Northwest Orient Airlines Annual Report 1983 BUILDING AND EXPANDING 
FOR FUTURE GROWTH 
  Northwest Orient Airlines Highlights 1 
1983 1982* 198 1 
Total Operating Revenue $2,196,036,000 1,877 ,568,000 $1,854,290,000 
Operating Income (Lo s) 68,886,000 (8,375 ,000) 1,747 ,000 
et Earning for the Year 50,073,000 5,019 ,000 10,460,000 
Per Common Share 2.19 .23 .48 
Per Dollar of Revenue 2.3 .3 .6 
Stockholder ' Equity $854,189,000 820,605 ,000 $832 510,000 
Per Common Share 39.33 37 .85 38.43 
Dividend Paid 17,367,000 17,332,000 17,326,000 
Operating Expenses: 
Per Available Ton-Mile 40.5 40.7 41 .0 
Per Revenue Ton-Mile 76.0 80.3 83.9 
Revenue Traffic: 
Pa enger Carried 12,718,000 11 ,356,000 11 145 000 
Pa enger-Miles Flown 17,711,929,000 15 675 ,194 000 14,25 l 932,000 
Ton-Miles, Mail and Freight 979,753,000 739,955 ,000 761 ,622,000 
Common Shares at Year End 21,716,000 21 678 000 21 ,661 ,000 
Employee : 
umber at Year End 14,187 13 ,754 13 ,096 
Total Wages and Benefit Paid $569,535,000 478 953 ,000 444,054,000 
*Operating results were affected by a major strike which extended from May 22, 1982 to June 17, 1982 . 
Operating Revenue 
(Million of Dollar ) 
2.400 
2.000 
1.600 
1.200 
800 
400 
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Scheduled Revenue Pa enger - 
Mile (millions) 
I .000 
15.000 
12.000 
9.000 
6.000 
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Mile (million ) 
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 From the Chairman and Chief Executive Officer 
Th 57th Annual R port to Shareholder  
In 1983 orthwe t Airline po ted its tronge t financial re ult ince 1979 with 
net earning of 50 million or 2.19 per hare, up from 5 .0 million or 23 cents 
per har in 1982. Our trong performance wa highlighted by everal key 
de elopment : 
 Total operating revenue urpa ed $2 billion for the fir t time in our 
hi tory, increa ing 17 percent to $2.2 billion. 
 Freight revenue increa ed sharply to 290 million, up 41 percent 
from 1982. 
 Operating income wa $69 million, and with total depreciation at 147 
million, our ca h operating income amounted to $216 million. 
 orthwe t wa one of the few airline to avoid intere t expense in 1983. 
By inve ting the proceed from our 100 million debenture i ued in February 
1983 , our investment income exceeded net interest expense by $4.4 million - 
an out tanding performance in an indu try addled by heavy debt. 
 Our ability to grow and prosper in a highly competitive environment wa 
evidenced by a 13 percent increase in pas enger traffic and by a 60 percent 
sy temwide passenger load factor, our highest since 1956. 
Fleet Expansion 
All of the aircraft in our fleet are owned and paid for. Late in 1983, we 
announced plans to purcha e 20 new-generation Boeing 757 passenger aircraft, 
valued at 800 million including engine and pare parts. The 757 are scheduled 
for deli very at the rate of 10 in 1985 and 10 in 1986. These fuel-efficient planes, 
equipped with the new Pratt & Whitney 2037 engine, will enhance our 
competitive capabilitie and permit profitable expan ion of our dome tic route 
y tern . 
In September, we received delivery of a new Boeing 747-200 freighter, our 
ixth, and placed it in ervice in the growing Pacific air freight market. In 
addition, to increa e our international capacity we purcha ed four new long- 
range Boeing 747-200 pa senger aircraft for delivery in Spring 1984, thu 
olidifying our po ition as owner of the largest full-size 747 fleet among all 
U.S. airlines. 
Thi aggressive fleet expansion program will be financed largely with 
internally-generated fund . By year-end, nearly $100 million wa on deposit 
with manufacturers in addition to the more than 100 million in ca h and short- 
term investments that had been set aside for acquisitions. Some borrowing will 
be nece sary to augment ca h flow from depreciation and earnings to make the 
final delivery payments. However, thi will not unduly tax our financial strength, 
and Northwe t' debt/equity ratio will remain among the mo t con ervative 
in the industry. 
Routes and Traffic 
Route expan ion effort in 1983 were focused primarily on our growing 
international system. After adding new route and trengthening others, 
2 
 Northwest was providing 56 passenger and cargo roundtrips per week to the Far 
East over seven U.S. gateway tracks. Advance schedule indicate that we will 
operate 70 round trips a week in the peak season of 1984. This will include new 
service to the People's Republic of China and Kuala Lumpur, Malay ia, in 
addition to further development of our new San Franci co-Tokyo nonstop route. 
European traffic also was strong in 1983 as we increased Atlantic roundtrip 
crossings to 31 per week. In 1984, we will be erving nine European cities with 
the addition of Frankfurt and Dublin. On the dome tic ide we further advanced 
our position in the Sun Belt by introducing ervice to Tue on in December. 
Organization 
We took steps to strengthen North we t's top management team in 1983 . 
Steven G. Rothmeier was elected Pre ident and Chief Operating Officer in 
September. At the same time, Jame A. Abbott was named Senior Vice President 
and General Counsel and elected to the Board of Director . To broaden the 
management base further, Benjamin G. Griggs , Jr. wa elected Executive Vice 
President--Operations, with responsibility for Flight Operation , Maintenance and 
Engineering, and Ground Operations. In addition, Brent J. Ba kfield was named 
Vice President-In-Flight Services; Phillip R. Go ard was elected Vice Pre ident- 
Ground Services; and Walter H. Pemberton became Vice Pre ident- 
Communications and Computer Services. 
The Year Ahead 
Looking ahead, we are fully prepared to meet the challenges of a 
deregulated airline industry and compete succes fully with large and small 
carriers alike. Our strong financial position will serve us well in any operating 
environment, and we will continue to build and emphasize our unique blend of a 
strong domestic route system welded to a two-ocean international network. 
A special word of thanks is due our more than 14,000 skilled and dedicated 
employees worldwide, whose hard work made 1983 a year of improved service 
and earnings. We also appreciate the continued support of our many 
shareholders, and we look forward to reporting another succe ful year in 1984. 
Sincerely 
~.~~ 
M.J. Lapensky 
Chairman of the Board and Chief Executive Officer 
February 21 , 1984 
We posted 
our strongest 
operating 
results since 
1979. 
3 
 Northwest announced the purchase of 20 Boeing 757 passenger aircraft for delivery in 1985 
and 1986. These fuel-efficient planes will-be financed primarily with internally-generated funds. 
4 
 The Industry's Most Advanced and Efficient Fleet 
To maximize efficiency and permit substantial expansion of our dome tic 
route system , Northwe ti purcha ing 20 Boeing 757 aircraft, powered 
by Pratt & Whitney 2037 engines . Thi new-generation aircraft purcha e 
is valued at $800 million, the single largest fleet buy in Northwest's 
hi tory. Ten will be delivered in 1985 and the remaining ten in 1986. 
The fuel-efficient 757 will accommodate 185 pa enger in a fir t- 
clas and economy-cl a configuration . The aircraft will enhance our 
ability to compete with new, low-co t carrier , and the 757 are equipped 
to easily accommodate Northwe t' dome tic non top flights up to 3,000 
miles. 
In other fleet ex pan ion development in 1983 , orthwe t al o 
purcha ed: 
 Four long-range Boeing 747-200 pa enger aircraft that will help 
meet the needs of Northwe t' rapidly growing international 
system. Delivery is scheduled for spring 1984. 
 One Boeing 747-200F all-cargo aircraft delivered in September, 
1983, and now in service on tran pacific route . 
 Two Boeing 727-200 aircraft that are currently erving 
dome tic routes. 
At the time of delivery of the four new 747-200 pa enger aircraft by 
summer 1984, Northwest will own and operate 34 Boeing 747 the 
largest full- ize 747 fleet of any major U.S. airline. 
A of summer, 1984, Northwe t's total fleet will consist of: 
Boeing 727-100 9 
Boeing 727-200 56 
McDonnell Douglas DC 10-40 19 
Boeing 747 r 28 
Boeing 747 Freighter 6 
Total Fleet 118 
5 
Operating a 
fully-owned and 
debt-free fleet 
of the most 
advanced 
aircraft in the 
world. 
 Frankfurt, the second largest gateway in Europe, will become the ninth city on 
Northwest's Atlantic route system in Spring of 1984. 6 
 An Expanding Worldwide Route System 
Continuing our program of selective, trategic route addition rthwe t 
strengthened its worldwide route system in 1983 by expanding in a 
number of key markets. Spanning the globe from Hamburg to Hong 
Kong, Northwest serves 77 cities in 28 tate and 14 countrie . 
