1975 Annual Report 
NORTHWEST ORIENT AIRLINES 
Celebrating 50 Years of Air Service 
 TH E FOIJNDER of Nort hwest Air- 
lines was Colonel L H Bri ttin (right) 
who also served as general man- 
ager In this 1930 photo, Colonel 
Br1tt1n presents an award to 
Charles 'Speed ' Hofman (left). a 
famous racer and stunt pilot, who 
served as operations manager for 
the airline until his death 1n 1931 
A pictorial review of 
Northwest Orient's 50 years 
Airlines was Croil Hunter, shown here at 
a 1944 ceremony at which the Company 
received the coveted Army-Navy 'E' 
award for its World War II operation of the 
B-24 bomber modification center . 
Hunter served as president of Northwest 
A1rl1nes from 1937 until 1952 and chair- 
man of the board from 1952 until 1965. 
THE FAMOUS STRATOCRUISER provides the background tor the celebration 
of the 25th anniversary of air mail service. The ceremony was held at 
Milwaukee's Mitchell Field in 1951 . THE KOREAN WAR in the 1950's 
found Northwest Airlines playing a 
vital role with its 'air lift' fl ights to 
and from the Far East. Here a group 
of 14 Navy nurses and nine medics 
are starting their trip to Korea via 
NWA and the Great Circle Route. 
NWA'S CURRENT PRESIDENT Donald W. Nyrop 
(left) is pictured with Willi am Allen , then president of 
the Boeing Company, in a 1962 photo taken when 
Northwest Airlines announced the purchase of five 
Boeing 707-320 jet aircraft. 
THE FIRST OF 22 McDonnell Douglas DC 10-40 long-range jets or- 
dered by Northwest Airline s is in the background of this 1972 photo 
taken at the firm 's Long Beach, Cal ifornia plant. NWA president 
Donald W. Nyrop (right) is shown talking with Jackson R. McGowan , 
then president of McDonnell Douglas aircraft division . 
THE FIRST AIR-RAI L SERVICE in the history of transportation was inaugurated by North- 
west Airways, forerunner of Northwest Airl ines. This 1928 photo shows mail being trans- 
ferred from a Rock Island Line train to a waiting NWA ai rplane. 
3 
 From the President 
49th Annual Report to the Shareholders 
1976 marks the 5oth anniversary of 
orthwest Orient Airlines. The 
Company was initially called North- 
west Airways and was founded in 
August 1926 to fly the air mail bet- 
ween Minneapolis / St. Paul and 
Chicago. 
It is very gratifying to report to you 
that orthwest Orient, in its 50th 
year, led all of the U.S. air carriers in 
net earnings , posting a profit of 
$43 ,395,834 or $2.01 per share. This 
is the fourth time in the last eight 
years that Northwest Orient has 
achieved the earnings leadership in 
the industry. This leadership is espe- 
cially significant when consideration 
is given to the fact that Northwest 
Orient is only seventh in size in terms 
of gross revenues. 
Total operating revenues were at 
an all-time high of $800,562,989 in 
1975. This is a 5.5 per cent gain over 
1974. Both passenger and cargo re- 
venues established new highs. 
747Fs Boost Cargo Revenues 
Three Boeing 747F all-cargo aircraft 
were delivered to Northwest Orient 
in July and August of 1975. They 
were placed into operation on a rou- 
ting linking ew Yark, Chicago, Seat- 
tle and Anchorage to Tokyo, Taipei 
and Hong Kong. Domestic service be- 
tween the Twin Cities, Milwaukee, 
Chicago and ew York was also pro- 
vided. 
The $12.1 million increase in 1975 
cargo revenues a 16 per cent jump 
over 1974, can largely be attributed to 
the added revenues produced by 
these new 747F freighters during the 
last half of 1975. Eastbound loads 
from the Orient of over 200 ,000 
pounds - or 100 tons - were com- 
monplace in the B-747F. The $90 
million investment in these 747F air- 
craft is already proving to be profita- 
ble. 
4 
Fleet Modernization Continues 
Delivery of eight new advanced 
model Boeing 727-200s was made to 
Northwest Orient during the last half 
of 1975. Three older Boeing 707s 
were sold in 1975. 
The continuing fleet moderniza- 
tion program of Northwest Orient is 
truly 'big business'. During the last 
21 years, Northwest Orient has 
purchased 216 aircraft and 139 air- 
craft have been sold by the Company. 
That is a total of 3 5 5 aircraft transac- 
tions during this period- or an aver- 
age of seventeen per year. 
Northwest Orient's consistent pro- 
fitability has been, of course, essen- 
tial to the fleet modernization pro- 
gram. Earnings performance over the 
years has enabled Northwest Orient 
to purchase all of the $1.4 billion air- 
craft fleet it presently operates. The 
Company does not have leased air- 
planes in its fleet - the only major 
U.S. airline in that position today. 
Major Labor Agreements 
New collective bargaining agree- 
ments were signed with 11 labor or- 
ganizations in 1975, including the 
four largest groups - the Brother- 
hood of Railway and Airline Clerks 
(BRAC) , the Air Line Pilots Associa- 
tion (ALPA), the International As- 
sociation of Machinists (IAM) and 
the Association of Flight Attendants 
(AFA). 
The new agreements with the 
BRAC and the IAM were reached 
without participation by the ational 
Mediation Board- a noteworthy oc- 
currence in the airline industry, 
which operates under the Railway 
Labor Act. The 33-month agreement 
with the IAM was reached on 
ovember 30, 1975, just 30 days after 
the contract became amendable. 
Affirmative Action Continued 
Improved employment opportunities 
were provided to minorities and 
females both in entry level positions 
and through upward mobility into 
managerial positions as a major goal 
in the continuing corporate Affirma- 
tive Action Plan. 
New Aircraft Ordered 
In looking at Northwest Orient Air- 
lines' fleet requirements for the years 
immediately ahead, it became clear 
that we should move forward in two 
areas. We have done so very recently. 
First, an order has been placed 
with the Boeing Company for a 747 
all-cargo aircraft. Delivery will be in 
June of 1977. This will give us a fleet 
of four 747Fs, with the three pres- 
ently operated in scheduled service, 
and will add to our capacity to handle 
the rapidly growing cargo market. 
Second, the Company has ordered 
four more Advanced Model 
7 2 7-2 00s. The first aircraft will be de- 
livered in June of 1977 and the re- 
maining three aircraft during the 
period October through December of 
19 77. These aircraft will replace 
older 727-lO0s and 707s as they are 
sold. 
The additional capital investment 
is consistent with Northwest Orient's 
belief that fleet superiority represents 
the single biggest marketing advan- 
tage an airline can have in a highly 
competitive industry. 
Employees Benefit from Success 
orthwest Orient's employees con- 
tinued to be major beneficiaries of the 
Company's financial success. 
While corporate net earnings for 
1975 were $21.4 million less than in 
1974, Northwest Orient paid $16.4 
million more in wages and benefits to 
its employees in 1975. The total of 
$222 ,683 755 paid in employee 
wages and benefits in 1975 was the 
single largest item of expense and 
 represented 30 per cent of total 
operating expenses. 
et earnings b wa of contrast 
represented 5.4 per cent of total 
operating re enues in 1975. In 1965 
net earnings were 17 .4 per cent of 
revenues - or more than three times 
greater than in 19 7 5. 
Officer, Director Changes 
M. Joseph Lapensky, vice president- 
finance and treasurer of orthwest 
Orient as elected to the Board of 
Directors on Ma 19 1975. r. 
Lapensky, age 57 has had 30 years of 
experience with the Company and 
has previously served as vice presi- 
dent of economic planning and as 
comptroller. 
Mr. Lapensky succeeds Donald H. 
Hardest , retired vice president- 
finance of orth, est Orient "ho has 
had a trul distinguished career 
spanning 3 2 years with the Com- 
pan . 
John F. Horn has been elected as- 
sistant vice president-properties for 
orth est Orient, replacing Roland 
W. Chambers VI ho retired after 33 
years ith orth, est. 
and as most recentl 
tariffs for the Compan . 
Outlook for 1976 Good 
r. Horn is 34 
director of 
The U.S. econom is demonstrating 
considerably more vitalit in recent 
months than it did during most of 
1975. Airline passenger traffic dur- 
ing the early weeks of 1976 has been 
running ahead of the comparable 
Highlights of 1975 
Total Operating Revenues ....... . . .. .............. . ........ . 
Operating Income .. . . .. . .. . ........ . .......... . .......... . . . 
Net Earnings for the Year ......... . ......... . ............... . 
Per Common Share . . .. . .. . . . . . ........ . ....... . .......... . 
Per Dollar of Revenues .. . .. . ... . .......... . .............. . 
Stockholders' Equity ......... . ............... . .. ........... . 
Per Common Share .... . .. . ............................... . 
Dividends Paid .. . ............. . ........................... . 
Operating Expenses: 
Per Available Ton-Mile ................................... . 
Per Revenue Ton-Mile .................................... . 
Revenue Traffic: 
Passengers Carried ................... ..... ............... . 
Passenger-Miles Flown ................................... . 
Ton-Miles, Mail, Freight and Express ...................... . 
Common Shares at Year End ................................ . 
Employees: 
umber at Year End ... .. ........... .. .. , . . . . .... ......... . 
