Pinnacle's dismal 3Q with USD13m negative swing continues poor outlook for regionals

The impact of the changes in legacy-regional relationships, illustrated in stark relief by SkyWest Airlines on 02-Nov-2011, was shown again on 03-Nov-2011 when Pinnacle Airlines Corp posted a third quarter loss of USD3.5 million. The loss was a USD13 million swing from 3Q2010 when it earned USD9.4 million. It also projected a loss in the fourth quarter, with expectations for a loss in 2012.

Projections had expected a profit on USD317-328 million in revenues. It did meet revenue expectations posting consolidated operating revenue of USD319.8 million, a 5.8% increase largely owing to the increase in Q400 operations as well as a year-on-year increase in United Express rates.