Posted on: 04 May 2010 by Mark Howells
Pinnacle Airlines Corporation (PNCL) has reported first quarter 2010 net income of $1.7 million – down from the $2.7 million net income recorded in the first quarter of 2009 – excluding special items.
Major winter storms during 1Q10 had a severe impact on the financial and operating results of the company’s two operating subsidiaries, primarily causing the year-over-year decline in earnings.
"Our first quarter operations were dramatically affected by major winter snowstorms throughout our network, similar to many carriers in the industry," said Phil Trenary, the Corporation’s president and CEO. "The tough weather conditions adversely impacted our earnings results for our shareholders. However, I am proud of the way our people at Pinnacle and Colgan managed through the severe winter weather. We are well positioned for strong operating performance in the second quarter of 2010."
"We are extremely pleased with the progress we’ve made to strengthen our balance sheet over the past twelve months," noted CFO Peter Hunt. "Our total debt has been reduced by approximately $180 million since the beginning of 2009, yet our total liquidity remains strong."
PNCL recorded 1Q10 consolidated operating revenue of $208.1 million, an increase of $0.3 million over 1Q09. Annual rate increases from the company’s partners, as well as higher reimbursable costs, contributed to the net increase in consolidated operating revenue. These increases were offset by reductions in operations from the weather and reduced capacity, and by a $1.0 million estimate of performance related penalties under the company’s CRJ200 operating agreement with Delta Air Lines. Pinnacle’s operating performance levels were below standards established in this agreement, primarily due to the inclement weather during the first quarter.