The majority of the 1983 route additions involved our international 
system, reflecting the strong growth in overseas traffic. Of pecial 
significance was the new and expanded service to the Orient. The pa t 
year marked Northwest's 36th year of service in the Pacific. During the 
peak summer months , we were providing 56 pas enger and cargo round 
trips each week from the gateways of New York, Chicago, Lo Angele 
San Francisco, Seattle, Anchorage and Honolulu. Based on advance 
schedules, Northwest will be providing ten round trips per day in 
passenger and cargo service across the Pacific in 1984 - more than any 
other transpacific airline. 
Route system highlights in the Orient during 1983 included: 
 New nonstop servic_ 
e between Chicago and Seoul, Korea. 
 New nonstop service between San Francisco and Tokyo. 
 New single-plane service between Minneapolis/St. Paul and Tokyo. 
 More nonstops between New York and Tokyo - from two flights 
each week in 1982 to five in 1983. 
In Spring of 1984, Northwest will inaugurate twice-weekly service 
between the U.S. and the People's Republic of China with flights serving 
Shanghai. 
In another significant route addition in 1984, Northwest will be 
introducing direct service from San Francisco via Tokyo to the major 
business center of Kuala Lumpur, Maylasia. 
Northwest's European route system also recorded an increase in 
service in 1983, rising to 31 transatlantic crossings every week. In Spring 
1984, we will inaugurate service to Frankfurt, West Germany, and Dublin , 
Ireland. Dublin will bring to nine the number of cities served by 
Northwest in its Atlantic system. 
On the domestic side, Northwest further bolstered its po ition in the 
Sun Belt. Direct service was introduced between Tucson and the Twin 
Cities, Milwaukee and Phoenix. Tucson became the fifteenth Sun Belt 
city served by Northwest. 
Photo courtesy of the German 
National Tourist Office 
7 
Spanning the 
globe from 
Hamburg to 
Hong Kong, 
Northwest's 
route system 
serves 77 cities 
in 28 states and 
14 countries. 
 Northwest owns and operates six B747F all-cargo freighters, the most among all U.S. 
combination carriers. Northwest is the largest U.S. trunk carrier in the U.S./Orient air freight market. 
8 
 Among the World's Largest Air Freight Operations 
orthwe t' air freight operation are the econd large t among all . S. 
carrier and fifth largest in the world. In term of ton-mile flo n 
orthwe t i the large t freight carrier among all . S. combination 
carrier . Total cargo ton-miles were up 32 percent in 1983 and total 
revenue climbed 30 percent for the ear. 
orthwest focu ed it 1983 air freight effort on the rapidl gro mg 
tran pacific market . Cargo ton-mile increa ed nearl 50 percent on our 
Pacific route re ulting in an all-time orth e t record for total freight 
and mail catTied to the Orient. 
orthwest' ixth 747F all-cargo aircraft joined our fr ight r fle t la t 
year. This permitted three additional tran pacific freighter flight each 
week and added 20 percent more capacit to our freighter fleet. Follo ing 
delivery of this ixth plane orth e t operated 13 Pacific 747F flight 
each week during the peak ea on. 
orthwe t freighter er ice through the San Franci co gate a 
urpa sed Lo Angele cargo traffic in it fir t ear of operation. The 
combined Lo Angele /San Franci co freighter er ice ha trongl 
positioned u in the key We t Coast-Far Ea t market and pro ides a olid 
foundation for future growth. 
Air freight charter operation generated ignificant re enue in 1983. 
A major contribution wa 14 li e tock charter from Minneapoli /St. Paul 
to Seoul Korea. A record 1 598 cattle weighing nearl 850,000 pound 
were transported for breeding purpose . 
The inauguration of orthwe t Cargo Control Center greatl 
improved freight load on both freighters and widebody pa enger 
aircraft. This fully automated control ystem keep track of orth 
fleet of cargo containers and closely matche freight with aircraft capacity. 
This helped increase air freight revenue particularly from widebody 
passenger flight which were u ed increa ingly to upplement our 
freighter fleet. ,. 
9 
Strongly 
positioned in 
West Coast- 
Far East air 
cargo markets, 
providing 
a solid 
foundation for 
future growth. 
 Construction was started in 1983 on Northwest's new $5.6 million, 60,000-square-foot cargo 
facility at the Bird Island Flats air cargo complex at Boston's Logan International Airport. 
OF 
NORTHWEST ORIENT 
CARGO FACILITY 
APRIL 198 4 
10 
 Expanding Terminal Facilities for Future Growth 
orthwe t committed more than $25 million in 1983 on new, expanded 
and upgraded pas enger and air freight facilitie at terminal throughout 
the U.S. Keeping our ground facilitie modem efficient and capable of 
handling increa ing volume of pa enger and cargo i a critically 
important aspect of our long-term growth plan . Some of the larger 
projects in 1983 included: 
New York. Northwe t opened new pas enger facilitie at LaGuardia 
Airport, providing much greater convenien e for our ew York 
cu tomer . In addition, work wa tarted on a 7. 7 million building 
expansion at our John F. Kennedy cargo facility which will expand 
orthwe ts JFK freight handling capacity by 150 percent. 
San Francisco. New pa enger facilitie were opened at San 
Francisco International Airport, de igned to handle dome tic and 
international flight . We also acquired a 79 000 quare-foot cargo facility 
which include two freighter po ition and a mechanized cargo handling 
y tern. 
Los Angeles. Work commenced on a 7.9 million , 60 000- quare- 
foot freight facility at Lo Angele International Airport the country 
econd largest cargo market and one of orthwe t mo t important 
gateway to and from the Far Ea t. 
Ft. M)ers. orthwest opened new terminal facilitie with one 
widebody gate at Southwest Regional Airport, which i de igned to 
handle all Northwe t traffic for the southwe tern corner of Florida. 
Honolulu. A new 2 million cargo facility became operational, 
including refrigerated torage capacity for 70 000 pound of peri hable 
good . 
Phoenix. orthwe t moved into a new pas enger terminal that will 
provide greater cu tomer convenience and opportunity for future 
expan 10n. 
Minneapolis/St. Paul. Work ha tarted on a connector between 
orthwest's two primary passenger concour e , which will reduce the 
connecting times for pas engers between flight . In addition , the 
refurbi hing of all Top Flight Club wa begun with work on the lounge 
at Minneapolis/St. Paul. In 1984 work also will begin on a major 
expan ion of gate facilities on the Gold Concourse. 
11 
Keeping ground 
facilities 
modern and 
efficient is 
critically 
important to 
our long-term 
growth plans. 
 Regal Imperial Service was introduced on all of Northwest's international flights in 1983. This 
service features gourmet cuisine, fine wi'!es, Royal Doulton China and other deluxe amenities. 12 
 A Commitment to Strategic Planning and Marketing 
Northwest's growth and profitability are being fueled by our ongoing 
commitment to strategic long-range planning and aggressive marketing. 
By developing and implementing a host of innovative marketing 
strategies, we are continuously bolstering Northwest's position in our 
chosen markets , domestic and overseas. 
Northwest introduced Regal Imperial Service on all international 
flights in 1983 to increase the volume of high-yield first and executive 
class fares. Regal Imperial has done just that. This all-new service 
includes designer linen, fine wines, choice of gourmet entrees served on 
custom-:designed Royal Daulton China and a variety of other amenities. 
Unique to Northwest, our Deferred Payment plan for winter vacation 
travel to Sun Belt cities was another example of targeted, innovative 
marketing. Under this program, passengers guarantee their winter air fares 
in advance with credit cards - interest free - and make no payments 
until after the trip. Still another effective promotional program for the 
business traveler was the unveiling of Northwest's third Free Flight Plan 
one of the most successful in the industry. 
More than 16,000 U.S. travel agents can electronically access 
Northwest's fares and schedules. In addition to our own modem, high 
speed POLARIS reservation system, Northwest is a co-host in three other 
large reservations systems: SABRE, APOLLO and MARS. Northwest 
also participates in the main automated reservation systems serving 
Canada, England, Ireland, Scotland and Hong Kong. 
Northwest has taken steps to work much more closely with 
commuter airlines to develop interline feed from cities not served by us. 
This cooperation includes joint fares, joint advertising and marketing, and 
in some cases , including commuter airlines in our computerized 
reservation system, POLARIS. 
Northwest has aggressively marketed its tour and leisure and 
convention ana sales businesses in 1983. As a result, both divisions 
reported strong revenue gains for the year. 
13 
Functioning as 
an aggressive 
marketing 
organization, 
committed to 
strategic long- 
term planning. 
 Northwest Orient Airlines Route System 14  Existing cities served by Northwest. 
New routes and cities being added in 1984. 
