VOL. 126 | NO. 27 | Wednesday, February 9, 2011
Pinnacle Fourth Quarter Numbers To Be Lower Than Expected
By Bill Dries
When Pinnacle Airlines Corp. reports its fourth quarter earnings next week, the diluted earnings per share won’t be up to what analysts thought.
Executives of the Memphis based airline notified the Securities and Exchange Commission Tuesday of the lower than expected earnings report.
In the SEC filing, the company estimates it will report a loss per share of 22 cents to 25 cents.
The company cited three factors including a tentative contract agreement with the Air Line Pilots Association covering all three Pinnacle operating subsidiaries and its $10.9 million one time signing bonus for Pinnacle Airlines Inc. pilots.
Other factors are the delivery of six Q400 aircraft to Colgan Air Inc., another of Pinnacle’s three subsidiaries, that Colgan bought from United Airlines. Three of the six were put into service during the fourth quarter meaning start up costs.
The third factor was the cost of cancelled flights from severe winter weather in December.