. Total Wages and Benefits Paid ............................ . 
period in 1975 b an encouraging 
margin. That trend is e pected to 
continue and orthv, est is forecast- 
ing passenger-mile increases of 8 to 
10 per cent for 1976. Cargo traffic 
should shoVI an even larger increase 
- up to 15 to 20 per cent. 
eVI Federal energ legislation 
ill pro ide some much-needed sta- 
bility in the price of jet fuel in 1976. 
As this occurs, orthv est Orient 
should improve its 19 76 earnings 
performance. 
Sincerel 
c:4~71.~ 
(, 
Donald W. rop 
March 15 1976 
1975 1974 
$800,562,989 $758,990,979 
49,699 649 77,785,297 
43 395,834 64,747,629 
2.01 3.00 
5.4,t 8.5q'.: 
623 676,634 589 990,898 
28.87 27.31 
9,710 098 9,721,943 
20.6,t 19.9 
50.2 48.2(/; 
8,865 263 8,948,373 
9,471,282,000 9,173 ,875,000 
481 ,253 000 413 ,415 000 
21 604 136 21,604,136 
11,268 11 ,515 
$222 683 ,755 $206,253,452 
5 
 New 747F freighters help set 
cargo revenue records in 1975 
Sales and 
Marketing 
Highlights 
The growing importance of air 
freight to the U.S. airline industry - 
and to Northwest Orient - was un- 
derscored in 1975. 
Aided by the introduction of three 
Boeing 7 4 7F all cargo aircraft which 
were delivered in July and August of 
1975, Northwest Orient recorded 
cargo revenues of $88.3 million. This 
figure was a $12 .1 million increase 
over 1974 cargo revenues of $76.2 
million and represented a 16 per cent 
gain over prior year cargo revenues. 
Eleven per cent of Northwest Orient's 
operating revenues were derived 
from cargo in 1975. 
A $90 million investment made in 
the three new Boeing 747F aircraft 
was directly responsible for a new 
single month cargo revenue record of 
$10.3 million set in November, 1975. 
Loads from the Orient to the U.S. on 
the huge air freighters in the last 
quarter of 1975 were consistently in 
the order of 100 tons. The 747F air- 
craft also filled a need in the lower 48 
-Alaska market where pipeline activ- 
ity had dramatically increased traffic. 
Introduction of the three 747F all 
cargo c:1.ircraft into Northwest Orient's 
scheduled operations was accom- 
panied by a sophisticated new mar- 
keting plan designed to create new 
air freight traffic. Through use of 
computer programming, a 'total cost' 
comparison of surface shipping ver- 
sus air shipping is performed for po- 
tential customers. In many cases, the 
demonstrated savings that can be 
achieved through use of air shipment 
has provided new business for 
Northwest Orient. 
Passenger Revenues Up 5% 
Passenger revenues of Northwest 
Orient in 1975 increased five per cent 
over 1974, while revenue passenger- 
miles flown in scheduled operations 
rose 3.2 per cent. This performance 
was better than the trunk airline in- 
dustry average in a year when pas- 
senger traffic was virtually in a no- 
growth condition. 
Tour sales to both groups and indi- 
I - 
Northvvests new 747Fs 
More large-cargo capacity 
7 
viduals by Northwest Orient showed 
excellent growth in 1975 with a 20 
per cent increase in activity. New 
'fly/drive' tours featuring rental car 
and family-type motor inn combined 
with air fare proved to be among the 
most popular domestic tour pack- 
ages in 1975. Air/sea cruises out of 
Florida to the Caribbean were ex- 
tremely well received by the public 
and Northwest Orient retained its 
dominant position as the air carrier 
involved with traffic from Chicago 
and the upper midwest. 
Convention Central, the new sales 
division formed in 1975 that pro- 
vides a nation-wide, toll free reserva- 
tion and assistance center for firms 
and individuals arranging conven- 
tions, produced over $9 million in 
revenue- a 56 per cent increase over 
1974. 
than any other U.S. airline! 
@NORTHWEST ORIENT CARGO 
Supercargoblllty 75 
7 
 Sales and 
Marketi ng 
Highlights 
orthwest Orient's advertising em- 
phasis during much of 1975 was on 
savings available to passengers 
through use of new Bicentennial ex- 
cursion fares. This advertising con- 
centrated on newspapers and incor- 
porated flight schedules, but radio 
and television were used as sup- 
plementary media in major on-line 
cities. 
The superiority of orthwest 
Orient's wide-cabin fleet - 15 Boe- 
ing 7 4 7 s and 2 2 McDonnell Douglas 
DC 10-40s - was also given major 
emphasis during the year. By the end 
of the year, 7 5 per cent of all available 
Advertising stresses savings 
and wide cabin jet superiority 
seat-miles flown by orthwest Orient 
were provided in wide-cabin equip- 
ment. The public's stated preference 
for the 'jumbo jet' made this advertis- 
ing approach both obvious and effec- 
tive. 
Cargo, Orient Also Stressed 
The introduction of the three new 
Boeing 7 4 7F all cargo aircraft was 
given extensive advertising support 
in 1975. A larger share of the adver- 
tising budget than ever before was 
devoted to this area and a special 
campaign was directed to senior 
NorttPNestgives 
Yo.tJ the Orient as no 
other anne can. 
1:_,,...,._,.........,.,., ,, ........... 
i:~p::_~ . ~---~~i 
:";::-~ ,. ._:-~ .. 
,~ " I .. ,., 
1, ... ,: ... 
:-~!: "~-"' ..... , ~~~~ 
~NORTHWEST ORIENT 
~l'OlllS 
;;7tJ.:~. :: 
;:,~:-r:~ 
~~~ 
~ ~~-~.:~ .. :4~,, 
1,. - .. 
?::':;.:.,~  
.... . .... ~ 
- 
management using carefully selected 
publications. The primary objective 
was to convert surface shipments 
being made by major companies to 
air shipments on Northwest Orient. 
Another major advertising effort 
was devoted to the trans-Pacific serv- 
ices of Northwest Orient. Within the 
United States, national magazines 
and business publications were used 
to communicate the variety of routes, 
services and tours offered. Within the 
Orient, similar advertising in Hong 
Kong, the Philippines, Taiwan , 
Korea and Japan promoted eastbound 
business. 
The#1Wayto 
$ave a Bundle 
to the ftlidwest. 
hicago: 
save 
$50 
round-trip 
~ ... all wide-cabin jets to Mpls./ St. Paul: To Chicago ... and hatf the world. 
I 
r:=-_ l- 
( 25% savings, too!) 
1~ ... ~J = =-- 
8 
. - I .... ... ~-.::- 
:=. 
1 ~-- :.. 
h-- ~ 
 Dfnc:l lo .._ Yorti In 7U COllllort. The luxuriously roomy cabin of 
lhe Noohwest 7 7 ma.lies a big dillereoce 1n comlm when )'O(J'ra 
flying transpacific. Only Northwesl gives yoo a spi,cious 747 Slratghl 
ttvovgh lo New York - eYefY day. With.no change o f ~ and fUSI 
one stop in Seattle. And dehetous Regal Imperial serv,ce en route. 
Through Ille UJLA. and Canada. Northwest ser,,es 41 c,ues in the 
United Stales and Canada - mcKe lhan any o her airtma from lhe 
Orlflflt In Sea1lle, tor example, we11 grve )'O(J nonstops lo Chtc.lgo, 
Minnea~is/SI. Paul and Washington: D.C. With Northwest, you get 
fhe extra conven 
cnce ol Oymg ll>e same a1rl1ne all the way. 
Sat Nlec:tion I n ~- You can reserve your Northwest 747 seat 
by phone when you book your 01ghl So you you'll gal exactty 
the seat you want Your auporl chec tn will be laslef oo Thal's one 
more way we give you the bes1 ol the East a.nd the bes1 of the Wes! 
Wegiveyou 
the best of both worlds. 
3:45 pm Daity Seattle 
New York 
6:45pm Tue. Anchorage 
Thu. 
Sat Ch cago 
York 
7:20pm Daily Honolulu 
ex.cep1 Los Angeles 
Tue. Minneapolis/ 
St Paul 
9:30pm Daily Honolulu 
San Francisco 
Los Angeles 
Pl~ 5e"l1Ce ID Bosl<Jn M.xl"'SOO. t.l, 
"" lo!oNana and Oatato 
9:00am Seool 7<7 
9:00am Taipei 1 7 
10:30am Seou l 77ll07 
6: Spm Manila 7 7 
o, r ~ De:ro,~ F~ L.ao<lort:.a:e 
~ . l.l ~slSl."~. P- ilade'ohla, 
P ttst,un;.-. Spob,,e.. 
h-rp,.1$1_ '1l W nv;:,r. ::>.C.. 
wrn.,.,.;Gainald.ai 
Se 
--r~. 
E__. rear-) 
Ala""1.. ~ 0e<roo. 
