENGER AND REGIONAL CARRIER REVENUES
----------------------------------------------------------------------
(Unaudited)

Domestic Pacific Atlantic
-------- ------- --------
As reported:
-----------------------------
Second Quarter 2008
Passenger revenues (in
millions) $ 1,529 $ 576 $ 453

Increase (Decrease) from
2007:
Passenger revenues (1.2)% 9.7 % 28.0 %

Scheduled service ASMs
(capacity) (6.7)% (0.9)% 28.1 %
Scheduled service RPMs
(traffic) (5.9)% 0.6 % 22.0 %
Passenger load factor 0.7 pts. 1.4 pts. (4.2)pts.
Yield 5.0 % 9.1 % 4.8 %
Passenger RASM 5.9 % 10.8 % (0.2)%

Excluding fresh-start:
-----------------------------
Second Quarter 2008
Passenger revenues (in
millions) $ 1,524 $ 582 $ 451

Increase (Decrease) from
2007:
Passenger revenues (3.5)% 10.0 % 27.8 %
Yield 2.6 % 9.2 % 4.8 %
Passenger RASM 3.5 % 10.9 % (0.2)%

Mainline Consolidated
-------- ------------
As reported:
--------------------------------------
Second Quarter 2008
Passenger revenues (in millions) $ 2,558 $ 3,070

Increase (Decrease) from 2007:
Passenger revenues 5.4 % 10.0 %

Scheduled service ASMs (capacity) 0.1 % 3.6 %
Scheduled service RPMs (traffic) 0.1 % 3.3 %
Passenger load factor 0.1 pts. (0.4)pts.
Yield 5.3 % 6.6 %
Passenger RASM 5.3 % 6.1 %

Excluding fresh-start:
--------------------------------------
Second Quarter 2008
Passenger revenues (in millions) $ 2,557 $ 3,065

Increase (Decrease) from 2007:
Passenger revenues 3.9 % 8.5 %
Yield 3.8 % 5.2 %
Passenger RASM 3.8 % 4.7 %

(1) Consolidated statistics include Northwest Airlink regional
carriers.
(2) Mainline statistics exclude Northwest Airlink regional carriers,
which is consistent with how the Company reports statistics to
the Department of Transportation ("DOT").
*T

-0-
*T
NORTHWEST AIRLINES CORPORATION

----------------------------------------------------------------------
MAINLINE OPERATING STATISTICAL RESULTS (1)
----------------------------------------------------------------------
(Unaudited)

Three Months Ended Percent
June 30, Change
------------------- -------
2008 2007
------ ------

Total operating ASM (millions) 22,058 21,921 0.6

Passenger service operating expense
per total ASM (2) (3) 12.04 cents 10.47 cents 15.0
Mainline fuel expense per total ASM 4.66 cents 3.42 cents 36.3
Mainline fuel expense per total ASM,
excluding mark-to-market
adjustments related to fuel
derivative contracts that settle in
future periods 5.56 cents 3.39 cents 64.0

Cargo ton miles (CTM) (millions) 459 505 (9.1)
Cargo revenue per ton mile 46.27 cents 39.19 cents 18.1

Fuel gallons consumed (millions) 376 390 (3.6)
Average fuel cost per gallon,
excluding fuel taxes 287.80 cents 205.89 cents 39.8

Average fuel cost per gallon,
excluding fuel taxes and mark-to-
market adjustments related to fuel
derivative contracts that settle in
future periods 345.10 cents 203.88 cents 69.3

Number of operating aircraft at end
of period
Full-time equivalent employees at
end of period

Six Months Ended Percent
June 30, Change
------------------- -------
2008 2007
------ ------

Total operating ASM (millions) 43,327 43,188 0.3

Passenger service operating expense
per total ASM (2) (3) 12.14 cents 10.39 cents 16.8
Mainline fuel expense per total ASM 4.60 cents 3.19 cents 44.2
Mainline fuel expense per total ASM,
excluding mark-to-market
adjustments related to fuel
derivative contracts that settle in
future periods 5.04 cents 3.23 cents 56.0

Cargo ton miles (CTM) (millions) 917 962 (4.7)
Cargo revenue per ton mile 44.69 cents 40.24 cents 11.1

Fuel gallons consumed (millions) 743 769 (3.4)
Average fuel cost per gallon,
excluding fuel taxes 283.82 cents 191.74 cents 48.0

Average fuel cost per gallon,
excluding fuel taxes and mark-to-
market adjustments related to fuel
derivative contracts that settle in
future periods 311.24 cents 194.44 cents 60.1

Number of operating aircraft at end
of period 339 372 (8.9)
Full-time equivalent employees at
end of period 29,674 29,589 0.3
*T

(1) Mainline statistics exclude Northwest Airlink regional
carriers, which is consistent with how the Company reports statistics
to the DOT.

(2) This financial measure excludes non-passenger service
expenses. The Company believes that providing financial measures
directly related to passenger service operations allows investors to
evaluate and compare the Company's core operating results to those of
the industry.

(3) Passenger service operating expense excludes the following
items unrelated to passenger service operations, net of eliminations
where applicable:

-0-
*T
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
(In millions) 2008 2007 2008 2007
--------- -------- --------- --------
Goodwill and other impairment
Step 2 adjustments $ 548 $ - $ 4,483 $ -
Regional carrier expenses 446 305 859 579
Freighter operations 157 154 323 288
MLT Inc. 39 50 84 105
Other 29 19 48 35
*T

-0-
*T
NORTHWEST AIRLINES CORPORATION

----------------------------------------------------------------------
SELECTED BALANCE SHEET DATA
----------------------------------------------------------------------
(Unaudited, in millions)

Successor Successor
---------------- ---------------
June 30, December 31,
2008 2007
---------------- ---------------
Cash and cash equivalents $ 3,216 $ 2,939
Unrestricted short-term
investments 40 95
Restricted cash, cash equivalents
and short-term investments 424 725
Total assets 20,867 24,517
Total debt and capital leases,
including current maturities 7,490 7,088
Total liabilities 17,843 17,140
Total common stockholders' equity
(deficit) 3,024 7,377

----------------------------------------------------------------------
THIRD QUARTER 2008 AND 2008 FULL YEAR GUIDANCE
----------------------------------------------------------------------

3Q 2008 Forecast 2008 Forecast
(year-over-year (year-over-year
change) change)
--------------------------------
Scheduled service ASMs (capacity)
Domestic (1) (10%) - (11%) (9%) - (10%)
International 9% - 10% 6% - 7%
Mainline (1) (1.5%) - (2.5%) (2.5%) - (3.5%)
Regional 50% - 55% 45% - 50%
Consolidated (2) 2% - 3% 0.5% - 1.5%

Passenger service operating
expense per total ASM excluding
fuel (1) 1.5% - 2.5% 3% - 4%

3Q 2008 Forecast 2008 Forecast
---------------- ---------------
Average fuel cost per gallon,
excluding fuel taxes (1) (3) $4.06 $3.45
Fuel gallons consumed (millions) 375 1,452

(1) Mainline statistics exclude Northwest Airlink regional carriers,
which is consistent with how the Company reports statistics to
the DOT.
(2) Consolidated statistics include Northwest Airlink regional
carriers.
(3) Average fuel cost per gallon, based on the forward fuel curve as
of July 21, 2008 excluding fuel taxes and mark-to-market
adjustments related to fuel derivative contracts that settle in
future periods.
*T

Northwest Airlines

Copyright Business Wire 2008