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Eagan, Minn. – Northwest Airlines, the last U.S. carrier in bankruptcy, left court protection Thursday after reducing operating costs close to the lowest in the industry.
Northwest used its 20 months in Chapter 11 to carve $2.4 billion, or 20 percent, from its annual expenses. It slashed labor spending by $1.4 billion, or 40 percent. The fifth-largest U.S. airline also reorganized regional flights, trimmed its fleet by 13 percent and replaced older, fuel-guzzling planes.
“They were pretty aggressive,” said William Warlick, a Fitch Inc. analyst in Chicago.