Tv-,pa!S ~ 
~~~-C-4im, =..:i~ 
~~V-A~t.:'tt 
Fo,  ~ see a tra\le ~.t o, cal 
~ U l-7"7  K,.alo 22'2-11'1 , &I 296, 
O<lll 098-r.17 115 
~ 
~ t.::~O)iit .W.-"' ~i;:{Q~ 
9 
 10 
Financial review and management analysis for 1975 
SOURCE AND DISTRIBUTION OF REVENUES 
Percent of Total (Dollars in Millions) 
Source: 
Passenger - Coach 
I 73.2% $586.1 
Passenger - 1st Class 
I 9.2% $ 73.8 
- - - - - - - - - Freight and Express 
- - - - - - - - / 11 .1% $ 88.3 
/ 
Charter and Other 
3.6% $ 29.0 
--Mail 
2.9% $ 23.3 
Applied to 
Distribution: 
/ 
Employees Wages and Benefits 
27.8% $222.7 
Fuel and Oil 
I 23.8% $190.5 
Materials and Services 
I 21.2% $169.8 
Depreciation and Amortization 
12.3% $ 98.9 
- - Earnings and Income Taxes 
5.9% $ 47.1 
Revenues 
Northwest Airlines' total operating revenue in 1975 
reached a record $800,562,989. This compares with the 
previous highs of $758,990,979 in 1974 and 
$584,348,065 in 1973. 
Records were set in all revenue categories and were 
derived from increased traffic and from increased rates 
and fares granted by the Civil Aeronautics Board. The 
system passenger-mile yield increased to 6.94 in 1975 
compared with 6.81ic in 1974 and 5.92 in 1973. The 
revenue ton-mile yields for mail and freight in 1975 were 
24.52 and 22.86, respectively, compared with 23.87 
and 23.99 in 1974 and 20.85 and 21.95 in 1973. 
Cargo revenue in 1975 was $88,307,610 and compares 
with $76,157,097 in 1974 and $55,280,382 in 1973. This 
growth reflects the emphasis the Company is placing on 
broadened and improved air freight services. Revenue 
in 19 7 5 from commercial charter and other income 
amounted to $12,561,055 and from military charters 
$16,457,917. These compare with $12,811,474 and 
$14,510,212 in 1974 and $12,599,537 and $15,917,449 
in 1973, respectively. The Military Airlift Contract ex- 
pires on September 30, 1976 and the Company will seek 
a renewal contract for the Government's 1977 fiscal 
year. 
Fares and Rates 
The Civil Aeronautics Board approved fare and rate 
increases in 1975 which were required as a result of 
inflationary pressures. However, the gain in yields to 
the carrier that should have resulted was largely negated 
by the introduction of a far wider range of domestic 
discount fares introduced by other airlines. To remain 
competitive, Northwest Airlines matched these dis- 
count fares. It appears that further increases will be 
required and the CAB has now approved passenger fare 
increases totaling three per cent which Northwest Air- 
lines will place in effect on April 1, 1976. 
Expenses 
Operating expense in 1975 increased to $750,863,340. 
This compares with $681 ,205 ,682 in 1974 and 
$533,042,805 in 1973. 
The Company is continuing to experience inflation- 
ary trends in most cost areas and is continuing strin- 
gent cost control procedures to minimize the effect. 
Operating expense per available ton-mile increased to 
20.6q; in 1975 compared with 19.9 in 1974 and 15.8 in 
1973. This cost level is one of the lowest in the airline 
industry. 
 Depreciation and amortization expense amounted to 
$98,879,815 in 1975. This compares with $96,212,517 
in 1974 and $87,641,813 in 1973. The increase in 1975 
reflects the addition of new aircraft and the disposal of 
older less productive aircraft. Expense for flying opera- 
tions in 1975 increased to $281 814,492 from 
$243,517 374 in 1974 and $155,066,543 in 1973. The 
increase reflects both the higher cost of labor and the 
higher prices paid for fuel. The chart shown below illus- 
trates the upward trend in fuel costs over the years and 
shows the growing portion of the revenue dollar taken 
by fuel. The chart also shows that higher fuel costs have 
been offset partially by increased productivity - with 
more revenue ton-miles produced per gallon of fuel. 
Earnings and Dividends 
Earnings in 1975 were $43,395,834 or $2.01 per average 
share of common stock outstanding. This compares 
with $64 747,629 or $3.00 per share in 1974. These 
earnings represent the highest in the U.S. airline indus- 
try for 1975. 
Included in earnings are gains from disposals of prop- 
erty, before related income taxes, of $13 616,020 in 
1975. This is down from $39,161,170 in 1974 and 
$18,683,982 in 1973. The disposal gains were from the 
sale of older aircraft and spare parts. Additional sales of 
older aircraft will be made in 1976. 
The Company continued its dividend payment policy 
in 1975 with quarterly payments at an annual rate of 45 
per common share. This is the 21st consecutive year in 
which the Company has paid dividends. The principal 
market on which orthwest Airlines common stock is 
traded is the ew York Stock Exchange. The following 
table shows the sales price ranges for the years 1975 and 
1974, along with the dividends paid per share for the 
same period. 
Sales Price of Dividends 
Common Shares Per Share 
Quarter 1975 1974 1975/1974 
1st 
High 19 253/s 
$.1125 
Low 11% 16% 
2nd 
High 221/s 27 
.1125 
Low 16 22 
3rd 
High 223/s 223/s 
.1125 
Low 171/s 12 
4th 
High 23 18 
.1125 
Low 171/s 10% 
Taxes on Earnings 
Income taxes on earnings in 1975 were $3 ,693 200 and 
compares with $33,631100 in 1974. The current year 
amount consists of the normal tax provision, including 
current and deferred taxes amounting to $22,397 500, 
less investment tax credits of $18,704 300. The invest- 
ment credit includes $17,329,400 generated in the cur- 
rent year primarily from the purchase of 11 airplanes, 
with related spare parts, and $1 ,374,900 from the cur- 
rent year's amortization of the investment tax credits 
from 1968 and prior. 
Investment tax credits which could not be applied to 
income tax returns but which were offset against defer- 
red income taxes totaled $62,158,300 for 1975 and prior 
years. For further tax information see ate D to the 
Financial Statements. 
SYSTEM FUEL ANALYSIS 
1973 
Price Per Gallon ....................... . 12.66 
Gallons Used (000) .. . .... . ........... . . 616,930 
Fuel Cost (000) ....................... . $78,134 
Revenue Ton-Miles (000) ........ . . . .. . . . 1,254,074 
Revenue Ton-Miles Per Gallon ... . ..... . . 2.03 
Total Revenues (000) ........ .. ... . ... . . $584,348 
Fuel Cost % of Revenues .............. . 13.37% 
Year Ended December 
1974 
27.20 
587,302 
$159,753 
1,411 ,862 
2.40 
$758,991 
21 .05% 
1975 
31 .67 
593,821 
$188,049 
1,494,669 
2.52 
$800,563 
23.49% 
% Change 
1975/1974 
+16.4% 
+ 1.1% 
+17.7% 
+ 5.9% 
+ 5.0% 
+ 5.5% 
+ 11 .6% 
11 
 Financial review for 1975 
( continued) 
STOCKHOLDERS' EQUITY 
VS. LONG-TERM DEBT 
Millions of Dollars 
700 
600 
500 
400 
300 
200 
100 
0 
1971 
Cash Flow 
1972 
- - 
EQUITY DEBT 
1973 1974 1975 
Funds generated in the current year from all sources 
amounted to $192,775,616. 
The Company's policy of owning its own equipment, 
rather than leasing, has provided funds through depre- 
ciation which with amortization, amounted to 
$98 879,815 in 1975 and $96 212,517 in 1974. Disposals 
of previously purchased equipment provided addi- 
tional funds of $21 ,739 116 in 1975 and $69,043 853 in 
1974. Additional funds of $32,100 000 were from pres- 
ent long-term debt agreements and were applied to air- 
craft purchase 
12 
Application of funds in 1975 totaled $176,297,301. 
Flight equipment and other property additions ac- 
counted for $165 ,096 ,830 , cash dividends for 
$9,710,098, and other applications, $1 ,490,373. 
Traffic and Services 
The Company's operations in scheduled services in 
1975 showed gains in both traffic and capacity over 
1974. 
Revenue passenger-miles in scheduled s rvice in- 
creased 3.2% and available passenger seat-miles in- 
creased 4.5%. The passenger load factor was 45.29% in 
1975 compared with 45.83% in 1974. The slight decline 
in the passenger load factor reflects the increase in avail- 
able seat-miles from addition of larger, more productive 
aircraft received in 1974 and 1975, even though revenue 
plane-miles flown in 1975 were reduced 1.1% from 
1974. 
Revenue ton-miles were up 7.3% in 1975. This gain 
includes an increase of 3.2% in passenger revenue 
ton-miles and 16.4% increase in cargo and mail ton- 
miles. The gain in cargo ton-miles reflects the accept- 
ance by shippers of new 7 4 7F freighter service offered in 
the last half of 1975. Available ton-miles in scheduled 
service increased 7.0% over the prior year, reflecting 
increased productivity of new aircraft added to the fleet. 
Financial Condition 
The Company continued to improve its financial posi- 
tion in 1975, enhancing its ranking as one of the 
strongest carriers in the airline industry. 
Stockholder equity at December 31 , 19 7 5 was 
$623 ,676,634 compared with $589,990,898 at the end of 
1974. Book value per common share increased to $28.87 
in 1975 from $27.31 a year ago. Outstanding debt at year 
end was $271,900,000 compared with $229,000,000 in 
1974. Outstanding debt is 43.6% of stockholder equity, 
up from 38.8% in 1974. This favorable debt to equity 
ratio continues to be the lowest of the U. S. trunkline 
carriers. 
