Northwest Airlines 4Q loss narrows

MINNEAPOLIS - Northwest Airlines Corp. posted a narrower fourth-quarter loss Tuesday, beating Wall Street's forecasts despite higher fuel costs.

For the three months through December, the carrier reported a loss of $8 million, or 3 cents per share. During the same period last year, Northwest had a loss of $267 million, or $3.06 per share, because of hefty bankruptcy expenses.

The most recent figure includes a $14 million pretax loss related to Northwest's stake in Pinnacle Airlines. Excluding that item, Northwest said it broke even.

Analysts had been expecting a loss of 8 cents per share, according to a survey by Thomson Financial. Those forecasts typically exclude one-time items.

Northwest said revenue increased to $3.10 billion, from $2.98 billion previously. Analysts predicted revenue of $3.03 billion, on average.

Northwest made more money per passenger on fuller planes, even as it reduced capacity by 1.5 percent. Its revenue per available seat mile — the amount it collected from each passenger it flew one mile — rose 4.8 percent to 11.32 cents.

And while recession fears have hurt the outlook for airlines, Northwest Executive Vice President for Marketing and Distribution Tim Griffin said in a statement that "we have seen no evidence of slowing demand."

Operating costs rose $123 million, or 4.3 percent; without fuel costs, those expenses would have fallen by $6 million, Northwest said.

Northwest emerged from bankruptcy protection May 31. The carrier, the nation's fifth-largest by revenue, did not comment on speculation of a combination with Delta Air Lines Inc. Speaking on a conference call, Chief Executive Doug Steenland said Northwest would not offer any new updates on Tuesday.

Northwest is an early customer of the new Boeing 787, which has been set back by delays. Steenland said Northwest still expects to have the 787 in service by mid-2009.

For the full year, not counting reorganization items, Northwest said it earned $764 million in 2007, up from $301 million in 2006. Including bankruptcy items it earned $2.09 billion, up from a loss of $2.84 billion in 2006.

Northwest shares rose 37 cents to $18.31 in morning trading.