Pinnacle Airlines Corp. today reported net income for 2007 of $34.6 million down from $77.7 million in 2006. Pinnacle achieved a full-year operating margin of 9.5 percent, while Colgan, acquired in January 2007, recorded a negative operating margin of 2.3 percent for 2007. In addition, Pinnacle recorded $2.9 million in performance penalties related to the first half of 2007. The company also reported fourth quarter 2007 net income and fully diluted earnings per share of $6.7 million and $0.32, respectively, excluding a potential one-time, non-cash charge that the company is analyzing. The company's net income and EPS were $12.3 million and $0.56, respectively, for the fourth quarter of 2006, excluding nonrecurring items. The 2007 financial results reflect the contractual changes in its Pinnacle/Northwest contract that became effective January 1, 2007. The company is analyzing a potential one-time, non-cash charge related to its deferred tax liability. The potential adjustment could reduce 2007 net income by approximately $7.4 million. For a complete analysis see the next issue of Regional Aviation News.