CHICAGO (Reuters) - Northwest Airlines Corp NWA.N, which plans to merge with Delta Air Lines Inc (DAL.N), posted a quarterly net loss of $4.1 billion Wednesday on a big one-time charge and skyrocketing fuel prices.
The loss includes a $3.9 billion non-cash goodwill impairment charge. Excluding that charge and losses associated with fuel hedges, the No. 5 U.S. airline lost $191 million in the quarter.
In the year-earlier period, while it was restructuring in bankruptcy and before its new shares were issued, Northwest lost $292 million.
First-quarter operating revenue rose 8.8 percent to $3.1 billion.
Year-over-year, the carrier saw its fuel bill jump 58 percent to $1.11 billion. All major airlines have seen similar increases in fuel costs as the price of oil has notched record highs.
Rising costs and the need to run a more efficient airline are key factors behind Northwest’s decision to merge with Delta to form the world’s largest airline.
Northwest ended the first quarter with $3.2 billion in unrestricted cash and $484 million in restricted cash.
Reporting by Kyle Peterson; editing by John Wallace