Loss Worsens for Northwest

In the latest quarter, Northwest's fuel expense came close to matching the $918 million it paid for salaries, wages and benefits. Rival Continental Airlines (CAL Quote) said last week it paid more for fuel last quarter than for labor.

Northwest's high fuel expense obscured improving revenue trends in its mainline operations, which exclude small regional feeder flights. Passenger traffic grew 3.5% year over year, while Northwest kept capacity growth to 1.5%. That combination enabled the airline to fill an average of 84.6% of its seats, up from 82.9% a year before.

Meanwhile, the airline's yield, which essentially measures average fares, rose 4.4%. The combination of higher yield and fuller planes boosted unit revenue, measured in revenue per available seat mile, by 6.5%.

Northwest shares fell a penny to 58 cents Friday. The stock continues to trade, but it will likely be rendered worthless if and when Northwest emerges from bankruptcy. In almost all cases, bankrupt airlines cancel existing shares when they exit Chapter 11 and issue new stock to pay unsecured creditors and other stakeholders.