Hit by winter storms, cancellations and labor costs, Pinnacle Airlines (NASDAQ:PNCL) said on Thursday that it swung to a loss in the fourth quarter over a year ago profit, sending its shares tumbling.
The Memphis-based company posted a net loss of $4.2 million, or 23 cents a share, compared with a profit of $5.6 million, or 31 cents a share, in the same quarter last year.
Continue Reading Below
Earnings were negatively impacted by costs related to the inclusion of six Q400 aircraft to Pinnacle subsidiary Colgan Air's fleet. The company’s workforce jumped 17% on the new fleet, lifting labor and training expenses.
Financial results were also impacted by winter storms in December, which led to a higher percentage of cancelled flights during the period.
Excluding these one-time charges and others related to a $10.9 million signing bonus and payroll taxes, the company earned 14 cents a share, narrowly below average analyst estimates polled by Thomson Reuters of 17 cents.
"We had a challenging fourth quarter," Pinnacle CEO Philip Trenary said in a statement.
Revenue for the independent regional airline was $291.6 million, up from $209.2 million a year ago, missing the Street’s view of $296.84 million.