UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2002
Commission file number 0-23642
NORTHWEST AIRLINES CORPORATION
(Exact name of registrant as specified in its charter)
|
Delaware |
41-1905580 |
|
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
|
|
|
|
2700 Lone Oak Parkway, Eagan, Minnesota |
55121 |
|
(Address of principal executive offices) |
(Zip Code) |
Registrant’s telephone number, including area code (612) 726-2111
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
As of June 30, 2002, there were 85,779,345 shares of the registrant’s Common Stock outstanding.
Northwest Airlines Corporation
|
Page No. |
|||
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
3 |
|
|
|
|
|
|
|
|
|
Condensed Consolidated Balance Sheets - June 30, 2002 and December 31, 2001. |
4 |
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of Cash Flows - Six months ended June 30, 2002 and 2001. |
5 |
|
|
|
|
|
|
|
|
6 |
|
|
|
|
|
|
|
|
The Computations of Ratio of Earnings to Fixed Charges and Ratio of Earnings to Fixed Charges and Preferred Stock Requirements are attached hereto and filed as Exhibits 12.1 and 12.2. |
|
|
|
|
|
|
|
|
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
10 |
|
|
|
|
|
|
|
|
15 |
||
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
16 |
||
|
|
16 |
||
|
|
16 |
||
|
|
|
|
|
|
17 |
|||
|
|
|
|
|
|
17 |
|||
2
Northwest Airlines Corporation
|
|
|
Three
Months Ended |
|
Six Months
Ended |
|
||||||||
|
(Unaudited, in millions except per share amounts) |
|
2002 |
|
2001 |
|
2002 |
|
2001 |
|
||||
|
Operating Revenues |
|
|
|
|
|
|
|
|
|
||||
|
Passenger |
|
$ |
2,052 |
|
$ |
2,331 |
|
$ |
3,870 |
|
$ |
4,539 |
|
|
Cargo |
|
176 |
|
182 |
|
324 |
|
367 |
|
||||
|
Other |
|
178 |
|
202 |
|
392 |
|
420 |
|
||||
|
Total operating revenues |
|
2,406 |
|
2,715 |
|
4,586 |
|
5,326 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
||||
|
Salaries, wages and benefits |
|
936 |
|
970 |
|
1,860 |
|
2,022 |
|
||||
|
Aircraft fuel and taxes |
|
360 |
|
476 |
|
651 |
|
956 |
|
||||
|
Selling and marketing |
|
200 |
|
283 |
|
418 |
|
565 |
|
||||
|
Aircraft maintenance materials and repairs |
|
151 |
|
185 |
|
296 |
|
380 |
|
||||
|
Depreciation and amortization |
|
131 |
|
130 |
|
266 |
|
258 |
|
||||
|
Other rentals and landing fees |
|
141 |
|
134 |
|
264 |
|
264 |
|
||||
|
Aircraft rentals |
|
116 |
|
111 |
|
229 |
|
220 |
|
||||
|
Other |
|
417 |
|
462 |
|
844 |
|
933 |
|
||||
|
Total operating expenses |
|
2,452 |
|
2,751 |
|
4,828 |
|
5,598 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Operating Loss |
|
(46 |
) |
(36 |
) |
(242 |
) |
(272 |
) |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Other Income (Expense) |
|
|
|
|
|
|
|
|
|
||||
|
Interest expense, net |
|
(100 |
) |
(83 |
) |
(194 |
) |
(157 |
) |
||||
|
Interest of mandatorily redeemable preferred security holder |
|
(7 |
) |
(7 |
) |
(12 |
) |
(13 |
) |
||||
|
Investment income |
|
12 |
|
21 |
|
23 |
|
37 |
|
||||
|
Foreign currency gain (loss) |
|
(11 |
) |
(2 |
) |
(11 |
) |
— |
|
||||
|
Other |
|
11 |
|
15 |
|
34 |
|
40 |
|
||||
|
Total other income (expense) |
|
(95 |
) |
(56 |
) |
(160 |
) |
(93 |
) |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Loss Before Income Taxes |
|
(141 |
) |
(92 |
) |
(402 |
) |
(365 |
) |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Income tax benefit |
|
(48 |
) |
(37 |
) |
(138 |
) |
(139 |
) |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net Loss |
|
$ |
(93 |
) |
$ |
(55 |
) |
$ |
(264 |
) |
$ |
(226 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
||||||||||