Previous financial arrangements and internal cash 
flow provided funds for all financial needs in 1975, 
including purchase of three Boeing 747F freighters and 
eight B-727-200's and related spare parts. Details of the 
Company's long-term debt arrangements are described 
in ote B to the Financial Statements. 
 Statement of Earnings 
NORTHWEST AIRLINES, INC. AND SUBSIDIARIES 
Operating Revenues 
Passenger ...... . . . ..... . ..... . ........ .. ... . .. . . . . . . . . . 
Cargo .............................................. . . . . 
Mail ........................ .... ............... . ...... . 
Charter and other transportation ....... . ......... . . . .... . 
Mutual Aid Agreement ........................... . . . . . . . 
Nontransport ............... . ....... . . . ...... . . . ..... . . . 
Operating Expenses 
Flying operations .. . ... . ....... . ........... . ....... . ... . 
Maintenance ............... . ........... . ...... . ... . . . . . 
Passenger service ................... . .. . ............... . 
Aircraft and traffic servicing .. . .. . ... . . . . .... .. . ... . .. . . . 
Reservations, sales and advertising ..... .. .... . ... . . . ... . . 
Administrative and general .. . ....... . ..... . ...... .. .. .. . 
Depreciation and amortization . .......... . ...... . . . . . . . . . 
Other Income and (Deductions) 
Interest on long-term debt, net of capitalized 
interest of $1,657,011 (1974 - $2,429,994) - Note A 
Disposals of property ................ . ......... . ... . . . . . 
Other ............. . ................ . . . ............. . . . . 
Earnings Before Taxes .... . .... . . . .. . . . .......... .... .... . 
Taxes on Earnings, including deferred taxes 
and investment credit - Note D .... . . . ... . . . . . ... . . .. .. . 
Net Earnings for the Year ..... . . . . . . . .. . .... . . .... . ... . . . . 
Average shares of Common Stock outstanding 
during the year . .... .. ... . . . . . . ....... . . . . . ...... . . . . . . . 
Earnings per share of Common Stock . . . . ................ . . . 
See notes to financial statements. 
Year Ended December 31 
1975 
$659,849,499 
88,307,610 
23 ,279,860 
29,018,972 
5,340,153) 
5,447,201 
800,562,989 
281 ,814,492 
77,880,613 
69,248,885 
118,521,564 
83,789,048 
20,728,923 
98,879,815 
750,863 ,340 
49,699,649 
16,119,659) 
13,616,020 
106,976) 
2,610 ,615) 
47,089,034 
3,693 ,200 
$ 43 ,395,834 
21 ,604,136 
$2 .01 
1974 
$628,488,358 
76,157,097 
22 ,911 ,103 
27,321,686 
1,529,882) 
5,642,617 
758,990,979 
243,517,374 
71 ,355,832 
69,146,474 
110,776,802 
70,255,493 
19,941 ,190 
96,212 ,517 
681 ,205,682 
77,785,297 
19,553,814) 
39,161,1 70 
986,076 
20,593 ,432 
98,378,729 
33,631 ,100 
$ 64,74 7,629 
21,604,136 
$3. 00 
13 
 14 
Statement of Financial Position 
NORTHWEST AIRLINES, INC. AND SUBSIDIARIES 
ASSETS 
Current Assets 
Cash and short-term investments ........................ . 
Accounts receivable, less allowance of $1 ,100,000 
(1974 - $950,000) .......... . ...... . .. . .............. . 
Recoverable income tax ................................ . 
Flight equipment spare parts at average cost, 
less allowances for depreciation of $11,224,428 
(1974 - $9,262,733) . . .... . .. . ....................... . 
Maintenance and operating supplies at average cost ...... . 
Prepaid expenses ...................................... . 
Total Current Assets 
Other Assets 
Property and Equipment 
Flight equipment at cost ............................ . .. . 
Less allowances for depreciation ........................ . 
Advance payments on new flight equipment - Note E .... 
Other property and equipment at cost ................... . 
Less allowances for depreciation .......... . . . ...... . .... . 
Deferred Charges 
Training and development costs . .. .. .. ..... ... ... .. . . . . . 
Rentals .... . . . .............. . . . .. . . .. .......... . .... . . . 
December 31 
1975 1974 
$ 49,162,168 $ 40,070,177 
72,492,128 59,363,639 
6,040,800 
24,040,408 21 ,147,524 
6,731 ,613 6,038,606 
2,626,259 2,190,900 
161,093,376 128,810,846 
10,302,405 8,783,172 
1,420,670,459 1,282,556,385 
443 ,608,223 374,621,819 
977,062,236 907,934,566 
6,641 ,028 
977,062,236 914,575,594 
118,929,206 112,129,133 
58,926,846 51 ,359,908 
60,002 ,360 60,769,225 
1,037,064,596 975,344,819 
1,259,587 2,759,311 
5,426,160 5,455,020 
6,685 ,747 8,214,331 
$1 ,215,146,1 24 $1 ,121,153,168 
 LIABILITIES AND STOCKHOLDERS' EQUITY 
Current Liabilities 
Accounts payable and accrued expenses .......... . ...... . 
Employee compensation ......... . ........ ......... .. .. . 
Unredeemed ticket liability .............. .. ............. . 
Income taxes . ......................................... . 
Current maturities of long-term debt ...... . . . ..... .. . . .. . 
Total Current Liabilities 
Long-Term Debt - Note B 
Deferred Credits and Other Liabilities 
Income taxes - Note D .... . ........................... . 
Other ......... . ...  .... . ........... .. ......... . . . ...... . 
Stockholders' Equity- Note C 
Common Stock $1 .25 par value; authorized 40,000,000 
shares; issued and outstanding 21 ,604,136 shares . ..... . 
Capital surplus ... . ..... . ..................... . ...... . . . 
Retained earnings ..... . . . ... . ..................... . ... . 
Commitments - Note E 
Leases - Note F 
Contingencies - Note G 
See notes to financial statements. 
December 31 
$ 
1975 
100,844 423 
27 451 65 7 
18,224,695 
1454,110 
25,900,000 
173,874 885 
246,000 000 
165,026,200 
6,568,405 
171,594,605 
27,005,170 
124,140,834 
472,530,630 
623 ,676,634 
$1 ,215,146,124 
$ 
1974 
93 ,483 ,456 
27,195,640 
13,410,376 
8,881,198 
15,100,000 
158,070,670 
213,900,000 
157,294,500 
1,897,100 
159,191,600 
27,005,170 
124,140,834 
438,844,894 
589,990,898 
$1 ,121,153,168 
15 
 Statement of Changes in Financial Position 
NORTHWEST AIRLINES, INC. AND SUBSIDIARIES 
Year Ended December 31 
1975 1974 
Source of Funds 
Net earnings . ........ . ... .. ............... . ........... . $ 43 ,395,834 $ 64,747,629 
Items not requiring current funds: 
Depreciation and amortization: 
Aircraft and related flight equipment ............ . ... . 88,304,178 86,341,066 
Other . . . . . . . . .... . . ..... ... . .... . . . ....... . .... . .. . 10,575,637 9,871,451 
Deferred income taxes ..... . .. .. .. . .. . ............... . 7,731 ,700 28,865,400 
Deferred investment credit . . .. - 
. ....... . .............. . 1,374,900) 2,184,800) 
Total from Operations 148,632,449 187,640,746 
Issuance of long-term debt - Note B .......... . ..... . ... . 32 ,100,000 
Disposals of operating property - book value . .......... . 8,123,096 29,882,683 
Other .. . .. ... . . . ... . ...... . .. . .... .. .... .. .. .. ........ . 3,920,071 
Total of Sources 192,775,616 217,523,429 
Application of Funds 
Flight equipment and other property additions .... . .... . . . 165,096,830 136,518,651 
Advance deposits on aircraft . . .. . .. .. ........... . ...... . 6,600,528 
Other assets and deferred charges ................... .. . . . 1,490,373 5,078,687 
Cash dividends . . . . ...... ... . ..... .. .......... . ........ . 9,710,098 9,721 ,943 
Reduction of long-term debt .... . .......... . . . . . ........ . 70,100,000 
Other ..... . ........................................... . 1,686,871 
Total of Applications 176,297,301 229,706,680 
Increase (Decrease) in Working Capital ... . ........... . ... . $ 16,478,315 ($ 12,183,251) 
Changes in working capital consist of: 
Increase (decrease) in current assets: 
Cash and short-term investments .. . . .. . ............... . $ 9,091 ,991 $ 2,250,294 
Receivables ... . ......... . .................. . ...... . . . 13,128,489 4,259,910 
Recoverable income taxes .. .... .. . . . .... .. ........... . 6,040,800 
Inventories .. . . . . ... . . . ....... . ......... .. ...... .. ... . 3,585,891 6,175,834 
Prepaid expenses ... . ..... . ....... . . ... . . ..... . ...... . 435 ,359 954,830) 
32 ,282,530 11,731 ,208 
Increase (decrease) in current liabilities: 
Accounts payable and accrued expenses . ..... . . ... .... . 7,360,967 72 ,481 
Other accrued liabilities . . ... .. .... . ... .. ........ . . .. . . 7,171,071) 9,581 ,754 
Unredeemed ticket liability ..... . . . . .. . ... ... . ...... . . . 4,814,319 2,160,224 
Current maturities of long-term debt .. . ... . . .. . . .. .. . . . 10,800,000 12,100,000 
15,804,215 23,914,459 
Increase (decrease) in working capital .. . . . ... . . .... . . . . . . . $ 16,478,315 ($ 12,183,251) 
See notes to financial statements. 
