Pinnacle Airlines (PNCL) 8-K Pinnacle Airlines Corp. Announces 2009 Third Quarter Earnings

Exhibit 99.1

Pinnacle Airlines Corp. Announces 2009 Third Quarter Earnings

Company records Consolidated Earnings per Share excluding nonrecurring items of $0.40

MEMPHIS, TN – November 3, 2009 – Pinnacle Airlines Corp. (NASDAQ: PNCL) (the “Company”) today reported third quarter 2009 net income of $11.4 million and fully diluted earnings per share (“EPS”) of $0.62.  Excluding a gain related to the sale of the Company’s Auction Rate Securities (“ARS”) portfolio, the Company achieved net income and EPS of $7.3 million and $0.40, respectively, in the third quarter of 2009.  This represents increases of 6% and 5%, respectively, over net income of $6.9 million and EPS of $0.38 in the third quarter of 2008 (excluding certain special items).  The Company reported consolidated operating income of $23.8 million in the third quarter of 2009, an increase of 13% over consolidated operating income of $21.1 million in the third quarter of 2008, excluding special items.

“Once again, our People at Colgan Air and Pinnacle Airlines have delivered consistent financial performance for our shareholders, despite the many challenges facing our industry today,” said Phil Trenary, the Company’s President and Chief Executive Officer.  “I offer my thanks to all of our People for the outstanding job they perform day in and day out.”

For the nine months ended September 30, 2009, the Company reported net income of $36.2 million and EPS of $2.01.  In addition to the gain on the sale of the Company’s ARS portfolio recorded during the third quarter, the Company’s year-to-date financial results include a number of previously announced special items that increased net income by $14.9 million.  These nonrecurring items, along with special items that occurred in 2008, are listed in the attached table “Reconciliation of Non-GAAP Disclosures.”  Excluding these special items, the Company achieved net income of $17.6 million for the nine months of 2009, an increase of 51% over net income of $11.7 million year-to-date in 2008.  Year-to-date 2009 EPS excluding these nonrecurring items was $0.97, an increase of 49% over EPS of $0.65 year-to-date in 2008.

Recent Significant Financial Events

The Company completed a number of transactions during the third quarter of 2009 to increase its liquidity in preparation for the first quarter of 2010 when holders of its remaining outstanding 3.25% senior convertible notes (the “Notes”) may require the Company to repurchase the Notes.  These transactions included the following:

-- The Company completed a $25 million, three-year term loan financing with C.I.T. Leasing secured by its pool of spare rotable and expendable aircraft parts.  The interest rate for this financing is a variable rate indexed to LIBOR and was 8.5% at September 30, 2009.

-- The Company sold its portfolio of ARS as part of a settlement with a financial institution.  After repayment of a related credit facility, the Company netted an additional $27 million in cash proceeds from the sale.  In addition, the Company received options to repurchase the ARS at any time during the next three years should the market for ARS become more liquid.  The Company recorded a net gain of $4.2 million on the settlement.  The Company has recorded the options as an asset at their fair value of $4.1 million at September 30, 2009.  The Company will record in earnings any change in the fair value of its unexercised options each quarter during the three-year term of the options.

-- The Company repurchased approximately $78 million par value of the Notes at a purchase price of $75 million.  After completion of this purchase, approximately $31 million par amount of the Notes remains outstanding.

“We laid out a number of liquidity objectives at the beginning of the year, and I’m pleased to report that we’ve made great strides in accomplishing them,” said Peter Hunt, the Company’s Chief Financial Officer.  “We have made tremendous progress in deleveraging our balance sheet and increasing our liquidity.”

