Northwest Airlines sees up to $100M pretax profit

MINNEAPOLIS (AP) -- Northwest Airlines says it could make a pretax profit of $60 million to $100 million in the quarter.

The estimate came from Chief Financial Dave Davis, who was speaking at an airline investor conference in New York on Thursday. The profit prediction did not count potential hedging gains or losses, and the company did not give an earnings-per-share figure.

Northwest said it had $3.3 billion in unrestricted cash as of this week. Northwest is being bought out by Delta Air Lines Inc.; the two have said they expect to have about $6 billion in cash after the deal closes.

Davis said new fees for checked baggage brought in $370,000 on Aug. 31 alone, and the company expects $150 million to $200 million per year in new revenue from those fees.

(Copyright 2008 by The Associated Press. All Rights Reserved.)


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