16 
 Statement of Stockholders' Equity 
NORTHWEST AIRLINES, INC. AND SUBSIDIARIES 
Common Stock Capital Retained 
Shares 
Balance December 31, 1973 ..... . . . ... . 21,604,136 
Net earnings for 197 4 ............... . 
Cash dividends - $.45 a share .. . .. . . 
Balance December 31, 1974 ... . ...... . . 21,604,136 
Net earnings for 1975 ............... . 
Cash dividends - $.45 a share ...... . 
Balance December 31, 1975 ........... . 21 ,604,136 
See notes to financial statements. 
APPLICATION OF INVESTMENT TAX CREDIT 
Reflected in 
Period Available* Net Earningst 
1962-1974 ... . .... $106,102,300 $104,205,200 
1975 . . . . . . . . . . . . . 17,329,400 18,704,300 
Total ....... .. . .. . $123,431,700 $122,909,500 
To Net Earnings . . . 122,909,500  I 
To Be Amortized .. $ 522,200 
* Investment credits not applied on tax returns but 
offset against deferred taxes through 1975, amount 
to $62,158,300. See Note D to financial statements. 
t Income benefits of investment credit generated in 
1962-68 are amortized over an eight year period. 
The flow-through method of accounting was 
adopted for investment credit generated after 1968 
and the income benefits have been reflected in the 
year generated. 
Amount Surplus Earnings 
$27,005,170 $124,140,834 $383,819,208 
64,747,629 
9,721 ,943) 
27,005,170 124,140,834 438,844,894 
43,395,834 
( 9,710,098) 
$27,005,170 $124,140,834 $472,530,630 
NORTHWEST AIRLINES FLEET 
December 31 
Aircraft Type 1974 1975 
B727 & B727C-100 .. . . 32 32 
B727-200 . . .. ..... . . . 23 31 
B707-320B & 320C . .. . 13 10 
DCl0-40 . .. ........ . . 22 22 
B747 . . .. . . . . .. . . .. . . 15 15 
B747F ... . .. . .. . . .. . . 3 
Total . . . . . ... .. ..... . 105 113 
NOTE: No aircraft on order at Dec. 31, 1975 
17 
 18 
Notes to Financial Statements 
NORTHWEST AIRLlNES, INC. AND SUBSIDIARIES 
Years Ended December 31, 1975 and 1974 
Note A - Accounting Policies 
A summary of certain accounting policies of the Company which have been consistently 
followed in preparing the accompanying financial statements is set forth below: 
Consolidation 
The consolidated financial statements include the accounts of the Company and its wholly- 
owned subsidiaries after elimination of intercompany accounts and transactions. 
Foreign Currency Translation 
Inventory and property and equipment are translated at rates of exchange in effect when 
acquired. All other monetary assets and liabilities are translated at year-end rates of exchange. 
Revenue and expense accounts are translated at a weighted average of exchange rates which 
were in effect during the year, except for depreciation which is translated at the rates of exchange 
in effect when the property and equipment were acquired. Exchange adjustments are charged or 
credited to income currently and are not material. 
Flight Equipment and Property 
Provision for depreciation is computed by the straight line method over the estimated useful 
lives of the assets. The calculation assumes fifteen year lives and 10% residual values for 747 and 
DC-10 aircraft and ten years and 15% residual values for all other aircraft. Useful lives of 
buildings vary from 5-30 years and other equipment 4-10 years. 
Allowances for depreciation of flight equipment spare parts, rotables and assemblies are pro- 
vided by the straight line method at rates which allocate the cost of these assets, less residual 
value, over the estimated useful lives of the related aircraft. 
The Company charges to operating expense when incurred, all expenditures for maintenance 
and repairs and minor renewals and betterments. Expenditures which materially increase values 
or extend useful lives are generally capitalized. Carrying amounts of assets sold or otherwise 
disposed of are eliminated from the accounts in the year of disposal and the resulting gain or loss 
reflected in operations. 
Interest on the Company's long-term debt relating to deposits advanced to manufacturers prior to 
the delivery of new aircraft is capitalized as cost of the assets and is amortized over the useful life 
of the aircraft. If the Company did not follow a policy of capitalizing interest, net earnings would 
have been increased by $322,000 ($.01 a share) in 1975 and decreased $11,500 ($.00 a share) in 
1974. 
Training and Development Costs 
The Company defers preoperating expenses of new aircraft fleets (principally training) and 
amortizes such costs over future periods to be benefited, generally five years. 
Pension Plans 
The Company has several pension plans covering substantially all of its employees. The policy is 
to fund pension costs accrued which includes the amortization of prior service costs over a 
period of thirty years. 
Taxes on Earnings 
Taxes are provided for all items included in the statement of earnings regardless of the years 
when such items are reported for tax purposes. Deferred income taxes result primarily from 
 Notes to Financial Statements 
Note A - Accounting Policies (Continued) 
using for tax purposes accelerated depreciation methods and deducting currently the interest 
capitalized as cost of aircraft. 
Since 1969, the Company has used the flow-through method of accounting for the investment 
credit. Investment credits not applied on tax returns are offset against deferred income taxes to 
the extent they are applicable to deferred taxes becoming payable in the investment credit 
carryover periods. No change has been made in accounting for investment credits arising prior to 
1969 which are amortized over eight years from the dates the credits arose. 
Earned Revenue 
Passenger and cargo sales are recognized as earned revenue when the transportation is provided. 
Earnings Per Share 
Earnings per share are based on the average number of shares of Common Stock outstanding 
during each year. Shares issuable upon exercise of stock options are excluded from the computa- 
tion since their effect is not significant. 
Note B - Long-Term Debt 
Revolving Credit Agreement with banks provides for revolving 
credit of $200 million reducing $15.9 million quarterly be- 
ginning July 1, 1976 and terminates April 1, 1979. Interest on 
funds borrowed is at% above prime commercial loan rate 
prior to July 1, 1976 and% above thereafter. As of December 
31, 1975 the agreement makes available an additional $61 
million for working capital and other purposes .... . ..... . 
Term Credit with banks is payable $12.5 million quarterly be- 
ginning April 1, 1981 and terminates January 1, 1983. Interest 
is paid based on a formula related to prime commercial loan 
rates; however, total interest paid shall not exceed 7%% per 
annum on borrowings over the term of the loan. Current pay- 
ments in excess of that rate are classified as other assets ... 
Note purchase agreements with twelve insurance companies are 
payable $3 ,000,000 annually and terminate on October 1, 
1978. Interest is at 6% per annum. Certain optional prepay- 
ments at par are permitted. The agreements contain certain 
other provisions with respect to redemption as a whole, but 
not from borrowed funds, at premiums not to exceed 2% .. 
Credit agreements with aircraft and aircraft engine manufactur- 
ers financing purchases from those manufacturers through 
the issuance of five-year notes ..... . ................. . . . . 
Less amounts due within one year included in current liabilities 
December 31 
1975 1974 
$139,000,000 
100,000,000 
10,000,000 
22,900,000 
271 ,900,000 
25,900,000 
$246,000,000 
$ 81 ,000,000 
100,000,000 
13,000,000 
35,000,000 
229,000,000 
15,100,000 
$213,900,000 
The Company had complied with the covenants of the debt agreements at the end of both years. 
At December 31, 1975 approximately $11,400,000 ofretained earnings were not restricted under 
terms of the long-term debt agreements. 
Long-term debt requires payments of $37,400,000-1977, $67,600,000-1978, $41,000,000- 
1979, none in 1980 and $100,000,000 thereafter through 1983. 
19 
 20 
Notes to Financial Statements 
Note C - Stockholders' Equity 
Shares 
Cumulative Preferred Stock, $25 par value: 1975 
Authorized ....... . . . ........ . ... .. ... . . .. .. . ........... 1,000,000 
Issued December 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None 
Common Stock options for officers and employees 
at prices which were not less than 100% of 
market at date of grant are as follows: 
Shares 
Outstanding January 1, 1974 ............. . ............ . 49,900 
Lapsed . . ....... .... . . .. .. .................. . ...... . (13,200) 
Outstanding December 31, 1974 . . ......... . .. . . . . . ... . 36,700 
Granted ..... .. .. . . . ....... . .... . ... . . . ........... . . 45,300 
Lapsed ... . .... . . . . . ................ . ............ . . . ( 1,000) 
Outstanding December 31 , 1975 . . .... . ............... . 81,000 
Options exercisable: 
At December 31, 1974 ........ . .. . ........ . .......... . 18,350 
At December 31, 1975 ... .. .. . ... . . . ................ . 35,700 
1974 
1,000,000 
None 
Price Per Share 
$20.06/32.3 75 
20.06/32.375 
20.06 
19.13 
20.06 
19.13/20.06 
20.06 
20.06 
Shares available for future stock options and other plans were 329,136 and 373,436 at December 
31, 1975 and 1974, respectively, of which 69,000 and 113,300, respectively, were available for 
additional grants under the 1973 Stock Option Plan. 