1

Third Quarter 2009 Financial and Operating Results

During the third quarter of 2009, Pinnacle Airlines, Inc. (“Pinnacle”), the Company’s regional jet operating subsidiary, completed 106,802 block hours and 71,002 departures, a decrease and increase of (1)% and 6%, respectively, over the same period in 2008.  Capacity increases associated with Pinnacle’s new CRJ-900 aircraft fleet operating under the Delta Connection Agreement (“DCA”) were partially offset by a (1)% decrease in the average number of CRJ-200 aircraft as compared to 2008.  In addition, Pinnacle has experienced a (5)% decrease in aircraft utilization of its fleet, primarily from route network changes resulting in shorter average flights.  Colgan Air, Inc. (“Colgan”), the Company’s regional turboprop operating subsidiary, completed 36,255 block hours and 29,332 departures during the third quarter, decreases of (16)% and (15)%, respectively, over the same period in 2008.  The decrease in operations is primarily related to the retirement of seven Saab and Beech aircraft in conjunction with eliminating certain markets operated under the Company’s pro-rate agreements. Also contributing to this decrease was a reduction of one Q400 aircraft in Colgan’s fleet during the three months ended September 30, 2009 as compared to the same period in 2008.

The Company recorded consolidated operating revenue during the third quarter of 2009 of $217.2 million, a decrease of $4.6 million, or 2%, over the same period in 2008. This decrease is primarily related to a reduction in Colgan’s pro-rate operations and the decrease in Pinnacle’s capacity noted above.  Consolidated operating income was $23.8 million for the third quarter of 2009.  Consolidated operating income for the third quarter of 2008 was approximately $21.1 million, excluding nonrecurring items.  Pinnacle reported third quarter 2009 operating income and an operating margin of $15.7 million and 10.1%, respectively, an increase of $3.7 million and 2.0 points, respectively, from the third quarter of 2008.  Increases in Pinnacle’s operating income related to its new CRJ-900 operations were partially offset by unit cost increases related to salaries, wages and benefits and maintenance.

Colgan reported operating income and an operating margin of $8.1 million and 13.1%, a decrease of $1.0 million and 0.7 points, respectively, from the third quarter of 2008, excluding nonrecurring items.  Colgan’s unit revenue in its pro rate operations declined by (4)% due to the current economic conditions.  Offsetting this decline in unit revenue, Colgan’s average fuel cost per gallon decreased (44)% during the quarter, as compared to 2008.  During the third quarter of 2009, Colgan also accelerated the amortization of certain slots that it plans to vacate in early 2010, increasing depreciation and amortization by $0.6 million.  In addition, Colgan recorded a one-time reduction of maintenance expense of $1.4 million in the third quarter of 2008 related to the adjustment of certain maintenance accruals.

Net nonoperating expense was $7.4 million for the third quarter of 2009, including the previously discussed $4.2 million net investment gain related to the Company’s ARS portfolio.  Net nonoperating expense for the same period in 2008 was $11.3 million.  Interest expense for the third quarter was $12.0 million, a decrease of $0.8 million from the third quarter of 2008.  Interest income decreased by $1.0 million, primarily from a decrease in interest rates earned on invested assets.  Interest expense includes $2.1 million and $2.5 million of additional expense for the third quarter of 2009 and 2008 related to the Company’s previously disclosed adoption of a new accounting standard, which resulted in a change in the Company’s accounting for the Notes.  Prior year amounts have been restated to reflect the new accounting standard.  The effect of this change was a non-cash reduction to EPS of $0.06 and $0.08 for the third quarter of 2009 and 2008, respectively.

Cash and Cash Equivalents

The Company ended the quarter with $81.2 million in unrestricted cash and cash equivalents.  The Company generated $21.2 million in cash and cash equivalents from operating activities during the third quarter of 2009.  Net cash provided by investing activities for the three months ended September 30, 2009 was $24.8 million, primarily resulting from the Company’s sale of its ARS portfolio.  Net cash used in financing activities for the three months ended September 30, 2009 totaled $59.0 million, comprised of $75 million used to repurchase a portion of the Notes and $8.2 million of scheduled principal payments on long-term debt obligations, partially offset by $24.2 million in net proceeds received from its term loan with C.I.T. Leasing.

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About Pinnacle Airlines Corp.