15 
/ 
 Management's Discussion And Analysis 16 
Operating Revenues 
Operating revenue increa ed I 7% in I 983 to a record 
2. I 96,036,000 compared with $ I ,877,568 ,000 in 198_ 
and I .854.290,000 in I 981. Pa senger revenues for the 
year increa ed 15 .6% to I ,8 I 2,227,000 on a I 3% increase 
m r enue pa nger-miles and a 2.3% increase in yield 
(re enue per pa enger mile). I 982 pa enger revenues of 
1.567,986.000 were 3% higher than I 98 I , due entirely to 
increa ed traffic. 
While I 983 revenue pa senger-mile increa ed I 3%, 
available eat-mile increased only 12.4% resulting in a .3 
p rcentage point increa e in load factor to 60%. The I 982 
load factor of 59. 7% wa a 2. 3 percentage point increase 
o er I 98 I. 
The domestic market experienced everal major fare 
change during I 983. Fare war dominated the first quarter 
when $99 fare were wide pread, while the econd quarter 
howed ome ign of yield improvement due to the 
elimination of many di count fare . Yield improvement 
Sources of 1983 Operating Revenues 
(Thousands of Dollars) 
Pa senger - Coach 
1.6 1.964 
76.6o/c 
Freight 
2 9. I 70 
13.2% 
Pa enger - Fir t Cla 
130.263 
- .9o/c 
Mail 
 --.5 5 
2.59c 
Charter and Other 
39 _ 0-  
l . q. 
continued in the third and fourth quarters as a result of 
several discount fare increases and a lower level of special 
discount and promotional fare traffic. 
Freight revenues increased a record $84,152,000 or 41 % 
to $289,170,000 as freight ton-miles increased 39.2% and 
yield per ton-mile increased 2%. 1982 freight revenues of 
$205,018,000 were down 7.5% from the $221,691,000 
recorded in 1981 primarily due to reduced 747F freighter 
operations during the strike in 1982. Mail revenues 
decreased by 4,866,000 to $55,585 ,000 in 1983 , 
primarily the result of U.S. mail rate reductions. Charter 
and other tran portation revenues increased $1,440,000 to 
$36,198,000. 
Operating Expenses 
Operating expenses for 1983 totaled $2,127,150,000 
compared with $1 885,943,000 in 1982 and 
$1,852,543,000 in 1981. Despite the 12. 8% increase in 
total expenses, operating expenses per available ton-mile 
decreased in 1983 for the third straight year to 40.5 from 
40.7 in 1982 and 41 in 1981. 
Distribution of 1983 Operating Expenses 
(Thousands of Dollars) 
Fuel and Oil 
672 ,169 
31.6% 
Employee Wage and Benefits 
$569,535 
26.8% 
Landing Fees, Rentals, 
Material and Services 
486,595 
22.9% 
Commis ion 
251.943 
11 .8% 
Depreciation and Amortization 
146.90 
6.9o/c 
 The co t per gall n of jet fuel declined 9. 97 from 198_ 
and, a a result total fuel co t for 1983 wa up a mode t 
.8'7 de pite a L ~ increa e in re enue plane-mile flo n. 
Per onnel co t increa ed 18. 9~ and other a h 
e pen e ro e 16.0o/l in 19 3 reflecting an in rea m 
capa i and higher le el of traffic a ell a moderate 
increa e in \ age and upplier price le el . 
gene commi ion increa ed b 68,312 ,000 in 1983 
due to increased commi sion rate and a higher le el of 
ale b commi ion agent . 
Depreciation and amortization expen e totaled 
l-+6 ,908.000 in 198 compared ith 136.651,000 in 
1982 and 133 489 .000 in 1981. The 1983 in rea e wa 
primaril the re ult of the addition of a ne 747F freighter 
in September and the rapid rite-off of e eral u ed 7 _ 7 
aircraft acquired during the ear. The impact and effect of 
inflation and changing price are di cu ed in Footnote J to 
the financial statement . 
Operating Revenues and Expenses 
( lillion of Dollar ) 
Revenues 
5 __ 200 
__ 000 
1.800 
1.600 
1.400 
 1 __ 
oo 
Expen e 
' 
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' 
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00 
0 
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17 
Earnings and Di idends 
et earning of 50,07 .000 ( 2. 19 per hare for 1983 
were a ub tantial improvement o er the $5.019 .000 ( . 23 
per hare) and 10.460.000 $.4 per hare) reported in 
19 _ and 19 l re pecti el . 
Operatincr re enue increa d 17% in 1983 \ hile 
op rating e pen e ro e L . ~ . r ulting in operating in- 
ome of $68, 6,000 compared to an 8.375,000 operating 
lo in 198_ and operating income of 1.747 ,000 in 1981. 
In e tmentincomein 1983totaled 7,960.000 
compared ith 2.550,000 in 19 _ and 2,-66.000 in 
19 l . Interete penetotaled 3,54 .000inl983. 
7 .216.000 in 19 - and 14, l 5 000 in 1981. 
Gain from the di po al of equipment a a mode t 
05 ,000 in 1983 a no aircraft v ere old. 1982 gain 
totaled L , _5 ,000 and 1981 gain v ere $16 ,975 .000 
reflecting the ale of fi e and e n Boeing 7 _ 7- 1 OOC 
air -raft re pecti el . 
Earning before income ta e for 198 ere 
73 ,60 .000. and compare with 6 8 000 for 19 _ and 
7 ,909.000 for 1981 . 
Stockholders Equity S Long Term Debt 
(Milli n of Dollar ) 
'900 
r o 
600 
' 300 
I 0 
0 
Equity - Debt 
' 
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 Management's Discussion And Analysis (Continued) 
18 
The 1983 operating income of $68,886,000 is the 
highest Northwest has achieved since the record year of 
1977 , while the $50,073,000 net earnings are the largest 
since 1979. 
Northwest Airlines continued its dividend payment 
policy in 1983 with quarterly payments for the 29th 
consecutive year. Cash dividends of 80 per share were 
paid totaling $17,367,000. Northwest common stock is 
principally traded on the New York Stock Exchange. A 
table showing sales prices and dividends paid per share in 
1983 and 1982 is included on page 33. 
Taxes on Earnings 
Income tax expense totaled $23 530,000 in 1983 compared 
to income tax credits of $4,331,000 in 1982 and 
$2,551,000 in 1981. Investment tax credits earned were 
$9,745,000 in 1983 , $3,128,000 in 1982, and $4,837,000 
in 1981. In 1 
estment tax credits are applied on tax returns 
as allowed by income tax regulations. Credits not currently 
applied are offset against deferred taxes , and as of 
Operating Costs Per Available Ton Mile 
$.42 
$.40 
.3 
$.36 
 .34 
S.32 
.30 
December 31. 1983 these credit totaled $36,46 1,000. No 
tax benefit were "sold " during 1983 as Northwest 
Airline plans to utilize all of it depreciation deduction 
and investment tax credits in its own tax returns . The 
Company continues to use accelerated depreciation 
methods for income tax purposes as provided by law. 
Financial Condition 
With its 854,189,000 of stockholders' equity and low 
level of debt, Northwest ranks as one of the financially 
strongest carriers in the industry. Unlike many others, 
Northwest is not saddled with a heavy debt load and the 
resulting interest burden ( 1983 investment income actual ly 
exceeded interest expense), and its entire fleet of aircraft is 
owned and paid for. Even though the fleet expansion 
program recently entered into i the most aggressive in the 
history of the Company, it is expected that the purchases 
can be financed largely with internally generated funds. 
Despite the largest first quarter loss in Northwest' 
Fuel Efficiency Increases 
(Revenue ton miles per gallon) 
''' Percent of increa~e over 1979 
4.0 
3.75 
3.50 
3.25 
3.00 
2.75 
2.50 
2.25 
2.00 
-I 
I I 
I I I I 
I I 11 . 
I I 1 
 I 
I I I I 
. ' 
. ._ ._ 
.. 
. - 
 hi tor . the Compan produced net earning in 19 of 
50.073,000 on the trength of record third quart r 
earning . the 35th on e uti ,ear of profitabl op ration. 
The outlook for 19 4 i encouraging. and orthv e t" 
trong financial condition. dedicated emplo ee . and 
efficient operation hould allov for a trong performance 
in the future. 
Cash Flow, Liquidity and Capital Resources 
Cash pro ided from operation totaled 209. 65 .000 
compared ith 13_. 95 .000 in 19 _ and I 39. 63 .000 in 
19 I . Included in a h from operation are the benefit 
from orth e t" polic of O\ ning rath r than lea ing it 
equipment. hich in 1983 pro ided ca h through 
depreciation and amortization totaling$ l-l-6.908.000. In 
Februar . 1983 Northv e t irline old I 00.000.000 of 
71 
/2% Con ertible Subordinated Debenture due in _007 
v hich are con ertible into common tock at a rate of 
$50. 75 per hare. 