Note D -Taxes on Earnings 
The provision for taxes on earnings consists of the following: 
Year Ended December 31 
1975 1974 
Current: 
Operating loss carryback for tax purposes .......... . ... . . ($12,224,500) $ 
Provision for the year ........ . . . .......... . ............ . 11,235,000 
Reduction of refund for limitation of 
investment credits applied in prior years .............. . 6,183,700 
Investment credit flow-through .. . . . . ... .. ... . . .. . .. .. .. . 4,992,600) 
6,040,800) 6,242,400 
Deferred: 
Provision . .. ... .. . .. . ... . .... . ... . ... .. .. . . . .......... . 34,622,000 36,215,400 
Investment credit: 
Flow-through . . . . . .. . .. ... . . ... ....... . . . ........... . 17,329,400) 6,641 ,900) 
Arising from operating loss carryback ........ . .... . ... . 6,183,700) 
11,108,900 29,573,500 
Deferred investment credit being amortized 
over eight years . .. ... ... . ....... .... . . ........ . . . ... . . . ( 1,374,900) ( 2,184,800) 
$ 3,693 ,200 $33,631 ,100 
 Notes to Financial Statements 
Note D - Taxes on Earnings (Continued) 
Investment credits not applied on tax returns but offset against deferred income taxes at 
December 31, 1975 will expire $8,919,800 - 1978, $4,042,500 - 1979, $20,177, 300 - 1980, 
$11,685,300 - 1981, and $17,333,400 - 1982. 
Exclusive of investment credit, the Company's effective tax rate is 47.6% and 48.2% for 1975 and 
1974, respectively, as compared to the federal statutory rate of 48%. 
The Company's federal income tax returns have been examined and settled through 1973. 
Note E - Commitments 
At December 31 , 1975 the Company had no commitments to purchase aircraft or engines. 
Note F - Leases 
The Company does not lease any aircraft or related flight equipment. Sublease income and 
contingent rentals are not material. Total rental expense follows: 
Year Ended December 31 
1975 1974 
Air terminal and main base facilities 
( financing leases) ....... . ... . ... . .. . ... .... ....... . . . .. . $ 9,272,000 
5,026,000 
$14,298,000 
$ 8,593,000 
4,817,000 
$13 ,410,000 
Ticket offices and miscellaneous equipment ..... .. . . ...... . 
Future minimum rental commitments at December 31 , 1975 for all non-cancellable leases 
follows: 
Air Terminal 
and Main Base 
Facilities 
1976 . ................ . .......... ... .. $ 9,188,000 
1977 
1978 
1979 
1980 
Five years 1981-85 .... . ... .. . . ..... . .. . 
Five years 1986-90 ......... . . . .. . . .. . . 
Five years 1991-95 . . ... .. ... . . . .. . ... . . 
Remainder .. . . . . ... . .. . .. .. . . .. . . . . . . . 
8,924,000 
8,885,000 
8,677,000 
8,399,000 
40,965,000 
29,741 ,000 
17,675 ,000 
21 ,568,000 
$154,022,000 
Ticket 
Offices and 
Miscellaneous 
Equipment 
$1 ,441 ,000 
1,330,000 
1,171,000 
844,000 
566,000 
1,280,000 
273,000 
$6,905,000 
Total 
$ 10,629,000 
10,254,000 
10,056,000 
9,521 ,000 
8,965,000 
42 ,245,000 
30,014,000 
17,675 ,000 
21 ,568,000 
$160,927,000 
21 
 22 
Notes to Financial Statements 
Note F - Leases (Continued) 
The estimated present values of the net fixed minimum rental commitments for all non- 
cancellable financing leases (terminal facilities and other buildings) were $79,674,000 at De- 
cember 31, 1975 and $79,641 ,000 at December 31, 1974. The present values were computed after 
reducing total rental commitments by estimated amounts applicable to the lessors' payments of 
taxes, insurance, maintenance and other operating costs. The weighted average interest rate 
used was 7.16% for 1975 and 6.54% for 1974. The range of interest rates was 2.8% to 10.5% for 
1975 and 2.8% to 10.0% for 1974. The impact on net earnings if financing leases had been 
capitalized was not material for either year. 
Note G - Contingencies 
The Company is a defendant in a class action brought by certain of its female cabin attendants 
alleging violations of certain provisions of the Equal Pay Act of 1963 and the Civil Rights Act of 
1964. The trial judge held that provisions of both statutes had been violated by the Company. The 
Company has appealed that decision. Counsel for the Company have advised that neither the 
timing of the final outcome nor the consequences of the lawsuit are presently determinable. 
However, Company management does not believe any resulting liability will have a material 
effect on the Company's financial position. 
The Company is a defendant, along with other airlines, in a number of legal actions alleging 
noise and air pollution resulting from aircraft operations around certain airports, excessive air 
fares and violation of anti-trust laws. Company management does not believe that these actions 
will result in a material liability to the Company. 
Note H - Pension Plans 
The total pension expense was $19,782,163 (1974 - $17,460,589). As of the most recent 
valuation date the market value of the assets in all pension funds was approximately 
$93,911 ,000, and the actuarially computed value of vested benefits exceeded applicable assets 
by approximately $7,383,000 at cost and $33,032,000 at market. The value of vested benefits was 
increased during the year as a result of increased benefits provided under certain new labor 
contracts (no material effect on net earnings). The effect on the Company's future pension 
expense of the Employee Retirement Income Security Act of 1974 has not been determined but, 
in the opinion of Company management based upon a report from its consulting actuaries, the 
effect is not expected to be material. Certain changes in actuarial assumptions were made during 
1975 which had no material effect on pension expense. 
 Accountants' Report 
To the Stockholders and Board of Directors 
Northwest Air lines Inc. 
Saint Paul Minnesota 
We have examined the statement of financial position of Northwest Airlines, Inc. and subsidiaries as of December 
31, 1975, and December 31, 1974, and the related statements of earnings, stockholders' equity and changes in 
financial position for the years then ended. Our examinations were made in accordance with generall accepted 
auditing standards and, accordingly, included such tests of the accounting records and such other auditing 
procedures as we considered necessary in the circumstances. 
In our opinion, the financial statements referred to above present fairly the consolidated financial position of 
Northwest Airlines, Inc. and subsidiaries at December 31. 1975, and December 31 , 1974 and the consolidated 
results of their operations and changes in their financial position for the years then ended, in conformity with 
generally accepted accounting principles applied on a consistent basis. 
Saint Paul, Minnesota 
February 16, 1976 
Notice to Stockholders 
Any person who either owns, as of December 31 of the year preceding issuance of this annual report or subse- 
quently acquires, beneficially or as trustee, more than 5 per centum, in the aggregate, of any class of the capital stock 
or capital of the air carrier, shall file with the Civil Aeronautics Board (CAB) a report containing the information 
required by Section 245.12 of the CAB's Economic Regulations on or before April 1, as to capital stock or capital 
owned as of December 31 of the preceding year, and, in the case of stock subsequently acquired, a report under 
Section 245.13 of such Economic Regulations, within 10 days after such acquisition, unless such person has 
otherwise filed with the CAB a report covering such acquisition or ownership. 
A bank or broker which holds, as trustee, more than 5 per centum of any class of the capital stock or capital of an air. 
carrier to the extent that it holds shares on the last day of any quarter of a calendar year, shall file with the CAB, 
within 30 days after the end of the quarter, a report in accordance with the provisions of Section 245.14 of the CAB's 
Economic Regulations. Any person required to report under the CAB's regulations who grants a security interest in 
more than 5 per centum of any class of the capital stock or capital of the air carrier shall, within 30 days after 
granting such security interest, file with the CAB a report containing the information required in Section 245.1 5 of 
the CAB's Economic Regulations. 
Any stockholder who believes that he may be required to file such a report may obtain further information by 
writing to the Director, Bureau of Operating Rights, Civil Aeronautics Board, Washington, D. C. 20428. 
23 
 10 Year Summary 
NORTHWEST AIRLINES, INC. AND SUBSIDIARIES 
(Dollars in thousands excepl per share figures) 1975 1974 1973 1972t 1971t 1970t 1969 1968 1967 1966 
Operating Revenues 
$ 
Passenger . . .... ' 
................ . .... . ............ 659,849 $ 628,488 $ 476,794 $ 277,891 $ 331,966 $ 260.335 $ 350,504 $ 301,277 $ 275,873 $ 216,239 
Cargo ............................................. 88,308 76,157 55,280 34,694 39,641 30,053 51.006 43,902 38,118 29,515 
Mail . . ... . ................. . .............. . ....... 23,280 22,911 18,415 13,309 19,443 18,958 29,386 28.605 26,898 22,557 
Charter and other transportation .................... 29,019 27,322 28,517 20,009 31,588 20,800 35,090 41,060 41,799 39,205 
Mutual aid agreement .... . ........... .. ............ (5,340) (1,530) (2,692) 43,629 (462) 46,325 (509) 2,491 
on transport . . . . .................................. 5,447 5,643 8,034 2.969 3,343 2,569 2,461 1,446 1,291 1,312 
Total Operating Revenues $ 800,563 $ 758,991 
Operating Expenses 
$ 584,348  $ 392,501 $ 425,519 $ 379,040 $ 467,938 $ 416,290 $ 383,979 $ 311,319 
Depreciation and amortization ......... . ............ $ 98,880 $ 96,213 $ 87,642 $ 81.054 $ 77,245 $ 69,173 $ 60,833 $ 49,817 $ 41,252 $ 33.195 
Other . .............. . ...... . ............. . ....... . 651,983 584,993 445,401 296,348 330,108 258,784 324,979 268,529 229,969 177,469 
Total Operating Expenses $ 750,863 $ 681,206 $ 533,043 $ 377,402 $ 407,353 $ 327,957 $ 385,812 $ 318,346 $ 271,221 $ 210,664 
Operating income ....................... . ............ $ 49,700 $ 77,785 $ 51,305 $ 15,099 $ 18,166 $ 51,083 $ 82.126 $ 97,944 $ 112,758 $ 100,655 
Interest expense on long-term debt .. . . . ........... . ... (16,120) (19,554) (14,758) (8 ,356} (13,051) (6,296} (2,334} (3 ,894) (3,725) (3,268} 
Other income and (deductions) - net ................. 13,509 40,148 19,133 10,510 6,685 (227) 1,181 674 1,334 2,025 
Earnings before taxes ...... . ........ . .......... . ...... $ 47,089 $ 98,379 $ 55,680 $ 17,253 $ 11,800 $ 44,560 $ 80,973 $ 94,724 $ 110,367 $ 99,412 
Income taxes . ....... . ........ . ................... . .. 3,693 33,631 3,830 ' (429) (9,561) 121 29,507 44,673 51,651 46.276 
Net Earnings f) 1 
       
$ 43,396 $ 64,748 $ 51,850 $ 17,682 $ 21,361 $ 44,439 $ 51,466 $ 50,051 $ 58,716 $ 53,136 
Earnings per average share as reported each year 1 
'. 