Pinnacle Airlines Corp., an airline holding company, is the parent company of Pinnacle Airlines, Inc. and Colgan Air, Inc.  Pinnacle Airlines, Inc. operates under Delta brands and operates 126 CRJ-200 and 16 CRJ-900 regional jet aircraft throughout the United States and in the District of Columbia, Belize, Mexico, Turks and Caicos Islands, the U.S. Virgin Islands and three Canadian provinces. Colgan Air, Inc. operates as Continental Connection, United Express and US Airways Express and operates a fleet of 14 Q400 and 34 Saab aircraft throughout the United States and Canada.  For further information about the Company, please refer to the Company’s Form 10-Q for the three months ended September 30, 2009, which will be filed with the SEC shortly.

Non-GAAP Disclosures

This release and certain tables accompanying this release include certain financial information not prepared in accordance with generally accepted accounting principles ("GAAP"), Colgan’s operating income, Colgan’s operating margin, the Company's operating income, operating margin, pre-tax income, net income and EPS for the three and nine months ended September 30, 2009 and 2008, excluding nonrecurring items related to aircraft retirement charges, the excess of property insurance proceeds over cost basis of aircraft, net investment gains and losses, ineffective portion of cash flow hedge, reversal of income tax reserves and related accrued interest, and the gain on debt extinguishment. The Company believes that this information is useful to investors as it indicates more clearly the Company's comparative year-to-year results. None of this information should be considered a substitute for any measures prepared in accordance with GAAP. The Company has included its reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measures in the accompanying schedules.

Forward-Looking Statements

This press release contains various forward-looking statements that are based on management's beliefs, as well as assumptions made by and information currently available to management. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct.  Such statements are subject to certain risks, uncertainties and assumptions, including those set forth in our filings with the Securities and Exchange Commission, which are available to investors at our website or online from the Commission.  Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove erroneous, actual results may vary materially from results that were anticipated or projected. The Company does not intend to update these forward-looking statements before its next required filing with the Securities and Exchange Commission.

For further information, please contact Joe Williams, at (901) 346-6162, or visit our website at www.pncl.com.

###

3

Pinnacle Airlines Corp.

Condensed Consolidated Statements of Operations (Unaudited)

(in thousands, except per share data)

	Three Months Ended September 30,
	2009			2008
				(Restated)
Operating revenues
Regional airline services	$	214,478		$	220,242
Other		2,730			1,550
Total operating revenues		217,208			221,792
Operating expenses
Salaries, wages and benefits		55,402			56,378
Aircraft rentals		30,093			31,411
Ground handling services		21,964			21,651
Aircraft maintenance, materials and repairs		25,311			20,612
Other rentals and landing fees		17,659			19,369
Aircraft fuel		6,197			14,831
Commissions and passenger related expense		5,660			7,183
Depreciation and amortization		9,377			7,586
Other		21,749			21,692
Impairment and aircraft retirement charges		-			1,069
Total operating expenses		193,412			201,782
Operating income		23,796			20,010
Operating income as a percentage of operating revenues		11.0	%		9.0	%
Nonoperating (expense) income
Interest income		277			1,289
Interest expense		(11,989	)		(12,758	)
Investment gain		4,233			-
Miscellaneous income, net		101			192
Total nonoperating expense		(7,378	)		(11,277	)
Income before income taxes		16,418			8,733
Income tax expense		(5,041	)		(2,526	)
Net income	$	11,377		$	6,207
Basic earnings per share	$	0.63		$	0.35
Diluted earnings per share	$	0.62		$	0.35
Shares used in computing basic earnings per share		17,970			17,867
Shares used in computing diluted earnings per share		18,204			17,891

4

Pinnacle Airlines Corp.

