Losses narrow at Northwest Airlines

Published: 07/02/07

The Chapter 11 process seems to be working at bankrupt Northwest Airlines, as the carrier has announced that its loss for the last three months of 2006 was USD267 million - which is an improvement of more than USD1 billion in the same period 12 months ago.

The chapter 11 re-organisation process allows a company to remain in business whilst negotiating with creditors over money owed. In the case of Northwest Airlines, the losses were reduced mainly by virtue of the fact that the airline is no longer servicing its debts.

The airline, which plans to exit bankruptcy this summer fully restructured, cites fuel as its main expense, while other costs including wages have already been slashed.

On recovery, Northwest Airlines executives are planning to focus on the long haul market, with a number of new routes under consideration including flights to New York from London Gatwick.

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