CHICAGO (Reuters) - Bankrupt Northwest Airlines Corp.NWACQ.PK on Tuesday posted a quarterly loss largely on expenses related to its restructuring.
The No. 5 U.S. airline, which has been in Chapter 11 bankruptcy since September 2005, said its loss amounted to $267 million, or $3.06 per share, compared with a loss of $1.3 billion, or $15.01 per share, a year earlier.
Excluding reorganization items, Northwest posted a loss of $7 million in the quarter, compared with a loss of $386 million a year earlier.
Northwest, which said it is on track to exit bankruptcy in the second quarter, reported quarterly revenue of $2.98 billion, up 2.2 percent from the year-earlier quarter.
The company said fuel was its top expense, amounting to $808 million, down 1.3 percent.
The carrier, like many traditional rivals, has been suffering from low-cost competition and soaring fuel costs. Airlines like Northwest have lately been fighting back by cutting costs. It has also been cutting back on the number of seats it sells and selling the remaining seats at higher prices to maximize profit margins.
Northwest has lost more than $4.15 billion since filing for Chapter 11 bankruptcy protection in September 2005, according to the company’s quarterly reports.
Northwest is cutting its costs by $2.5 billion a year and has already met its labor cost savings goal of $1.4 billion by renegotiating its union contracts.