Ca h and hart-term in e tment increa ed to 
IO l .686.000 a total ca h pro ided of -+ r .66- .000 
e ceeded the 406.-t 79,000 total ca h u ed b 
69.1 6.000. The major u e of ca h during the ear v ere 
Selected Financial Data 
(In Thou and 
Year Ended December 31 1983 
19 
equipment purcha e of 134.684,000 and aircraft depo it 
of 99.572,000. One ne Boeing 747-200 freighter and 
ix u ed 727' were pla ed into er ice during 1983. 
orth e t ha ontracted to purcha e four Boeing 74 7-200 
pa enger aircraft for deli er in l 984 and t ent Boeing 
757 pa enger aircraft for deli er in 1985 and 1986. The 
total co t of the e aircraft and related equipment will be 
l.140 .206.000 of hich 99.572.000 i alread on 
depo it ith the manufacturer. The proceed from the 71 
/:/~ 
Con ertibl Subordinated Debenture plu a h from 
operation , upplemented with borrowing a nece ar . will 
be u ed to make the remaining pa ment on the e aircraft 
hich will be 240.68 .000 in 19 4. 407 .048 .000 in 
1985, and 392.89 .000 in 1986. With total debt of on! 
12~ of tockholder ' equit . a commercial paper rating at 
the highe t A- l/P-1 le el . and net a et in e ce of 
5-l-.000.000, orth e t belie e it ill ha e no diffi ult 
in generating adequate ca h to meet all future corporate 
need . At December 31. 1983 orthwe t had 
100.000.000 in bank line of credit. Book alue per hare 
of common tock increa ed to 39.33 at December 31, 
1983 compared ith 3 7. 85 at December 31. 1982 and 
3 .43 at December 31, 1981 . 
19 :2* 19 1 19 0 1979 
Operating Re enue $2,196,036 1.877 .568 1.854._90 1,639.330 1.310.558 
et Earnings 50,073 5.019 10,460 7.084 7_.475 
Total Assets 1,602,236 1,377 .387 1.492,381 l .532 ,539 1,5- 8.9_] 
Long-Term Debt 100,000 12.500 62.500 100,000 
Per Common Share: 
Earnings 2.19 .23 .48 .33 3.35 
Ca h Dividend .80 .80 .80 .80 .80 
 Direct service to Tucson from Minneapolis/St. Paul, Milwaukee, and Phoenix was inaugurated 
in 1983, making Tucson the fifteenth Sun Belt city served by Northwest. 20 
 Statements of Earnings Northwest Airlines, Inc. 
(In Thousands) 
Year Ended December 31 
Operating Revenues 
Passenger 
Freight 
Mail 
Charter and other transportation 
Non transport 
Operating Expenses 
Flying operations 
Maintenance 
Passenger service 
Aircraft and traffic servicing 
Reservations , sales and advertising 
Administrative and general 
Depreciation and amortization 
OPERATING INCOME (LOSS) 
Other Income (Expenses) 
Investment income 
Interest, net of capitalized interest 
(1983-$4,872; 1982-$1 ,681 ; 1981-$672) 
Gain on sale of flight equipment 
Other 
EARN! GS BEFORE I COME TAXES 
Income tax expense ( credit) - ote D 
Earnings per share - primary and fully diluted . 
1983 
$1,812,227 
289,170 
55,585 
36,198 
2,856 
2,196,036 
868,145 
192,383 
186,802 
308,782 
383,551 
40,579 
146,908 
2,127,150 
68,886 
7,960 
(3,548) 
805 
(500) 
4,717 
73,603 
23,530 
$ 50,073 
$ 2.19 
*Operating results were affected by a major strike which extended from May 22, 1982 to June 17. 1982. 
See notes to fi nancial statements. 
21 
1982* 1981 
$1 ,567,986 $1,521 ,856 
205 ,018 221 ,691 
60 ,451 59,786 
34,758 21 ,766 
9,355 29 ,191 
1,877 ,568 1,854,290 
838 ,693 858 ,997 
149,749 156,450 
158,816 147,650 
265 ,764 248 ,766 
298 ,611 271 ,344 
37,659 35 ,847 
136,651 133,489 
1,885 ,943 1,852,543 
(8,375) 1,747 
2,550 2,266 
(7,216) (14,135) 
12,425 16,975 
1,304 1,056 
9,063 6,162 
688 7,909 
(4,331 ) (2,551 ) 
$ 5,019 $ 10,460 
$ .23 $ .48 
 Statements of Financial Position Northwest Airlines, Inc. 
( Dollars In Thousands) 
December 31 
ASSETS 
Current Assets 
Cash and short-term investments 
Accounts receivable, less allowance of $1,800 
Flight equipment spare parts, less allowance for depreciation of $31,406 ( 1982-$27 ,086) 
Maintenance and operating supplies 
Prepaid expenses 
1DTAL CURRENT ASSETS 
Other Assets 
Property And Equipment 
Flight equipment 
Less allowance for depreciation 
Advance payments on new flight equipment 
Other property and equipment 
Less allowance for depreciation 
22 
1983 1982 
$ 101,686 $ 32,500 
189,665 143,647 
58,502 41,417 
17,599 20,171 
18,372 14,597 
385,824 252,332 
12,409 10,159 
2,080,299 1,996,925 
1,103,798 977,854 
976,501 1,019,071 
99,572 
242,233 199,161 
114,303 103,336 
127,930 95,825 
1,204,003 1,114,896 
$1,602,236 $1,377,387 
 December 31 
LIABILITIES AND STOCKHOLDERS' EQUITY 
Current Liabilities 
Commercial paper 
Accounts payable and other liabilities 
Employee compensation 
Air traffic liability 
Income taxes 
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 
21,715,995 shares (I 982-21,678,458) 
Capital surplus 
Retained earnings 
Commitments And Contingencies - Notes E and F 
See notes to financial statements. 
$ 
1983 
214,662 
50,863 
104,933 
5,097 
375,555 
100,000 
260,123 
12,369 
272,492 
27,145 
126,474 
700,570 
854,189 
$ 
23 
1982 
4,958 
173,357 
40,016 
77,205 
2,790 
298,326 
247,239 
11,217 
258,456 
27,098 
125,643 
667,864 
820,605 
$1,602,236 $1,377,387 
 Statements of Changes in Financial Position Northwest Airlines, Inc. 
(In Thousands) 
Year Ended December 31 
Cash Provided 
Net earnings 
Add (deduct) non-cash items: 
Depreciation and amortization 
Increase (decrease) in deferred income taxes 
1DTAL FROM OPERATIONS 
Issuance of 7 % convertible debt 
Issuance of commercial paper and other borrowings 
Decrease in interest receivable 
Increase in accounts payable and other liabilities 
Increase (decrease) in air traffic liability 
Net book value of property dispositions 
Other 
1DTAL CASH PROVIDED 
Cash Used 
Flight equipment and other property additions 
Deposits made on flight equipment 
Payments of commercial paper and other borrowings 
Reduction of long-term debt including current maturities 
Increase in accounts receivable 
Dividends 
Other 
1DTAL CASH USED 
INCREASE (DECREASE) IN CASH AND SHORT-TERM INVESTMENTS 
Cash and short-term investments at the beginning of the year 
Cash and short-term investments at the end of the year 
See notes to financial statements. 
1983 
$ 50,073 
146,908 
12,884 
209,865 
100,000 
76,042 
41,305 
27,728 
2,667 
18,058 
475,665 
134,684 
99,572 
81,000 
46,018 
17,367 
27,838 
406,479 
69,186 
32,500 
$101,686 
1982 
$ 5,019 
136,651 
(8,775) 
132,895 
40,516 
43,528 
21,174 
(11,028) 
4,731 
5,450 
237,266 
55,070 
81,109 
62,500 
5,535 
17,332 
17,790 
239,336 
(2,070) 
34,570 
$ 32,500 
24 
1981 
$ 10,460 
133,489 
(4,086) 
139,863 
46,332 
9,840 
(18,780) 
6,274 
8,394 
191,923 
50,676 
34,949 
37,500 
13,155 
17,326 
24,261 
177,867 
14,056 
20,514 
$ 34,570 
 Statements of Stockholders' Equity Northwest Airlines, Inc. 25 
(In Thousands) 
Common Stock 
Capital Retained 
Shares Amount Surplus Earnings 
Balance January 1, 1981 21,647 $27,059 $124,940 $687,043 
Exercise of stock options 14 18 316 
Net earnings for 1981 10,460 
Cash dividends - $.80 a share (17,326) 
Balance December 31, 1981 21,661 27,077 125,256 680,177 
Exercise of stock options 17 21 387 
Net earnings for 1982 5,019 
Cash dividends - $.80 a share (17,332) 
Balance December 31, 1982 21,678 27,098 125,643 667,864 
Exercise of stock options 38 47 831 
Net earnings for 1983 50,073 
Cash dividends - $.80 a share (17,367) 
Balance December 31, 1983 21,716 $27,145 $126,474 $700,570 
See notes to financial statements. 
