1058033--2/29/2008--NORTHWEST_AIRLINES

related topics

{cost, regulation, environmental}

{operation, natural, condition}

{system, service, information}

{debt, indebtedness, cash}

{operation, international, foreign}

{loss, insurance, financial}

{condition, economic, financial}

{interest, director, officer}

{cost, operation, labor}

{personnel, key, retain}

Risk Factors Related to Northwest and the Airline Industry We are vulnerable to increases in aircraft fuel costs. The airline industry is sensitive to global events. Our actual financial results may vary significantly from the projections filed with the Bankruptcy Court. Because our consolidated financial statements following our emergence from bankruptcy reflect fresh-start reporting adjustments, financial information in our financial statements following emergence will not be comparable to NWA Corp. s financial information from periods prior to emergence from bankruptcy. Additional terrorist attacks or the fear of such attacks, even if not made directly on the airline industry, could negatively affect the Company and the airline industry. Additional security requirements may increase the Company s costs and decrease its traffic. Union disputes, employee strikes and other labor-related disruptions may adversely affect the Company s operations. The loss of skilled employees upon whom the Company depends to operate its business or the inability to attract additional qualified personnel could adversely affect its results of operations. The Company s degree of leverage may limit its financial and operating activities. The covenants in the Company s Bank Credit Facility may restrict the Company s activities and require satisfaction of certain financial tests. Changes in government regulations could increase our operating costs and limit our ability to conduct our business. Our insurance costs have increased substantially and further increases could harm our business. We are exposed to foreign currency exchange rate fluctuations. We are exposed to changes in interest rates. The Company relies heavily on automated systems to operate its business and any significant failure of these systems could harm its business. The Company s business relies extensively on third-party providers. Failure of these parties to perform as expected, or unexpected interruptions in the Company s relationships with these providers or their provision of services to the Company, could have an adverse effect on its financial condition and results of operations.

Full 10-K form ▸

1058033--2/29/2008--NORTHWEST_AIRLINES_CORP