North by Northwest
Veteran
""Ratings on Northwest Airlines Inc. are based on the consolidated credit quality of parent Northwest Airlines Corp., whose corporate credit rating reflects a weak airline industry revenue environment, substantial debt and pension obligations, and a need to lower its labor costs," said Standard & Poor's credit analyst Philip Baggaley. "However, the company's credit profile benefits from substantial liquidity, with $2.76 billion of unrestricted cash (the largest amount, relative to the company's size, of any large U.S. airline, excepting Southwest Airlines Co.), and ongoing cost-cutting efforts," the credit analyst continued.
Northwest Airlines Corp. reported a fourth-quarter 2003 net loss of $122 million before various special gains (earnings of $322 million including those items, the largest of which was a gain on the initial public offering of a regional airline affiliate). This was an improvement on the net loss of $178 million, before special items, in the fourth quarter of 2002. Northwest's revenue performance improved more, year over year, than those of most other large U.S. airlines, buoyed by improving demand and favorable foreign currency changes (strengthening of the yen and euro against the dollar) on Pacific and Atlantic routes. Still, like other airlines, Northwest was hurt by high fuel prices and needs to lower its labor costs to restore profitability and maintain competitive with low-cost carriers. A 12% increase in Pax revenue is stellar! Good job NWA!
Northwest Airlines Corp. reported a fourth-quarter 2003 net loss of $122 million before various special gains (earnings of $322 million including those items, the largest of which was a gain on the initial public offering of a regional airline affiliate). This was an improvement on the net loss of $178 million, before special items, in the fourth quarter of 2002. Northwest's revenue performance improved more, year over year, than those of most other large U.S. airlines, buoyed by improving demand and favorable foreign currency changes (strengthening of the yen and euro against the dollar) on Pacific and Atlantic routes. Still, like other airlines, Northwest was hurt by high fuel prices and needs to lower its labor costs to restore profitability and maintain competitive with low-cost carriers. A 12% increase in Pax revenue is stellar! Good job NWA!
