Northwest reports $2.15-billion profit for second quarter
July 31, 2007
BY MARGARITA BAUZA
FREE PRESS STAFF WRITER
Northwest Airlines CEO Doug Steenland said this morning that the airline had a net profit of $2.15 billion for the second quarter of 2007, compared with a net loss of $285 million in the second quarter a year ago, when the company was in bankruptcy.
“We are well-positioned for profitability and earnings growth,” Steenland said during a conference call, adding that the airline’s immediate focus is to restore its performance amid heavy flight cancellations at the end of June and July as pilots have neared maximum hours they are allowed to fly.
“Operational performance has been unacceptable,” he said. “Our immediate focus is to restore operational reliability. We sincerely apologize for the inconvenience these cancellations have caused our customers.”
Northwest by early afternoon had canceled 61 flights today, 19 of those at Detroit Metro Airport. As the airline's pilots have approached their maximum allowable number of flight hours this month, the airline has canceled nearly 2,000 flights this month, after dropping more than 2,300 in June.
He acknowledged the troubles had been difficult “for our employees and we especially thank them for their tireless efforts.”
Excluding reorganization items, Northwest reported a second quarter pre-tax profit of $273 million, compared to a pre-tax profit of $179 million in the second quarter of last year
The airline emerged from bankruptcy on May 31. It reported that cancellations have cost the airline $25 million.
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