Pinnacle Airlines Corp. Reports 2008 Full Year and Fourth Quarter Financial Results

Market Wire, March, 2009

Pinnacle Airlines Corp. (NASDAQ: PNCL) (the "Company") today reported its fourth quarter and full year 2008 results of operations. Prior to reviewing the Company's financial results, the People of Pinnacle Airlines Corp. wish to acknowledge the terrible tragedy of flight 3407. Fifty individuals perished in the crash of flight 3407 on February 12, 2009.

"On behalf of our senior management team and the entire Pinnacle Airlines Corp. family, I want to again express our deepest sympathies to the families of the passengers and crew members of flight 3407 and to those affected on the ground," said Philip Trenary, the Company's President and Chief Executive Officer. "We are all profoundly saddened by this terrible accident."

Company Reports Consolidated Fourth Quarter 2008 Operating Income of $16.3 Million

The Company reported fourth quarter 2008 net income of $4.0 million and fully diluted earnings per share ("EPS") of $0.22, excluding an $8.1 million ($7.8 million net of tax) special charge related to impairment of its auction rate securities ("ARS") portfolio. Including this charge, the Company reported a net loss of $3.8 million and a net loss per share of $0.21 for the fourth quarter of 2008. The Company reported net income and EPS of $6.7 million and $0.32, respectively, for the fourth quarter of 2007.

The Company's consolidated operating income during the fourth quarter of 2008 was $16.3 million, an increase of 73% over the fourth quarter of 2007. During the fourth quarter of 2008, Pinnacle Airlines, Inc. ("Pinnacle"), the Company's regional jet operating subsidiary, reported operating income and an operating margin of $13.8 million and 9.0%, respectively, while Colgan Air, Inc. ("Colgan"), the Company's regional turboprop operating subsidiary, reported operating income and an operating margin of $2.5 million and 4.0%, respectively.

The Company's consolidated net income for the full year 2008 excluding special charges was $19.9 million. During 2008, the Company recorded a special charge of $13.5 million ($8.7 million net of taxes) related to the impairment of goodwill and aircraft lease return costs associated with the restructuring of Colgan's pro-rate operations. In addition, the Company recorded charges totaling $16.8 million ($16.1 million net of taxes) related to the impairment of its ARS portfolio. Including these charges, the Company recorded a net loss and net loss per share of $4.9 million and $0.27, respectively, for 2008. In 2007, the Company reported net income and EPS of $37.3 million and $1.61, respectively, excluding special items.

Recent Financial Accomplishments

-- During January 2009 the Company repurchased $12 million par amount of its 3.25% convertible notes due 2025 (the "Notes") for a purchase price of approximately $9 million. This reduces the Company's potential obligation in February 2010, when the holders of the Notes have an option to require the Company to redeem the Notes at par. The Company continues to evaluate financing alternatives to raise additional capital in 2009, and may purchase additional Notes prior to the February 2010 optional redemption date.

-- The Company has finalized the amount of its 2008 federal income tax refund and expects to receive approximately $31 million in April 2009. This tax refund will further improve the Company's liquidity.

-- In January 2009, Colgan and Continental Airlines agreed to expand their relationship whereby Colgan will acquire and operate an additional 15 Q400 aircraft under its capacity purchase agreement with Continental (the "CPA"). Colgan is scheduled to take delivery of these aircraft from August 2010 through April 2011. Colgan also secured from Bombardier options to purchase an additional 15 Q400 aircraft with delivery dates beginning in March 2013. These options are reserved exclusively for Continental. In connection with this aircraft order, the Company has also arranged for a commitment from a lender to finance the 2010 and 2011 aircraft deliveries on terms substantially similar to the financing arrangements for its existing Q400 fleet. This arrangement includes a commitment to finance most pre-delivery payments. All of the Company's payment obligations through April 2010 associated with this aircraft order have been financed.

-- In December 2008, Pinnacle took delivery of three CRJ-900 aircraft to be operated under its Delta Connection Agreement (the "DCA") with Delta Air Lines. These aircraft went into service under the DCA during the first quarter of 2009. With the addition of these three aircraft, Pinnacle now operates 14 permanent CRJ-900 aircraft under the DCA. Pinnacle expects to take delivery of the remaining two CRJ-900 aircraft and place them into service under the DCA during the second quarter of 2009. In January, Pinnacle also began returning to Delta the seven CRJ- 900 aircraft that it has temporarily operated under the DCA. These seven aircraft will be fully transitioned back to Delta during the second quarter of 2009, at which time Pinnacle will operate its permanent fleet of 16 CRJ-900 aircraft under the DCA.