 Notes to Financial Statements Northwest Airlines, Inc. 
December 3 I . 1983 
26 
Note A - Accounting Policies 
A summary of significant accounting policies of the 
Company is set forth below: 
Basis of Presemation: The financial statements include the 
accounts of the Company and its wholly-owned 
subsidiaries after elimination of inter-company accounts 
and tran actions. 
Sho11-Term Investments: Short-term investments are stated 
at cost which approximates market and amounted to 
$78,547,000 and $18,330,000 at December 31, 1983 and 
1982, respectively. 
Flight Equipment and Property: Provision for depreciation 
is computed by the straight line method over the estimated 
useful lives of the assets. Useful lives are estimated at 
fifteen years with 10% residual values for 747 and DC-IO 
aircraft and ten years with 15% residual value for 727 
aircraft. Useful lives of buildings vary from 5-30 years and 
other equipment from 4-10 years. Depreciation of flight 
equipment spare parts, rotables and assemblies is provided 
by the straight line method at rates which depreciate cost, 
less residual value, over the estimated useful lives of the 
related aircraft. 
Pension Plans: The Company has several noncontributory 
pension plans covering substantially all of its employees. 
The Company's policy is to annually fund pension costs 
accrued, which includes amortization of prior service costs 
over periods of ten to thirty years. 
Income Taxes: Income taxes are provided at statutory rates 
to earnings before income taxes regardless of when such 
taxes are paid. Deferred income taxes arise principally 
from timing differences between financial and tax methods 
of accounting for depreciation and capitalized interest. 
The Company uses the flow-through method of 
accounting for investment credits. 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. 
Operating Revenues: Passenger and freight revenues are 
recognized when the transportation is provided. 
Earnings Per Share: Net earnings per share are calculated 
by dividing net income, adjusted for interest expense (net 
of income taxes) related to the convertible debentures, by 
the weighted average number of shares of Common Stock 
and Common Stock equivalents. Common Stock 
equivalents consist of convertible debentures and stock 
options. 
Note B - Long-Term Debt and Credit Arrangements 
The Company has line of credit arrangements with banks 
for short-term borrowings up to $100,000,000 through 
April 15, 1984. Bmrnwings under the credit lines bear 
interest at the prime rate. Commitment fees which are 3/s% 
per annum on outstanding balances of commercial paper 
amounted to $16,000 in 1983. 
Long-term debt consists of 71 
/2% Convertible 
Subordinated Debentures due in 2007. The debentures are 
convertible into Common Stock at a rate of $50. 75 per 
share. The Company may redeem the debentures at any 
time after December 15, 1984 at prices ranging from 107% 
in 1984 to 100% after 2001, of the principal amount. 
Annual sinking fund payments are required beginning in 
1992 of $5,000,000, less the amount of debentures 
converted or redeemed. 
Note C - Stockholders' Equity 
Shares 
Cumulative Preferred Stock, 
$25 par value: 
Authorized 
Issued 
1983 1982 
1,000,000 1,000,000 
None None 
The Company has 1,970,443 shares of Common Stock 
reserved for conversion of the 71/2% convertible 
subordinated debentures as of December 31. 1983. 
 27 
Common Stock options at prices which were not less Shares available for stock option and other plans were 
than 100% of market at date of grant are as follows: 203,835 and 181,487 at December 31 , 1983 and 1982, 
Shares Price Per Share respectively. 
Outstanding at 
Note D - Taxes on Earnings (In thousands) 
January 1 , 1982 44,118 $22. 75/24.00 
Granted 130 000 23.31 Reconciliation of the Company's effective income tax rate 
Exercised (17 ,091) 22. 75/24.00 is as follows: 
Lapsed (2,700) 23.31 Year Ended December 31 1983 1982 1981 
Outstanding at 
Statutory rate applied to 
pre-tax income $33,857 $ 316 $ 3,637 
December 31. 1982 154,327 22. 75/23.31/24.00 
Add (deduct): 
Exercised (37,537) 22.75/23.31/24.00 
Investment tax 
Lapsed (22 348) 22. 75/23.31/24.00 
credit earned (9,745) (3 ,128) (4,837) 
Outstanding at Rate change on timing 
December 31 , 1983 94,442 23.31 differences (1,284) (1,152) (1 ,390) 
Other 702 (367) 39 
Options exercisable: Total income tax 
At December 31 , 1982 27,027 22. 75/24.00 expense (credit) $23,530 $(4,331) $(2,551) 
At December 31 . 1983 34,142 23.31 
Federal, foreign and state income taxes ( credit) consists of the following: 
Federal 
Foreign 
State 
Current 
$6,396 
827 
2,068 
$9,291 
1983 1982 1981 
Deferred Current Deferred Current Deferred 
$14,138 $1 619 $(6,821) $ 22 $(3,598) 
855 788 
101 1,009 (993) (207) 444 
$14,239 $3,483 $(7,814) $603 $(3, 154) 
The deferred income tax expense (credit), consists of the 
following: 
1983 1982 1981 
Accelerated 
depreciation $(10,961) $ (3,947) $ 1,919 
Investment tax and 
other credits 24,123 13,127 (11,064) 
Prepaid expenses 1,024 (51) 1,525 
Interest 2,241 (18,724) 5,452 
Deferred employee 
benefits (685) 3,437 (25) 
Rate change on timing 
differences (1,284) (1,152) (1,160) 
Other (219) (504) 199 
$14,239 $ (7,814) $ (3,154) 
Investment tax credits of $36,46 I not applied on tax 
returns but offset against deferred income taxes at 
December 31, 1983 will expire $18,707 in 1995; $4,817 in 
1996: $3,198 in 1997; and $9,739 in 1998. 
 Notes to Financial Statements (Continued) Northwest Airlines, Inc. 28 
Note E - Commitments 
The Company does not lease any aircraft or related flight 
equipment. 
At December 31 , 1983 the Company had contracted to 
purchase four Boeing 747-200B aircraft for delivery in 
1984 and twenty Boeing 7 57 aircraft for delivery in 1985 
and 1986. Deposits of $99,572,000 have been made with 
the manufacturers , and additional expenditures of 
$240,688,000 in 1984, $407 ,048 ,000 in 1985 and 
$392,898,000 in 1986 will be required for these aircraft 
and related equipment. 
Leased property consists of space in air terminals, land 
and buildings at airports, and ticket, sales and reservation 
offices under noncancelable operating leases which expire 
in various years through 2018. Portions of these facilities 
are subleased under noncancelable operating leases 
expiring in various years through 1991. 
Future minimum rental commitments at December 31 , 
1983 for noncancelable operating leases with initial or 
remaining terms of one year or more, of which 
$321 ,000,000 is for air terminal and airport facilities, are 
as follows: 
1984 
1985 
1986 
1987 
1988 
Thereafter 
$ 25,389,000 
22,456,000 
21,424,000 
20,379,000 
18,011,000 
227,421,000 
Sublease rental income 
335,080,000 
4,457,000 
$330,623,000 
Rental expense for all operating leases consisted of: 
Minimum 
Sublease 
rental 
income 
1983 1982 1981 
$35,633,000 $29,571 ,000 $25,238,000 
(1,099,000) (1,075,000) (917,000) 
$34,534,000 $28,496,000 $24,321,000 
Note F - Contingencies 
The Company is a defendant in a class action brought in 
1970 in federal court in Washington , D.C. 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 appealed that decision . The Court of Appeals for 
the District of Columbia affirmed the trial judge on all 
substantive issues and remanded the case for further 
consideration by the trial court. After a denial of a motion 
for rehearing by the Court of Appeals, the Company 
petitioned the Supreme Court of the United States to 
review the decision of the Court of Appeals. That petition 
was denied on February 21, 1978. The case was then 
remanded to the trial court. 
On remand the trial court resolved several outstanding 
issues and determined an award of damages to each of the 
plaintiffs. Judgment was entered on November 30, 1982 
with total awards amounting to approximately 
 1mp:rn: :.rnd the plaintiffs hJ, e 
urt \..1 f Ap~" at: fr,r the Di:tri(t 
ir 'uir. H\.. we, r. if the laimiffs pr , ail and 
th mpany doe: nN reY::iil 1n th als. the ultinur 
liJ ilit~ miS":ht b inffe:1: d b: :rn am ,, hi 'h the 
Qmp ny :urn r rres nrly qu:rntif:. 1:-, 2ll. IQ _'. th 
rrial (0Urt enter d judgment against the 1mp n: fl r 
:1p r':--.imately ~2 .: 0.0l in anome: sf es and .:\..1,'t'-. 