Condensed Consolidated Statements of Operations (Unaudited)

(in thousands, except per share data)

	Nine Months Ended September 30,
	2009			2008
				(Restated)
Operating revenues
Regional airline services	$	629,614		$	640,414
Other		6,679			6,873
Total operating revenues		636,293			647,287
Operating expenses
Salaries, wages and benefits		167,999			165,582
Aircraft rentals		90,679			97,439
Ground handling services		70,622			72,712
Aircraft maintenance, materials and repairs		74,800			66,261
Other rentals and landing fees		53,987			52,123
Aircraft fuel		15,968			41,603
Commissions and passenger related expense		15,714			21,438
Depreciation and amortization		26,740			18,566
Other		54,890			68,614
Impairment and aircraft retirement charges		1,980			13,688
Total operating expenses		573,379			618,026
Operating income		62,914			29,261
Operating income as a percentage of operating revenues		9.9	%		4.5	%
Nonoperating (expense) income
Interest income		1,942			5,326
Interest expense		(34,712	)		(31,194	)
Investment gain (loss)		3,944			(8,675	)
Miscellaneous income, net		445			166
Total nonoperating expense		(28,381	)		(34,377	)
Income (loss) before income taxes		34,533			(5,116	)
Income tax benefit (expense)		1,680			(355	)
Net income (loss)	$	36,213		$	(5,471	)
Basic earnings (loss) per share	$	2.02		$	(0.31	)
Diluted earnings (loss) per share	$	2.01		$	(0.31	)
Shares used in computing basic earnings (loss) per share		17,968			17,864
Shares used in computing diluted earnings (loss) per share		18,050			17,864

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Pinnacle Airlines Corp.

Condensed Consolidated Balance Sheets

(in thousands, except share data)

	September 30, 2009			December 31, 2008
Assets	(Unaudited)			(Restated)
Current assets
Cash and cash equivalents	$	81,211		$	69,469
Restricted cash		4,158			5,417
Receivables, net		33,486			31,619
Spare parts and supplies, net		18,570			17,106
Prepaid expenses and other assets		6,157			8,160
Assets held for sale		1,020			2,786
Deferred income taxes, net of allowance		10,058			13,908
Income taxes receivable		34,186			31,117
Total current assets		188,846			179,582
Property and equipment
Flight equipment		754,274			721,499
Aircraft pre-delivery payments		10,022			5,721
Other property and equipment		47,336			46,218
Less accumulated depreciation		(77,954	)		(53,507	)
Net property and equipment		733,678			719,931
Investments		4,078			116,900
Deferred income taxes, net of allowance		-			40,847
Other assets		319,726			33,724
Debt issuance costs, net		3,737			3,711
Goodwill		18,422			18,422
Intangible assets, net		12,784			14,585
Total assets	$	1,281,271		$	1,127,702
Liabilities and stockholders’ equity
Current liabilities
Current maturities of long-term debt	$	35,918		$	32,116
Bank line of credit		-			8,275
Senior convertible notes		29,853			10,754
Pre-delivery payment facility		-			4,075
Accounts payable		20,748			30,431
Deferred revenue		24,363			23,851
Accrued expenses and other current liabilities		59,131			74,669
Total current liabilities		170,013			184,171
Senior convertible notes		-			97,683
Noncurrent pre-delivery payment facility		4,910			-
Long-term debt, less current maturities		529,045			502,741
Credit facility		-			90,000
Deferred revenue, net of current portion		182,464			192,191
Deferred income taxes, net of allowance		4,191			-
Other liabilities		295,214			5,182
Commitments and contingencies
Stockholders’ equity
Common stock, $0.01 par value; 40,000,000 shares authorized; 22,792,426 and 22,514,782 shares issued, respectively		228			225
Treasury stock, at cost, 4,450,092 shares		(68,152	)		(68,152	)
Additional paid-in capital		120,838			119,610
Accumulated other comprehensive loss		(14,916	)		(17,172	)
Retained earnings		57,436			21,223
Total stockholders’ equity		95,434			55,734
Total liabilities and stockholders’ equity	$	1,281,271		$	1,127,702

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Pinnacle Airlines Corp.

