Northwest Airlines Corporation (NYSE:NWA) announced its first results following its exit from bankruptcy and swung to quick profit as it kept fuel and other costs under control. The airliner reported profit of $244 million, or 93 cents per share, compared to an analyst estimate of just 76 cents per share. Shares on the NYSE rose over two percent in early trading.

Northwest also said it was considering spinning off its frequent flier program in a move that would mirror those being considered by other major airlines including US Airways, AMR Corp, and UAL. Northwest CEO Doug Steenland said in a conference call that separating WorldPerks from the parent company "has the potential for significant value creation".

Many industry analysts believe that any move to spin-off frequent flier programs will come after a much-anticipated wave of airline mergers. Executives are worried bout giving up control over a business that has such close ties to their most loyal and active customers. Delta CEO Richard Anderson said, "Frequent flyer candidly needs to be a post-consolidation sort of decision."

In the end, Northwest has announced great earnings and already returned to profitability. The upcoming wave of consolidation should be nice to Northwest shareholders (assuming they are on the selling end) given this growth while any move to spin-off its frequent flier program could provide a windfall for existing shareholders. Combined, these factors make NWA a stock worth watching!

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