Northwest records Q1 profits

Northwest Airlines
Corporation has reported a first quarter 2007
pre-tax profit of $100 million before reorganization items.The figure compares to a first quarter 2006 pre-tax loss of $129 million before
reorganization items. Including reorganization items, Northwest
reported a first quarter 2007 net loss of $292 million versus a $1.1
billion net loss for the first quarter of 2006.

  Doug Steenland, Northwest Airlines president and chief executive
officer, said, “Our first quarter results met our expectations as
compared to the business plan. The year-over-year comparisons clearly
indicate that the restructuring actions that have been accomplished
over the past 19 months are positioning Northwest Airlines for
long-term profitability.”

  “We could not have realized these financial results without the
excellent work of our employees, especially given the adverse winter
weather that impacted our operations this quarter, particularly in the
upper Midwest. We thank our employees for their efforts.”

  Discussing the airline’s restructuring, Steenland said, “During
the first quarter, we made steady progress in our restructuring
efforts. The Bankruptcy Court approved the company’s Disclosure
Statement and the Plan of Reorganization is now before the creditors
for a vote. In mid-April, we announced our new board of directors that
will help guide the airline once it emerges from bankruptcy
protection. The mix of current and new board members will bring a
variety of expertise to Northwest that will be helpful as the airline
repositions itself to be a strong, profitable company going forward.”

  Commenting on the airline’s employee gainsharing programs,
Steenland added, “A key element of our business plan is the various
programs we have instituted to allow employees to share in the success
of a profitable Northwest. So far in 2007, the airline distributed to
its employees approximately $395 million in profit sharing,
performance incentive payments and proceeds from unsecured claims
sales that were part of the collective bargaining agreements. Through
2010, we forecast that Northwest employees will receive approximately
$1.6 billion in distributions through these programs and claims.”


  He continued, “We expect to complete our restructuring process in
June and emerge as a stronger and profitable company with the highest
valuation in the company’s history.”