11 
. $ 2.01 $ 3.00 $ 2.40 $ .83 $ 1.01 $ 2.11 $ 2.55 $ 5.47 $ 6.42 $ 5.81 
Cash dividends .. ............. . . . _ 
. .. ............ . .... 9,710 9,722 9,722 9,620 9,518 9.465 9.117 7,320 6,405 5,490 
Dividends per share as paid each year .. . .... . ..... . ... .45 .45 .45 .45 .45 .45 .45 .80 .70 .60 
Stockholders' equity ... ..... . .. . . . . . .. . ...... . . .. .... 623,677 589,991 534,965 492,837 477,054 465,210 426 ,797 306.717 263,986 212,727 
umber of shares outstanding at end of year ........... 21,604,136 21,604,136 21,604,136 21.604,136 21,149,756 21,149,756 20,914,272 9,149,628 9,149.626 9,149,626 
Book value per share at end of year 121  . ..  .  $ 28.87 $ 27.31 $ 24.76 $ 22.81 $ 22.56 $ 22.00 $ 20.41 $ 33.52 $ 28.85 $ 23.25 
Recomputed per share figures after stock splits 1 
 
31 
.  .   
Earnings per average share 13 
_1  .      .  . . . .         
2.01 3.00 2.40 .83 1.01 2.11 2.55 2.74 3.21 2.90 
Dividends per share 1 
.31 
....  .  ...... . .. .45 .45 .45 .45 .45 .45 .45 .40 .35 .30 
Book value per share at end of year r:'.1       .. 28.87 27.31 24.76 22.81 22.56 22.00 20.41 16.76 14.43 11.62 
Assets and Long-Term Debt 
Flight property at cost .. . .. ...... . . . . . ..... . .... . . .. . . $ 1,420,670 $ 1,282,556 $1,216,632 $ 1,008.041 $ 1.012,568 $ 929,181 $ 697.938 $ 582,646 $ 467,859 $ 401,476 
Flight property at net book value .. ......... ...... . .... 977,062 907,935 861,231 682,020 709,433 668,129 492 ,241 424,522 346,029 311,803 
Total assets . . .............. .. .................... . ... 1,215,146 1,121,153 1,085,632 920.418 944,302 923,126 7 42. 732 627.538 481,206 422,040 
Long-term debt .... . ... ...... .... . ......... .. ........ 246,000 213,900 284,000 208,000 252,500 260,915 112.000 160.000 85,000 96,000 
Unit Expenses 
Per available ton-mile ...... . . .. . ....... .. .. . ... .. .. 20.6 19.9 15.8 16.9 14.5 18.0t 15.2, 14.6. 14.5 15.6t 
Per revenue ton-mile .... ... .... . .... ........ ... . ... 50.2 48.2 42.5(1', 49.6t 42.1 43.5t 34.5. 30.8 30.3 30.1(/, 
Per cent of operating revenues . . .... ..... . .. .. ...... 93.8% 89.8% 91.20/o 96.20/o 95.70/o 86.50/o 82.40/o 76. 5/o 70.60/o 67 . 70/o 
Statistics - Scheduled Services 
Revenue pl ane-miles (000) ......... . ...... . ......... 104,104 105,295 108,853 79,025 100,992 83,177 123,966 107,646 93,395 67,780 
Available seat-miles (000) .......... . . . .. . .... . .... . 20,910,966 20,016,107 19,593,379 12,963.054 15,614,614 10,234,060 13,504,111 10,840.758 9,198,150 6,773,257 
Revenue passenger-miles (000) .. . .. . ... . . . . . .. . .... . 9,471,282 9,173,875 8,007,850 4.565 ,618 5,553,043 4,506,256 6,208,725 5,458,128 4,901,520 3,699,851 
Passenger load fac tor ..... . .. ... .. . . . .. . .... ... . .... 45.3% 45.8% 40.90/o 35.20/o 35.60/o 44.00/o 46.00/o 50.3/n 53.30/o 54 .60/o 
Revenue passengers carried . ... .. .... . .... . ..... . . . . 8,865,263 8,948,373 7,987,299 5,150,636 6,089,273 4,682.812 7,517.780 7,173.805 6.489.295 4,963,275 
Freight and express ton-miles (000) . . .. . .... . ... . .. . 386,309 317,437 251,865 150,973 161,345 110,215 198,494 169.416 141.175 108,914 
Total reve nue ton-miles (000) . .. . .... .. ... .... . ..... 1,428,381 1,330,803 1,140,983 672,035 813,403 655,339 942,050 836.085 709,165 533,556 
Statistics - Total Operations 
Revenue plane-miles (000) ..... . . .... . ..... .. . . .... . 107,721 110,519 115,726 84,098 110,045 89,938 135,563 121.077 106.197 77,715 
Available ton-miles (000) ..... . .. . ........ . ....... . . 3,642,650 3,431,038 3,370,694 2,236,069 2,806,407 1,819,439 2,535,137 2,186.234 1,864,128 1,348,983 
t trikes adver ely affected 1970 and 1972 and L 
he trike recovery period of 1971. 
(II See Financial Review pages 10 through 12 for Ma nage ment 's Di scussion a nd An alysis of the Summary of Operation s. 
121 Per sharr figures reflect the increase in oulsta nd ing sha res res ultin g from stock issues in 1969, 1970 and 1972. 
ri1The stock was spliL "two-for-one" in 1966 a nd 1969. The recomputations in thi s section are shown to provide 
comparabilitv on an adju ted basis a nd fo llow the fo rm recommend ed by the Accounting Princi ples Board . These 
figures, of cour e. do not re fl ect the way the corporatio n was operated. 
24 25 
 Operating 
Highlights 
The substantial growth in air freight 
volume, sparked by the introduction 
of the three new Boeing 747F all- 
cargo aircraft, was aided by major 
improvements in Northwest Orient's 
physical plant and new equipment 
for cargo handling. 
Orders were placed in 1975 for ten 
Cochran Western CL-7 5 5 main deck 
loaders , for example. This is the 
largest air cargo loader available 
today with a 55,000 pound loading 
capacity. It can service the main deck 
of the Boeing 747F and McDonnell 
Douglas DClOF as well as the lower 
decks of the passenger version of all 
three 'jumbo jets' (747, DC 10 and L 
26 
New cargo buildings constructed, 
support facilities also increased 
1011) and the main deck of the DC 8 
and 707 air freighters. 
New 10 foot containers measuring 
88 inches in width, 96 inches in 
height and 125 inches in length were 
ordered by Northwest Orient. Both 
aluminum and fiberglass versions 
were ordered for service testing. The 
model containers are of the type that 
can be accommodated on narrow bed 
trucks. 
New cargo buildings were con- 
structed and occupied by Northwest 
Orient in Anchorage and Atlanta, 
while major expansions and modifi- 
cations occurred at New York's Ken- 
nedy airport and at Chicago O'Hare. 
A Burroughs programmable cal- 
culator was acquired by Northwest 
Orient and placed in service during 
1975. This 'mini-computer' gener- 
ates comparison data for customers to 
facilitate decisions on air movement 
at bulk rates versus containerized 
rates. It also provides information 
about density, stacking arrangement 
and weight per pound to minimize 
shipping costs by NWA customers. 
Engineering programs 
generate savings 
The management concept of being 
self-supporting whenever poss.ible in 
the area of maintenance and en- 
gineering continues to provide major 
savings. 
The investment of $4,000 in fab- 
ricating a sonic nozzle air flow bench 
at the Twin Cities main overhaul base 
has produced a one year saving of 
$651,840, for example. The new 
technique provided the capability of 
air flow checking of engines used on 
the 747 and DC 10-40 aircraft as part 
of the overhaul process and also per- 
mitted salvage of air distribution tub- 
ing with the resulting saving men- 
tioned above. 
