Northwest Airlines reported a first-quarter net loss of USD$1.1 billion on Wednesday, hurt by reorganization costs and rising fuel prices.

Northwest, which filed for bankruptcy in September, said the USD$1.1 billion loss compared with a net loss of USD$537 million a year ago.

Excluding reorganization and other costs, the carrier said it lost USD$129 million in the first quarter, compared with a loss of USD$450 million in the year-ago quarter.

The airline said it spent USD$975 million on reorganization items and that its fuel prices rose 35.6 percent.

"Northwest, like other airlines, is concerned about the impact of high fuel costs," Chief Financial Officer Neal Cohen said in a statement. "Every dollar per barrel (of oil) increase impacts Northwest's fuel costs by USD$43 million annually."

The airline industry has been battered by soaring fuel costs and low-fare competition that makes it hard for carriers to raise ticket prices enough to cover costs.

Northwest, in bankruptcy alongside rival Delta Air Lines, aims to cut costs by USD$2.5 billion annually. The airline's operating expenses in the quarter decreased 6.3 percent year-over-year to USD$2.9 billion.

During the first quarter, fuel averaged USD$1.87 per gallon, excluding taxes, an increase of 35.6 percent over the same period in 2005, Northwest said.

Increased fuel prices were partially offset by 12.7 percent fewer gallons consumed as a result of the company's capacity reductions and the retirement or replacement of older aircraft.

Northwest reduced its capacity -- the number of seats it puts up for sale -- by 10.8 percent in the first quarter, compared with the same period a year earlier.

Northwest said operating revenue rose 3.3 percent to USD$2.9 billion. The carrier ended the quarter with USD$1.28 billion in unrestricted cash and short-term investments.