Th. t judgment has :1lsl'1 
been app a.led by the Oll1f an:. 
The ultimate ur.: m of this litigatiL...,n (,mn 1t be 
predio d and. th refor . 1w sp ific ank unr of ultimate 
liability m:::i.:-, b :timated a: pn able. The 1mp.m: 
e.::timate.:: rhar it: ulrimat liability ma:-, rang fr\..1 111 
appn)\.imat ly .= 1. (). l induding 
plaintiff: :Ht\.. rn ys fee_ and '\..1st: and inten :t rhr1.__1ugh 
De(ember: 1. I ~3. 
The mpany i: al o in\"L--i!Yed in oth r I gal a 'tions 
relating t 1 emironm ntal i.::.::u s t rim:1ril:-, n1.__1i:e and air 
pc lluti n . alleged empl yee di: 'rimination. and 0th r 
m:mers relating r the ompany: usine:s. \\'hik the 
Ct mpany i - unabl t 1 predi 't th ultimate ut '1.__1me 1f th se 
a.:rions. it is the c pinion of m:rnagem nt that their 
dispositi n will not haw a material adver:e fleet on the 
C "mpany- finan ial po irion. 
29 
'\ote G - Pen'\ion Plan - 
The 1mp:111:-, s p nsiL 11 c\.pi.:'!1S \\ ;l_' 
s_ -. l -. in l () ' 
.:-23 . ..it:iO.l>l in lll ... 2 ,lll s,:-__ 5--t-.l(l(l in 14<. I. 
leruin :timares rc1J1in~ tc1 a 't 1ariJI as.umpti\..n:- ,, 'r 
'h,m=:- d in l O(. _ _ Th .._'h,rntc, re.ult din r du.: d l u 2 
n.-it n e\p ns \..1f ~1ppr 1\t11Ut 1:-, : I l'l.~ milli 111. 
.-'\ppn_ 
...,\.inur l~ :-. .:: milli n l,f th d1~ln.  'UIT d in rh 
fL'lurth quart r. The ch n~es in stimat s h:i, n efte 't <..1n 
pcn,-i<..nben fits fl"' m~k"':" s . 
. -'\, 'umular d pla1 b n fit infonn,HiQn. a, rinur 
't 
n,ulting J -rn:iries. and plan n 't as, ts fr r th 1111~ Jn:-, s 
A 'tuari:11 pr sent , :.ilue 
<..1f ,1, 'Urnulated plan 
b n fir:: 
\ . sred 
er as:ets a\ ailabl for 
b ~nefit: 
.."3"'3.19S.000 
37.131.000 
.. -H0 . .330.000 
$55 L 968. 000 
The im rest rare u:ed in 'Omputing rhe present \ alu 0f 
ac -umubted p!:ln benefits \\ a: -r e\. -e r for ' nain 
rerir d plan participants \\her a l-Vc rat \\ 'JS used. Th 
rare for retirees i  bas d upon the a 'tual earnings l1 f a 
dedicated : 'uriti ": p0rtf1Jlil"' ,tat lished f w th pa) ment 
of their benefits . 
.  ote H - Export Sales 
 rthw st .-'\irline . ln '. i, a S'hedul d air ';,l!Ti'r ngagt.'d 
in 'l1mmercial transportation <.. f passeng rs. freight and 
mail. and c p 'rates under ccnifi -ares f pub Ii( c rn ni nc 
and n cejry issued b:-, rh iYil Aer0n:.1uti s BL ard . 
E\pmsale  wcre ~ L.000,)LOin l :)3 . "'_-_, .Cl10.Cl0in 
l )2 and .:..i..-: .000.0 0 in l ... l, principal I: a..::sociated 
\\ irh 'L"'luntries in A ia and Eut\1f '. RcYenu" from .'aks 
consummated in f reign 'Ountrie: is onsid --red tl b' 
t'\fLrt :ale:. 
 Notes to Financial Statements (Continued) Northwest Airlines, Inc. 
30 
Note I - Quarterly Results of Operations (Unaudited) 
The following is a tabulation of the unaudited quarterly 
results of operations for the two years ended December 31, 
1983: 
1983 
First quarter 
Second quarter 
Third quarter 
Fourth quarter 
1982* 
First quarter 
Second quarter 
Third quarter 
Fourth quarter 
Operating 
Revenues 
$ 451,882 
537,537 
646,670 
559,947 
$2,196,036 
$ 415,438 
414,106 
574,995 
473,029 
$1,877,568 
(In Thousands) 
Operating 
Expenses 
$ 495,077 
513,482 
569,597 
548,994 
$2,127,150 
$ 451,588 
419,290 
527,103 
487,962 
$1,885,943 
Earnings 
Net (Loss) Per 
Earnings Share of 
(Loss) Common Stock 
$(20,905) $ (. 96) 
14,356 .66 
45,050 1.91 
11,572 .49 
$ 50,073 $2.19 
$(17,968) $(.83) 
(1,453) (.07) 
27,010 1.25 
(2,570) (.12) 
$ 5,019 $ .23 
*Operating results were affected by a major strike which extended from May 22, 1982 to June 17, 1982. 
See also Note G. 
Note J - Supplemental Information on the Effects of 
Changing Prices (Unaudited) 
AS REQUIRED BY FINANCIAL ACCOUNTING 
STANDARDS BOARD (FASB) STATEMENT NO. 33, 
"FINANCIAL REPORTING AND CHANGING 
PRICES" , THE COMPANY MUST PROVIDE 
SUPPLEMENTAL INFORMATION CONCERNING THE 
EFFECT OF CHANGING PRICES ON ITS FINANCIAL 
STATEMENTS. The disclosures are intended to address 
two different aspects of an inflationary environment: (I) 
the effect of a rise in the general price level on the 
exchange value or purchasing power of the dollar (called 
"general inflation") and (2) the specific price changes in 
the individual resources used by the Company. Because 
there is presently no consensus on which aspect of inflation 
(if any) should be reported, FASB has devised an 
experiment requiring certain large, publicly held companies 
to present supplemental information reflecting both types 
of inflation measurements. 
IT IS IMPORTANT THAT FINANCIAL STATEMENT 
USERS UNDERSTAND WHAT THE INFLATION 
ADJUSTED DATA IS INTENDED TO REPRESENT, 
AND ALSO RECOGNIZE ITS INHERENT 
LIMITATIONS. THE COMPANY HAS SERIOUS 
RESERVATIONS ABOUT THE USEFULNESS OF THIS 
DATA. 
The Company believes that the following information is 
essential for a proper understanding and assessment of the 
data presented: 
THE SUPPLEMENTAL INFORMATION ON 
CHANGING PRICES DOES NOT REFLECT A 
COMPREHENSIVE APPLICATION OF EITHER TYPE 
OF INFLATION ACCOUNTING. During the experimental 
period the FASB decided to focus on those items most 
affected by changing prices, that is: (1) the effect of both 
general inflation and specific price changes on properties 
and related depreciation expense, and (2) the effect of 
general inflation on monetary assets and liabilities. 
 Statement of Earnings Adjusted for Changing Prices 
Year Ended December 31, 1983 
(Dollars In Thousands) 
Operating revenues 
Depreciation and amortization 
Other operating expenses 
Gain on sale of flight equipment 
Other income, net 
Earnings (loss) before income taxes 
Income taxes 
Net earnings (loss) 
Other Information 
Purchasing power gain from holding net monetary liabilities during 
the year 
Increase in specific prices (current costs) of property and equipment held 
during the year* 
Less e:ff ect of increase in general price level 
Excess of increase in specific prices over increases in the general 
price level 
As Reported 
in the Primary 
Statements 
$2,196,036 
146,908 
1,980,242 
(805) 
(3,91 2) 
2, 122,433 
73 ,603 
23 ,530 
$ 50,073 
Adjusted 
for General 
Inflation 
$2,196,036 
258,061 
1,980,242 
(763) 
(3,91 2) 
2,233 ,628 
(37,592) 
23 ,530 
$ (61 ,122) 
Adjusted 
for General 
Inflation 
$ 13,794 
31 
Adjusted for 
Changes in 
Specific Prices 
(Current Costs) 
$2,196,036 
348,982 
1,980,242 
(3,912) 
2,325,31 2 
(129,276) 
23 ,530 
$ (152,806) 
Adjusted for 
Changes in 
Specific Prices 
(Current Costs) 
$ 13,794 
$ 522,338 
92,143 
$ 430,195 
*At December 31 , 1983, current cost of property and equipment, net of accumulated depreciation, was $3,011 ,477 ,000 (historical amount - 
$1 ,204,003,000) . 
