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, 2003
Commission file number 0-23642
NORTHWEST AIRLINES CORPORATION
(Exact name of registrant as specified in its charter)
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Delaware |
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41-1905580 |
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(State or other jurisdiction of incorporation or organization) |
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(I.R.S. Employer Identification No.) |
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2700 Lone Oak Parkway, Eagan, Minnesota |
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55121 |
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(Address of principal executive offices) |
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(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
Indicate by check mark whether the registrant is an accelerated filer as defined in Exchange Rule Act 12b-2. Yes ý No o
As of June 30, 2003, there were 85,841,579 shares of the registrant’s Common Stock outstanding.
Northwest Airlines Corporation
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Condensed Consolidated Balance Sheets — June 30, 2003 and December 31, 2002. |
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Condensed Consolidated Statements of Cash Flows — Six months ended June 30, 2003 and 2002. |
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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. |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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2
Item 1. Financial Statements
Northwest Airlines Corporation
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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Three Months Ended |
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Six Months Ended |
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June 30 |
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June 30 |
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(Unaudited, in millions except per share amounts) |
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2003 |
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2002 |
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2003 |
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2002 |
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Operating Revenues |
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Passenger |
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$ |
1,906 |
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$ |
2,052 |
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$ |
3,754 |
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$ |
3,870 |
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Cargo |
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181 |
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176 |
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348 |
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324 |
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Other |
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210 |
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178 |
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445 |
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392 |
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Total operating revenues |
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2,297 |
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2,406 |
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4,547 |
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4,586 |
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Operating Expenses |
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Salaries, wages and benefits |
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944 |
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936 |
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1,989 |
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1,860 |
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Aircraft fuel and taxes |
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375 |
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360 |
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786 |
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651 |
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Selling and marketing |
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170 |
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200 |
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346 |
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418 |
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Depreciation and amortization |
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162 |
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131 |
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304 |
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266 |
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Other rentals and landing fees |
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138 |
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141 |
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281 |
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264 |
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Aircraft rentals |
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120 |
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116 |
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238 |
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229 |
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Aircraft maintenance materials and repairs |
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95 |
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151 |
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228 |
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296 |
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Other |
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366 |
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417 |
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774 |
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844 |
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Total operating expenses |
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2,370 |
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2,452 |
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4,946 |
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4,828 |
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Operating Loss |
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(73 |
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(46 |
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(399 |
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(242 |
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Other Income (Expense) |
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U. S. Government Appropriations |
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209 |
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— |
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209 |
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— |
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Interest expense, net |
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(113 |
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(100 |
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(224 |
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(194 |
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Interest of mandatorily redeemable preferred security holder |
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(6 |
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(7 |
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(12 |
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(12 |
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Investment income |
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11 |
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12 |
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20 |
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23 |
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Foreign currency loss |
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(2 |
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(11 |
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(3 |
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(11 |
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Other |
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201 |
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11 |
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210 |
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34 |
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Total other income (expense) |
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300 |
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(95 |
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200 |
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(160 |
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Income (Loss) Before Income Taxes |
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227 |
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(141 |
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(199 |
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(402 |
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Income tax benefit |
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— |
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(48 |
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(30 |
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(138 |
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Net Income (Loss) |
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$ |
227 |
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$ |
(93 |
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$ |
(169 |
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$ |
(264 |
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Earnings (Loss) per common share: |
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Basic |
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$ |
2.64 |
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(1.08 |
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$ |
(1.97 |
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$ |
(3.09 |
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