Standardization of the JT8 engines 
used on Boeing 727-200 aircraft was 
undertaken by NWA's maintenance 
department during 1975. This will 
permit use of the standardized JT8 on 
both the early model 727-200's and 
on the recently delivered advanced 
model 727-200's. 
Another example of cost savings is 
the introduction of electrostatic paint 
application equipment late in 1975. 
Based on the electrical principle that 
unlike charges attract, the system re- 
sults in a superior paint coating with 
very substantial savings in paint 
material costs. An important by- 
 product of the system's use is the im- 
provement in environment due to an 
almost total lack of overs pray of paint 
and solvents into the working area. 
Food service 
is big business 
In 1975, Northwest Orient's flight 
kitchens in the Twin Cities, Seattle 
and Anchorage produced a total of 
3 911 ,766 in-flight meals. The Twin 
Cities facility alone produced 
1 ,486,824 meals during the year. 
In addition to handling in-flight 
catering for the majority of its own 
flights , Northwest Orient's food serv- 
ice division generates substantial re- 
venue for the company from other re- 
lated activities. The Anchorage flight 
kitchen services other airlines and 
brought in revenues of $2 ,941 ,871 
from its outside catering activities in 
1975. 
Montana Enterprises , an WA 
subsidiary in Billings, Montana, pro- 
duced sales of $1 ,221 ,403 through 
in-flight catering and operation of the 
food service facilities in the airport 
terminal building. 
27 
 Route 
Case 
Investigations 
Trans Atlantic Route Proceeding 
In this case, orthwest Orient has re- 
quested that it be designated as the 
U.S. flag North Country specialist, 
replacing Pan American at the cities 
on the route proposed. The Bureau of 
Operating Rights of the CAB has re- 
commended that Northwest Orient 
be granted authority betw een the 
U.S. and the Scandinavian countries. 
orthwest Orient's proposed sum- 
mer service patterns are depicted 
graphically here: 
Chicago-New Orleans Nonstop Case 
orthwest Orient seeks authoriza- 
tion to provide nonstop service be- 
tween Chicago and ew Orleans. 
Direct service to 1 
ew Orleans would 
also be provided from the Twin Cities 
and Mih aukee via Chicago. 
28 
Northwest Orient awaits final 
decision by CAB on six applications 
A total of six route case investiga- 
tions involving Northwest Orient 
presently are under active considera- 
tion by the Civil Aeronautics Board. 
Northwest Orient has not received 
any new domestic or international 
route authority since August, 1970 
when it was given nonstop rights 
from the Twin Cities and Milwaukee 
to Boston. Permission to reinstate 
service to Edmonton, Alberta , 
 
Seattle 
Los Angeles 
Detroit New York 
Twin Cities Chicago 
Washington, D.C. New York 
Canada was given to Northwest 
Orient in 1974 following the signing 
of a new bilateral air rights agreement 
by the U.S. and Canadian govern- 
ments. 
With the announced end of its un- 
official route award 'moratorium', it 
is expected that the Ci vH Aeronautics 
Board will be making final decisions 
on most - if not all - of the follow- 
ing route case matters in 1976: 
Copenh89'11 
Copenhagen 
Copenhagen 
New York Glasgow Oslo/Bergen 
Twin Cities New York 
Boston 
:c==========;:J 
Detroit-Boston Nonstop Route Case 
orthwest Orient seeks new author- 
ity between Detroit and Boston, both 
cities already served by the airline. 
Copenhagen 
Chicago-Montreal Case 
A new route linking Chicago and 
Montreal is sought. Direct service 
from Honolulu, Seattle, Portland, 
Twin Cities and Milwaukee (via 
Chicago) would also be planned. 
 Peking 
Nanking 
Shangh 
Harbin 
- - - - ROUTES OPERATED 
--------- CHINESE MAINLAND ROUTES SUSPENDED 
Cities Served by Northwest Orient 
DOMESTIC Chicago Helena Minneapolis/St. Paul 
Anchorage Cleveland Hilo Missoula 
Atlanta Detroit Honolulu New York 
Billings Edmonton Jamesto~ Newark 
Bismarck/Mandan Fargo/Moorhead Los Angeles/Long Beach/ Ontario Philadelphia 
Boston Ft. Lauderdale/Hollywood Madison Pittsburgh 
Bozeman Grand Forks 
Butte Great Falls 
Midwest-Atlanta Competitive 
Service Case 
orthwest Orient has requested CAB 
authorization to provide service be- 
tween Atlanta and Cleveland and be- 
tween Atlanta and Detroit. All three 
cities are. presently served by A. 
Miami Portland 
Milwaukee Rochester 
Service to Saipan Case 
Authority to serve Saipan from the 
terminal points of Japan and Guam 
has been requested. orthwest 
Orient is one of three carriers seeking 
this route. The case has recentl been 
returned to the CAB by the President 
for further proceedings. 
San Francisco/Oakland/San Jose 
Seattle/Tacoma 
Spokane 
Tampa/St. Petersburg/Clearwater 
Washington, D. C./Baltimore 
Winnipeg 
ORIENT 
Hong Kong 
Manila 
Okinawa 
Osaka 
Seoul 
Taipei 
Tokyo 
2 
 Fleet 
Highlights 
Three Boeing 747F's 
All cargo aircraft capable of carrying 
a structural payload of 262,900 pounds. 
Fifteen Boeing 747's 
Range of 5,850 miles with 369 passengers. 
Twenty-two McDonnell Douglas DC 10-40's 
Range of 5,100 miles with 236 passengers. 
Ten Boeing 707-320's 
Range of 5,620 miles with 156 passengers. 
+++++++++++++ 
++++++++++++ 
++++++++++++ 
++++++++++ 
+++++++++ 
+++++++ 
Sixty-three Boeing 727's 
Thirt -t,, o 727-100 ' - Range of 2,380 miles with 93 passengers. 
Thirt) -one 727-200' - Range of 1 760 miles with 128 passengers. 
30 
 . ' 
Directors*  
James H. Binger 
Honeywell, Inc., 
Chairman of the Executive Committee, 
Minneapolis, Minnesota 
(Manufacturer of automation system s) 
Hadley Case 
President, Case, Pomeroy & Company, Inc. 
New York, New York 
(Investments) 
Melvin R. Laird 
Senior Counsellor, Reader's Digest, Inc. 
Washington, D.C. 
(Magazine publishing) 
M. Joseph Lapensky 
Vice President-Finance and Treasurer 
Northwest Airlines, Inc. 
St. Paul, Minnesota 
. Officers* 
Donald W. Nyrop 
President 
James A. Abbott 
Vice President-Law 
Clayton R. Brandt 
Vice President-Purchasing and Stores 
Robert W. Campbell 
Vice President-Budgets 
J. William Campion 
Vice President-Regulatory Proceedings 
Robert A. Ebert 
Vice President-Personnel 
Roy K. Erickson 
Vice President-Public Relations 
A.E. Floan 
Secretary 
Co-Registrars and Transfer Agents: 
Northwestern ational Bank, 
Minneapolis, Minnesota 
orth western Trust Co., 
New York, ew York 
Stock Listed: 
Common Stock listed on ew York Stock 
Exchange, Pacific Coast Stock Exchange 
and Midwest Stock Exchange 
General Offices: 
Minneapolis-St. Paul International Airport 
St. Paul, Minnesota 551 11 
Malcolm S. Mackay 
President, Foothills Company 
Roscoe, Montana 
(Oil and gas properties) 
Donald G. McNeely 
President, Space Center, Inc. 
St. Paul, Minnesota 
(Real estate) 
Donald W. Nyrop 
President, Northwest Airlines, Inc. 
St. Paul, Minnesota 
C. Frank Reavis 
Partner, Reavis and McGrath 
New York, ew York 
(Attorneys) 
Robert J. Glischinski 
Vice President-Communications 
and Computer Services 
Benjamin G. Griggs, Jr. 
Vice President-Assistant 
to the President 
John F. Horn 
Assistant Vice President-Properties 
William E. Huskins, Jr. 
Vice President-Maintenance 
and Engineering 
Reginald C. Jenkins 
Vice President-Orient Region 
M. Joseph Lapensky 
Vice President-Finance and Treasurer 
Description of Business 
Albert G. Redpath 
Drexel, Burnham & Co. 
ew York, New York 
(In vestment bankers) 
Lyman E. Wakefield, Jr. 
Resource Trust Co., 
Chairman of the Board 
Minneapolis, Minnesota 
(In vestment advisors) 
Ronald Mc Vickar 
Vice President 
Bryan G. Moon 
Vice President-Advertising 
Robert J. Phillips 
Vice President-Comptroller 
C.L. Stewart 
Vice President-Transportation 
Services 
Robert J. Wright 
Vice President-Sales 
* A s of March 15, 1976 
Northwest Airlines, Inc., incorporated in the State of Minnesota, is a scheduled air 
carrier engaged in commercial transportation of passengers, mail and property, and 
operates under certificates of public convenience and necessity issued by the Civil 
Aeronautics Board. The present route system covers approximately 24,200 route 
miles and serves directly cities in 17 states of the 48 contiguous states, as well as 
Alaska , Hawaii, the District of Columbia, Canada and countries in Asia, including 
Japan, Korea, Taiwan, Hong Kong and the Philippines. Authorizations to serve 
Shanghai, Peking and other points in continental China remain in effect although 
presently i nopera ti ve. 
31