Five Year Comparison of Selected Supplementary Financial Data Adjusted For Effects of Changing Prices 
In Average 1983 Dollars 
Year Ended December 31 
Operating revenues 
Historical Cost Information Adjusted for 
General Inflation 
Net earnings (loss) 
Per share data 
Net assets at year-end 
Current Cost Information 
Net earnings (loss) 
Per share data 
Excess of increase in specific prices of property 
and equipment over 
increase in the general price level 
Net assets at year-end 
Other Information 
Purchasing power gain from holding net 
monetary liabilities during the year 
Cash dividends declared per common share 
Market price per common share at year-end 
Average consumer price index 
1983 1982 1981 1980 1979 
(In thousands of dollars , except per share data) 
$2,196,036 $1 ,937,967 $2,031 ,278 $1 ,982,075 $1 ,798,852 
$ 
(61,122) 
(2.60) 
1,556,173 
(152,806) 
(6.51) 
430,195 
2,668,281 
13,794 
.80 $ 
44.75 
298.4 
(110,000) 
(5 .08) 
1,610,520 
(172,442) 
(7. 96) 
240,391 
2,390,227 
14,077 
.83 $ 
48 .51 
289.1 
(97 ,348) 
(4.49) 
1,700,847 
(147,996) 
(6.82) 
112,393 
2,387,046 
42,586 
.88 $ 
29.58 
272.4 
(75 ,793) 
(3 .51) 
1,777,083 
(108 ,185) 
(4.99) 
164,624 
2,435 ,616 
63 ,765 
.97 $ 
28.73 
246.8 
17,894 
.83 
1,818 ,041 
(27 ,402.) 
(1. 26) 
46,775 
2,391 ,053 
64,976 
1.10 
37.92 
217.4 
 Notes to Financial Statements (Continued) Northwest Airlines, Inc. 32 
Starement of Earnings 
The accompanying supplemental statement of earnings 
presents income data under three measurement methods. 
These are: 
a. As Reported in the Primary Statements - This 
amount is net earnings as reported in the primary financial 
statements on the historical cost basis of accounting. Under 
generally accepted accounting principles the effects of 
changing prices generally are not recognized for assets and 
liabilities. 
b. Adjusted for General Inflation - This represents the 
historical amounts of revenues and expenses stated in 
dollars of the same (constant) general purchasing power, as 
measured by the average level of the Consumer Price Index 
(CPI) for 1983. Under this measurement method, historical 
amounts of depreciation expense and the gain on the sale of 
properties are adjusted to reflect the change in the level of 
the CPI that has occurred since the date the related 
properties were acquired. The amounts of revenues and 
other costs and expenses already approximate average 1983 
constant dollars and remain unchanged from those amounts 
presented in the primary financial statements. 
c. Adjusted for Changes in Specific Prices (Current 
Costs) - Income under current cost accounting attempts to 
deal with a different issue than income adjusted for general 
inflation. The specific prices of the Company's property 
have risen at a different rate than the general inflation rate 
as measured by the CPI. Current cost accounting measures 
properties at their current cost (rather than their historical 
cost) at the balance sheet date; depreciation is computed on 
average current cost for the year. 
Income Taxes 
Current tax laws do not recognize deductions for current 
cost depreciation expense; therefore, no adjustments have 
been made to the provisions for income tax. 
Purchasing Power Gain from Holding Net Monetary 
Liabilities During the Year 
When prices are increasing, the holding of monetary assets 
(e.g., cash and receivables) results in a loss of general 
purchasing power. Similarly, liabilities are associated with 
a gain of general purchasing power because the amount of 
money required to settle the liabilities represents dollars of 
diminished purchasing power. The net gain in purchasing 
power is shown separately in the accompanying 
supplemental data. The amount has been calculated based 
on the Company's average net monetary liabilities for the 
year multiplied by the change in the CPI for the year. Such 
amount does not represent funds available for distribution 
to stockholders. 
Increases in Current Cost of Properties 
Under current cost accounting, increases in specific prices 
(current cost) of properties held during the year (including 
realized gains and losses on those sold) are not included in 
income from continuing operations but are presented 
separately. The current cost increase is reduced by the 
effect of general inflation measured by applying the annual 
rate of change in the CPI to the average current cost 
balances of properties. 
Current Cost Measurements 
The current cost of property and equipment has been 
estimated by management using pricing data furnished to 
the airline industry by the Air Transport Association. Flight 
equipment represents approximately 90% of the property 
and equipment. 
Current cost depreciation is based on the average current 
cost of properties during the year. The depreciation 
methods (straight-line), salvage values and useful lives are 
the same as those used in preparing the primary financial 
statements. 
Current cost calculations involve a substantial number of 
judgments as well as use of various estimating techniques 
that have been employed to limit the cost of accumulating 
the data. The data reported should not be thought of as 
precise measurements of the assets and expenses involved, 
but instead represent reasonable approximations of the 
price changes that have occurred in the business 
environment in which the Company operates. 
Current cost does not purport to represent the amount at 
which the assets could be sold. 
 Accountant's Report 
To the Stockholders and Board of Directors 
Northwest Airlines, Inc. 
Saint Paul, Minnesota 
We have examined the statements of financial position of 
Northwest Airlines, Inc. and subsidiaries as of December 
31, 1983 and 1982, and the related statements of earnings, 
stockholders' equity and changes in financial position for 
each of the three years in the period ended December 31. 
1983. Our examinations were made in accordance with 
generally accepted auditing standards and, accordingly, 
included such tests of die accounting records and such 
other auditing procedures as we considered necessary in 
the circumstances. 
Stockholders' Information 
Stock Prices and Dividends 
Sales Price of Dividends 
Common Shares Per Share 
Quarter 1983 1982 1983 1982 
I st High $51 1/2 $32 $.20 $.20 
Low 41 22 1/4 
2nd High 55 1/2 31 3/4 $.20 $.20 
Low 42 1/2 24 
3rd High 51 5/8 34 $.20 $.20 
Low 36 23 7/8 
4th High 49 3/8 50 3/4 $.20 $.20 
Low 36 1/4 29 
Stock Listed 
Common Stock listed on New York Exchange, Pacific 
Coast Stock Exchange and Midwest Stock Exchange. 
There were 7, 172 stockholders of record as of March 
9, 1984. 
Notice to Stockholders 
Any person who either owns, as of December 31 of the 
year preceding issuance of this annual report, or 
subsequently 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. 
33 
In our opinion, the financial statements referred to above 
present fairly the consolidated financial position of 
Northwest Airlines, Inc. and subsidiaries at December 31. 
1983 and 1982, and the consolidated results of their 
operations and changes in their financial position for each 
of the three years in the period ended December 31, 1983, 
in conformity with generally accepted accounting 
principles applied on a consistent basis. 
Saint Paul, Minnesota 
February 21 , 1 984 
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 such 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 
245.15 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. 
Co-Registrars and Tran sf er Agents 
Norwest Bank Minneapolis, N .A., Minneapolis, MN; 
Norwest Trust Company, New York, NY 
Notice of Annual Meeting 
The 1984 annual shareholders' meeting will be held at 
Northwest Airlines General Offices, Minneapolis/St. Paul 
International Airport, St. Paui , Minnesota, on Monday, 
May 21, 1984 at 9:30 A.M. 
 10 Year Summary* Northwest Airlines, Inc. 
(Dollars in Thousands Except Per Share Figures) 
Years Ended December 3 I 
Operating Revenues 
Passenger 
Freight 
Mail 
Charter and other transportation 
Non transport 
lDTAL OPERATING REVENUES 
Operating Expenses 
Depreciation and amortization 
Other 
TOTAL OPERATING EXPENSES 
Operating income (loss) 
Interest expense 
Other income and (deductions)-net 
Earnings (loss) before taxes 
Income taxes (credit) 
Net Earnings' 
Earnings per average share' 
Cash dividends 
Dividends per share 
Stockholders' equity 
Number of shares outstanding at end of year 
Book value per share at end of year 
Assets and Long-Term Debt 
Flight property at cost 
Flight property at net book value 
Total assets 
Long-term debt 
Unit Expenses 
Per available ton-mile 
Per Revenue ton-mile 
Per cent of operating revenues 
Statistics-Scheduled Services 
Revenue plane-miles (000) 
Available seat-miles (000) 
Revenue passenger-miles (000) 
Passenger load factor 
Revenue passengers carried 
Freight ton-miles (000) 
Total revenue ton-miles (000) 
Statistics-Total Operations 
Revenue plane-miles (000) 
Available ton-miles (000) 
*Not covered by Accountants' Report. 
t Strikes adversely affected 1978 and l 982 . 
