Northwest Airlines Case

1051 Words5 Pages
Northwest Airlines (NWA) The airline industry was among those hardest hit by the September 11, 2001 terrorist attacks in the United States. In this case you will examine the financial statements of one airline, Northwest Airlines. Extracts from the 10Q (quarterly report) for the third quarter of 2001 and the second quarter of 2006 are attached. Use this information to answer the following questions. 1. On which financial statement will you find information as to whether the company has been profitable or not? What were the company’s total revenues for the nine months ended 9/30/01 and 9/30/00? What do these revenues represent? What was its net income (loss) for those same periods? How does this information compare to the most recent period ended 6/30/06? (1) We can find whether the company has been profitable or not from the CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Income Statement). (2) Total Revenues for the nine months ended 9/30/01 is $ 7,920. Total Revenues for the nine months ended 9/30/00 is $ 8,535. They represent revenues earned from their core business, detail as follows: Particular | Nine Months Ended 09/30/2001 | Nine Months Ended 09/30/2000 | Passenger | 6,870 | 7,463 | Cargo | 544 | 607 | Other | 506 | 465 | Total | 7,920 | 8,535 | (3) The net loss for the nine months ended 9/30/01 is $ 207. The net income for the nine months ended 9/30/00 is $325. | Nine Months Ended 09/30/2001 | Nine Months Ended 09/30/2000 | Net Income (Loss) | (207) | 325 | Therefore in comparison, the loss has increased manifold every year. 2000 was a year with minimal profit. 2001 (Terrorist Attacks) onwards, the company has

More about Northwest Airlines Case

Open Document