Condensed Consolidated Statements of Cash Flows (Unaudited)

 (in thousands)

	Nine Months Ended September 30,
	2009			2008
Cash provided by operating activities	$	83,982		$	13,827
Cash provided by investing activities		24,325			25,538
Cash used in financing activities		(96,565	)		(2,321	)
Net increase in cash and cash equivalents		11,742			37,044
Cash and cash equivalents at beginning of period		69,469			26,785
Cash and cash equivalents at end of period	$	81,211		$	63,829

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Pinnacle Airlines Corp.

Pinnacle Operating Statistics (Unaudited)

	Three Months Ended September 30,									Nine Months Ended September 30,
	2009			2008			Change			2009			2008			Change
Other Data:
Revenue passengers (in thousands)		2,953			2,619			13	%		8,116			7,770			4	%
Revenue passenger miles (“RPMs”)    (in thousands)		1,203,519			1,236,067			(3	)%		3,504,903			3,622,776			(3	)%
Available seat miles (“ASMs”)    (in thousands)		1,508,956			1,598,929			(6	)%		4,638,257			4,715,054			(2	)%
Passenger load factor		79.8	%		77.3	%	2.5 pts.				75.6	%		76.8	%	(1.2) pts.
Operating revenue per ASM (in cents)		10.29			9.27			11	%		10.03			9.72			3	%
Operating cost per ASM (in cents)		9.25			8.51			9	%		9.02			8.88			2	%
Operating revenue per block hour	$	1,454		$	1,376			6	%	$	1,442		$	1,381			4	%
Operating cost per block hour	$	1,307		$	1,265			3	%	$	1,298		$	1,261			3	%
Block hours		106,802			107,632			(1	)%		322,517			331,744			(3	)%
Departures		71,002			66,779			6	%		206,458			200,568			3	%
Average daily utilization (block hours)		8.29			8.74			(5	)%		8.36			8.91			(6	)%
Average stage length (miles)		404			465			(13	)%		427			462			(8	)%
Number of operating aircraft    (end of period)
CRJ-200		126			124			2	%
CRJ-900		16			11			45	%
Employees (end of period)		3,903			4,164			(6	)%

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Pinnacle Airlines Corp.

Colgan Operating Statistics (Unaudited)

	Three Months Ended September 30,									Nine Months Ended September 30,
	2009			2008			Change			2009			2008			Change
Pro-rate Agreements:
Revenue passengers (in thousands)		332			356			(7	)%		885			1,082			(18	)%
RPMs (in thousands)		58,486			65,192			(10	)%		154,100			197,977			(22	)%
ASMs (in thousands)		122,642			146,997			(17	)%		348,434			446,643			(22	)%
Passenger load factor		47.7	%		44.3	%	3.4 pts.				44.2	%		44.3	%	(0.1) pts.
Passenger yield (in cents)		73.75			82.26			(10	)%		75.16			77.76			(3	)%
Operating revenue per ASM (in cents)		35.17			36.48			(4	)%		33.24			34.47			(4	)%
Operating revenue per block hour	$	1,786		$	1,804			(1	)%	$	1,683		$	1,675			0	%
Block hours		24,152			29,722			(19	)%		68,836			91,888			(25	)%
Departures		21,273			25,679			(17	)%		60,911			77,147			(21	)%
Fuel consumption    (in thousands of gallons)		2,935			3,918			(25	)%		8,340			11,535			(28	)%
Average price per gallon	$	2.11		$	3.79			(44	)%	$	1.91		$	3.61			(47	)%
Average fare	$	130		$	151			(14	)%	$	131		$	142			(8	)%

