Originally Posted by Columbia

Lovely.....

MEMPHIS, Tenn. (AP) -- Pinnacle Airlines posted a third-quarter loss Thursday because of rising compensation costs and other expenses.

The loss was almost $3.5 million, or 19 cents per share, for the quarter that ended Sept. 30. For the same period last year, it had a profit of $9.4 million, or 51 cents per share.

Revenue rose 5.8 percent to $319.8 million, from $302.3 million a year ago.

Pinnacle said its net loss would have been $1.7 million, or 9 cents per share, if not for special items.

Analysts surveyed by FactSet had been expecting a profit of 1 penny per share on revenue of $311.1 million.

Pinnacle, which flies under contract for Delta Air Lines Inc. and other airlines, said it spent $2.9 million during the quarter, most of it on flight attendant bonuses that were awarded under a new labor contract. The expenses also included severance payments.

A new pilot contract that took effect in February boosted pilot expenses by $4.9 million for the quarter. It said it expects to be compensated for those higher costs by way of higher rates to be paid by Delta beginning in mmid-2012.