Oct. 29--Northwest Airlines reported a third quarter profit today, its first full quarter since emerging from bankruptcy.
Despite a summer with crowded skies and Northwest's own scheduling problems, the airline reported net income for the three months ended Sept. 30 of $244 million, or 93 cents per share. That compares to a loss of $1.18 billion, or 93 cents per share, in the same period last year, when the airline was still in bankruptcy.
The numbers show that the summer months were kind to Northwest, even though its scheduling problems led to cancellations of thousands of flights in June and July. In both of those months, Northwest pilots pointed to a change in their contract and a lack of pilots as the problems fueling the cancellations.
In August, the airline and the pilots cut a deal that reduced the amount of time pilots fly each month before they start receiving overtime pay. The airline's performance rebounded in August and it didn't see the same wave of flight cancellations.
Although the airline's operating revenues declined 1 percent during the most recent quarter, operating expenses were down 4 percent, contributing to the company's net gain. The company said its pre-tax profit of $405 million was its highest in 10 years.
The third quarter performance "makes it possible for us to continue to invest in the airline so that we can enhance shareholder value, remain competitive, and preserve and enhance the jobs of our co-workers," said Northwest CEO Doug Steenland.
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