Capacity Purchase Agreement:
Revenue passengers (in thousands)		427			394			8	%		1,161			770			51	%
RPMs (in thousands)		122,312			109,687			12	%		325,113			214,582			52	%
ASMs (in thousands)		169,371			175,823			(4	) %		476,134			325,365			46	%
Passenger load factor		72.2	%		62.4	%	9.8 pts.				68.3	%		66.0	%	2.3 pts.
Operating revenue per ASM (in cents)		11.00			11.36			(3	) %		11.55			10.74			8	%
Operating revenue per block hour	$	1,540		$	1,504			2	%	$	1,547		$	1,413			9	%
Block hours		12,103			13,282			(9	) %		35,563			24,741			44	%
Departures		8,059			8,641			(7	) %		23,193			15,927			46	%

Total Colgan:
Block hours		36,255		43,004	(16	)%		104,399		116,629	(10	)%
Departures		29,332		34,320	(15	)%		84,104		93,074	(10	)%
ASMs (in thousands)		292,013		322,820	(10	)%		824,568		772,008	7	%
Total operating cost per ASM (in cents)		18.44		20.34	(9	)%		18.77		25.85	(27	)%
Total operating cost per ASM (in cents)    (excluding impairment and aircraft      lease return costs)		18.44		20.01	(8	)%		18.53		24.07	(23	)%
Total operating cost per block hour	$	1,485	$	1,527	(3	)%	$	1,483	$	1,711	(13	)%
Total operating cost per block hour    (excluding impairment and      aircraft lease return costs)	$	1,485	$	1,502	(1	)%	$	1,464	$	1,593	(8	)%
Average daily utilization (block hours)		8.21		7.88	4	%		7.89		7.56	4	%
Average stage length (miles)		224		221	1	%		221		209	6	%
Number of operating aircraft    (end of period)
Saab 340		34		37	(8	)%
Beech 1900		-		4	(100	)%
Q400		14		15	(7	) %
Employees		1,326		1,389	(5	)%

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Pinnacle Airlines Corp.

Reconciliation of Non-GAAP Disclosures (Unaudited)

(in thousands, except per share data)

	Three Months Ended September 30,
	2009			2008			$ change				% change
GAAP Colgan operating income	$	8,110		$	7,994		$	116				1	%
Impairment and aircraft retirement charges		-			1,069			(1,069	)			N/A
Non-GAAP Colgan operating income	$	8,110		$	9,063		$	(953	)			(11	)%
GAAP Colgan operating margin		13.1	%		10.9	%		2.2		pts.
Impairment and aircraft retirement charges		-			1.5	%		(1.5	)	pts.
Non-GAAP Colgan operating margin		13.1	%		12.4	%		0.7		pts.
GAAP operating income	$	23,796		$	20,010		$	3,786				19	%
Impairment and aircraft retirement charges		-			1,069			(1,069	)			N/A
Non-GAAP operating income	$	23,796		$	21,079		$	2,717				13	%
GAAP operating margin		11.0	%		9.0	%		2.0		pts.
Impairment and aircraft retirement charges		-			0.5	%		(0.5	)	pts.
Non-GAAP operating margin		11.0	%		9.5	%		1.5		pts.
GAAP pre tax income	$	16,418		$	8,733		$	7,685				88	%
Impairment and aircraft retirement charges		-			1,069			(1,069	)			N/A
Net investment gain		(4,233	)		-			(4,233	)			N/A
Non-GAAP pre-tax income	$	12,185		$	9,802		$	2,383				24	%
GAAP net income	$	11,377		$	6,207		$	5,170				83	%
Impairment and aircraft retirement charges, net of tax		-			674			(674	)			N/A
Net investment gain, net of tax		(4,054	)		-			(4,054	)			N/A
Non-GAAP net income	$	7,323		$	6,881		$	442				6	%
GAAP EPS	$	0.62		$	0.35		$	0.27				77	%
Impairment and aircraft retirement charges, net of tax		-			0.03			(0.03	)			N/A
Net investment gain, net of tax		(0.22	)		-			(0.22	)			N/A
Non-GAAP EPS	$	0.40		$	0.38		$	0.02				5	%

10

Pinnacle Airlines Corp.

