Northwest Airlines

Northwest and JetBlue lost less money in the fourth quarter than expected, even in the face of high fuel prices, and JetBlue shares jumped more than 20% on the possibility of a passenger-sharing deal with Lufthansa. It would have been a break-even quarter for Northwest Airlines Corp. if not for a loss on its stake in Pinnacle Airlines. Discounter JetBlue Airways Corp.

Delta and Northwest are close to a deal that would create the world's largest airline and jump start what is expected to be the industry's biggest consolidation wave in decades. The long-awaited pact between Delta Air Lines Inc., the nation's third-largest airline, and No. 5 Northwest Airlines Corp. could come as early as today if there is an agreement by the pilots union for a common contract.

Pilots for Delta and Northwest were still negotiating the terms of a labor contract late Wednesday, delaying plans to sign a deal that would create the world's largest airline. Directors for Delta Air Lines Inc., the nation's third-largest carrier, and No. 5 Northwest Airlines Corp. had been expected to vote Wednesday on a combination if a pilot deal had been reached. But a spokesman for Northwest's chapter of the Air Line Pilots Assn.

Delta Air Lines Inc., in talks to combine with Northwest Airlines Corp., said Tuesday that several conditions must be met before it agrees to a merger, and no potential transaction qualifies "to date." The Delta name and Atlanta headquarters must be preserved, and workers' seniority and pensions must be protected, Chief Executive Richard Anderson and Chief Financial Officer Ed Bastian told employees.

Delta Air Lines Inc. is considering a proposal from Northwest Airlines Corp. to push ahead on a merger even without a labor agreement between their pilot unions, people familiar with the matter said Friday. The new approach may include a smaller pay package for pilots, said the people, who declined to be identified because the talks were private. The carriers must reassess how their tie-up would work as soaring jet-fuel costs and lower demand have wiped out projected profits, the people said.

The record number of delayed and canceled flights in 2007 can partly be blamed on airlines knowingly scheduling more flights than airports had the capacity to handle, according to a report released Wednesday by the Department of Transportation's inspector general. As an example, Inspector General Calvin L. Scovel III told a House aviation subcommittee that Northwest Airlines alone had scheduled 56 departures in a 15-minute window at the Minneapolis-St.

Delta Air Lines Inc. and its pilots agreed in principle Friday on a contract that would clear the way for a merger with Northwest Airlines Corp. to create the world's largest carrier, people familiar with the talks said. An accord would raise pilots' pay and give them an equity stake in the combined airline, which would keep Delta's name and Atlanta headquarters, said the sources, who requested anonymity. Some terms are still being negotiated, two of the people said.

Delta and Northwest could announce a combination as early as Tuesday that would create the world's biggest airline, three people familiar with the talks said Sunday, though pilot contract issues still loomed and there was no guarantee the deal would move ahead. The people, who spoke on condition of anonymity because of the sensitivity of the situation, said officials were mobilizing for an announcement provided the boards of the two companies give final approval to a deal.

Delta and Northwest, seeking to combine to create the world's largest airline, posted losses Wednesday totaling $10.5 billion for the first quarter due to high fuel prices and write-downs of their companies' value. The red ink put into focus the enormousness of the challenge the airline industry faces to become profitable again amid nearly $120-a-barrel oil -- even with the benefits that consolidation can bring. "All airlines are in the same boat," Calyon Securities analyst Ray Neidl said.

Delta Air Lines Inc. and Northwest Airlines Corp. shareholders gave the go-ahead Thursday to a combination that would create the world's biggest carrier, deciding that in their volatile industry they liked their chances better together than on their own. The stock-swap deal announced April 14 still requires Justice Department approval. One other potential hurdle is a federal lawsuit seeking to block the deal that is set for trial Nov. 5 in San Francisco.