1983 
$ 1,812,227 
289,170 
55,585 
36,198 
2,856 
$ 2,196,036 
$ 146,908 
1,980,242 
$ 2,127,150 
$ 68,886 
(3,548) 
8,265 
$ 
$ 
73,603 
23,530 
50,073 
$ 2.19 
17,367 
.80 
854,189 
21,715,995 
$ 39.33 
$ 2,080,299 
 976,501 
1,602,236 
100,000 
40.5 
76.0 
96.9% 
133,699 
29,511,287 
17,711,929 
60.0% 
12,718,468 
835,197 
2,750,946 
134,870 
5,255,086 
1982t 
$ 1,567,986 
205,018 
60,451 
34,758 
9,355 
$ 1,877,568 
$ 136,651 
1,749,292 
$ 1,885,943 
$ (8,375) 
(7,216) 
16,279 
$ 688 
(4,331) 
$ 5,019 
$ .23 
17,332 
.80 
820,605 
21,678,458 
$ 37.85 
$ 1,996,925 
1,019,071 
1,377,387 
40.7 
80.3 
100.4% 
119,189 
26,257,466 
15,675,194 
59.7% 
11,356,165 
600,198 
2,307,475 
120,378 
4,635,415 
'See Financial Highlights pages 16 through 19 for Management's Discussion of the Summary of Operations. 
34 
1981 
$ 1,521,856 
221,691 
59,786 
21,766 
29,191 
$ 1,854,290 
$ 133,489 
1,719,054 
$ 1,852,543 
$ 1,747 
(14,135) 
20,297 
$ 7,909 
(2,551) 
$ 10,460 
$ .48 
17,326 
.80 
832,510 
21,661,367 
$ 38.43 
$ 1,992,015 
1,110,965 
1,492,381 
12,500 
41.0 
83.9 
99.9% 
120,139 
24,813,981 
14,251,932 
57.4% 
11,144,785 
616,285 
2,186,815 
120,761 
4,519,768 
 35 
1980 1979 1978t 1977 1976 1975 1974 
$ 1,347,830 $ 1,067,214 $ 557,401 $ 861,053 $ 786,414 $ 659,849 $ 628,488 
190,837 160,716 87,077 121,185 119,882 88,308 76,157 
57,305 38,685 18,944 29,894 25,137 23,280 22,911 
16,303 15,093 10,997 25,871 25,955 29,019 27,322 
27,055 28,850 115,743 8,352 6,420 107 4,113 
$ 1,639,330 $ 1,310,558 $ 790,162 $ 1,046,355 $ 963,808 $ 800,563 $ 758,991 
$ 124,078 $ 106,401 $ 104,970 $ 103,152 $ 102,713 $ 98,880 $ 96,213 
1,539,386 1,148,805 617,907 838,619 758,147 651,983 584,993 
$ 1,663,464 $ 1,255,206 $ 722,877 $ 941,771 $ 860,860 $ 750,863 $ 681,206 
$ (24,134) $ 55,352 $ 67,285 $ 104,584 $ 102,948 $ 49,700 $ 77,785 
(15,831) (1,635) (3,376) (6,518) (14,035) (16,120) (19,554) 
3,862 30,643 45,126 55,078 9,351 13,509 40,148 
$ (36,103) $ 84,360 $ 109,035 $ 153,144 $ 98,264 $ 47,089 $ 98,379 
(43,187) 11,885 47,194 60,425 46,527 3,693 33,631 
$ 7,084 $ 72,475 $ 61,841 $ 92,719 $ 51,737 $ 43,396 $ 64,748 
$ .33 $ 3.35 $ 2.86 $ 4.29 $ 2.39 $ 2.01 $ 3.00 
17,317 17,306 16,210 10,804 9,707 9,710 9,722 
.80 .80 .75 .50 .45 .45 .45 
839,042 849,122 793,691 747,672 665,744 623,677 589,991 
21,647,280 21,639,589 21,626,284 21,606,686 21,606,036 21,604,136 21,604,136 
$ 38.76 $ 39.24 $ 36.70 $ 34.60 $ 30.81 $ 28.87 $ 27.31 
$ 1,995,168 $ 1,779,770 $ 1,525,442 $ 1,510,447 $ 1,448,402 $ 1,420,670 $ 1,282,556 
1,200,495 1,094,556 922,615 962,957 924,537 977,062 907,935 
1,532,539 ,. 1,528,921 1,392,865 1,299,451 1,151,562 1,215,146 1,121,153 
62,500 100,000 100,000 100,000 122,000 246,000 213,900 
37.0 29.4 27.9 22.9 21.6 20.6 19.9 
80.6 63.4 65.7 54.4 50.5 50.2 48.2 
101.5% 95.8% 91.5% 90.0% 89.3% 93.8% 89.8% 
120,709 116,105 66,420 111,271 108,474 104,104 105,295 
24,904,355 24,028,928 14,302,037 22,968,489 22,228,259 20,910,966 20,016,107 
13,810,889 13,298,161 7,018,305 11,100,412 10,758,683 9,471,282 9,173,875 
55.5% 55.3% 49.1% 48.3% 48.4% 45.3% 45.8% 
11,501,148 11,636,170 6,574,901 10,354,808 9,818,343 8,865,263 8,948,373 
529,434 504,753 302,153 458,143 467,399 386,309 317,437 
2,048,349 1,956,217 1,079,681 1,676,470 1,647,317 1,428,381 1,330,803 
121,243 117,027 67,471 114,643 112,279 107,721 110,519 
4,495,666 4,265,640 2,594,632 4,109,110 3,982,743 3,642,650 3,431,038 
 Directors and Officers of Northwest Orient Airlines 
(As of March 15, 1984) 
36 
Directors 
M. Joseph Lapensky 
Chairman of the Board and Chief Executive Officer 
Northwest Airlines , Inc. 
St. Paul, Minnesota 
James A. Abbott 
Senior Vice President and General Counsel 
Northwest Airlines , Inc. 
St. Paul, Minnesota 
James H. Binger* 
Former Chairman of the Executive Committee 
Honeywell , Inc. 
Minneapolis, Minnesota 
Manufacturer of automation systems 
E. W. Blanch, Jr. * 
President & Chief Executive Officer 
E.W. Blanch Company 
Minneapolis, Minnesota 
Re-insurance brokerage 
Robert A. Charpie* 
President 
Cabot Corporation 
Boston, Massachusetts 
Production of oil and gas products 
Raymond H. Herzog* 
Former Chairman of the Board 
3M Company 
St. Paul, Minnesota 
Multinational manufacturing 
Melvin R. Laird* 
Senior Counselor 
Reader's Digest Association 
Washington, D. C. 
Magazine publishing 
James N. Land , Jr.* 
Financial Consultant 
New York, New York 
Donald G. McNeely* 
Chairman of the Board 
Space Center, Inc. 
St. Paul, Minnesota 
Logistics 
Donald W. Nyrop* 
President and Chief Executive Officer, 1954-1976; 
Chairman and Chief Executive Officer, 1976-1978 
Northwest Airlines, Inc. 
St. Paul , Minnesota 
Steven G. Rothmeier 
President and Chief Operating Officer 
Northwest Ai::lines, Inc. 
St. Paul Minnesota 
*Member, Audit Committee 
Officers 
M. J. Lapensky 
Chairman of the Board and Chief Executive Officer 
Steven G. Rothmeier 
President and Chief Operating Officer 
James A. Abbott 
Senior Vice President and General Counsel 
Bjarnie R. Anderson 
Vice President-Washington 
Brent J. Baskfield 
Vice President-In-Flight Services 
J. W. Campion 
Vice President-Regulatory Proceedings 
Terry M. Erskine 
Vice President-Industrial Relations 
Bruce H. Fillips 
Vice President-Comptroller 
Phillip R. Gossard 
Vice President-Ground Services 
Benjamin G. Griggs, Jr. 
Executive Vice President-Operations 
John F. Horn 
Vice President-Orient Region 
Thomas J. Koors 
Executive.Vice President-Marketing and Sales 
William A. Kutzke 
Vice President-Airline Planning 
Benjamin H. Lightfoot 
Vice President-Maintenance and Engineering 
Thomas E. McGinnity 
Vice President-Purchasing and Stores 
Bryan G. Moon 
Vice President-Advertising 
Walter H. Pemberton 
Vice President-Communications and Computer Services 
James F. Redeske 
Vice President-Personnel Administration 
R. James Thorne 
Vice President-Properties 
Steven D. Wheeler 
Corporate Secretary 
In the past year two long-time veterans of Northwest Airlines have 
retired. Robert J. Glischinski, Vice President-Communications 
and Computer Services, retired after 43 years of dedicated service 
as did Robert W. Campbell, Vice President-Budgets after 39 
years of outstanding service for Northwest Airlines. 
  ~ NORTl-fWEST ORIENT 
orthwe t Orient Airlines World Headquarters: 
Minneapolis-St. Paul International Airport 
St. Pa u I. M 5 5 I l I