Reconciliation of Non-GAAP Disclosures (Unaudited)

(in thousands, except per share data)

	Nine Months Ended September 30,
	2009			2008			$ change				% change
GAAP Colgan operating income (loss)	$	16,332		$	(10,491	)	$	26,823				(256	)%
Impairment and aircraft retirement charges		1,980			13,688			(11,708	)			(86	)%
Excess of property insurance proceeds over cost    basis of aircraft		(835	)		-			(835	)			N/A
Non-GAAP Colgan operating income	$	17,477		$	3,197		$	14,280				447	%
GAAP Colgan operating margin		9.5	%		(5.5	)%		15.0		pts.
Impairment and aircraft retirement charges		1.2	%		7.2	%		(6.0	)	pts.
Excess of property insurance proceeds over cost    basis of aircraft		(0.5	)%		-			(0.5	)	pts.
Non-GAAP Colgan operating margin		10.2	%		1.7	%		8.5		pts.
GAAP operating income	$	62,914		$	29,261		$	33,653				115	%
Impairment and aircraft retirement charges		1,980			13,688			(11,708	)			(86	)%
Excess of property insurance proceeds over cost    basis of aircraft		(835	)		-			(835	)			N/A
Non-GAAP operating income	$	64,059		$	42,949		$	21,110				49	%
GAAP operating margin		9.9	%		4.5	%		5.4		pts.
Impairment and aircraft retirement charges		0.3	%		2.1	%		(1.8	)	pts.
Excess of property insurance proceeds over cost    basis of aircraft		(0.1	)%		-			(0.1	)	pts.
Non-GAAP operating margin		10.1	%		6.6	%		3.5		pts.
GAAP pre-tax income (loss)	$	34,533		$	(5,116	)	$	39,649				(775	)%
Impairment and aircraft retirement charges		1,980			13,688			(11,708	)			(86	)%
Excess of property insurance proceeds over cost    basis of aircraft		(835	)		-			(835	)			N/A
Net investment (gain) loss		(3,944	)		8,675			(12,619	)			(145	)%
Ineffective portion of hedge		1,424			-			1,424				N/A
Reversal of interest on tax reserves		(2,926	)		-			(2,926	)			N/A
Gain on debt extinguishment		(1,857	)		-			(1,857	)			N/A
Non-GAAP pre-tax income	$	28,375		$	17,247		$	11,128				65	%
GAAP net income (loss)	$	36,213		$	(5,471	)	$	41,684				(762	)%
Impairment and aircraft retirement charges, net of tax		1,280			8,828			(7,548	)			(86	)%
Excess of property insurance proceeds over cost    basis of aircraft, net of tax		(540	)		-			(540	)			N/A
Net investment (gain) loss, net of tax		(3,777	)		8,309			(12,086	)			(145	)%
Ineffective portion of hedge, net of tax		921			-			921				N/A
Reversal of interest on tax reserves, net of tax		(1,849	)		-			(1,849	)			N/A
Gain on debt extinguishment, net of tax		(1,122	)		-			(1,122	)			N/A
IRS settlement		(13,551	)		-			(13,551	)			N/A
Non-GAAP net income	$	17,575		$	11,666		$	5,909				51	%
GAAP EPS	$	2.01		$	(0.31	)	$	2.32				(748	)%
Impairment and aircraft retirement charges, net of tax		0.07			0.49			(0.42	)			(86	)%
Excess of property insurance proceeds over cost    basis of aircraft, net of tax		(0.03	)		-			(0.03	)			N/A
Net investment (gain) loss, net of tax		(0.21	)		0.47			(0.68	)			(145	)%
Ineffective portion of hedge, net of tax		0.05			-			0.05				N/A
Reversal of interest on tax reserves, net of tax		(0.11	)		-			(0.11	)			N/A
Gain on debt extinguishment, net of tax		(0.06	)		-			(0.06	)			N/A
IRS settlement		(0.75	)		-			(0.75	)			N/A
Non-GAAP EPS	$	0.97		$	0.65		$	0.32				49	%

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