Pinnacle Airlines Corp., an operator of regional flights for larger carriers, fell the most in almost three years after saying it will seek to renegotiate debt agreements, flying contracts and union accords to cut costs.
The shares tumbled 23 percent, the biggest daily decline since February 2009, to $1.48 at 3:59 p.m. in New York. They have dropped 81 percent this year.
The airline has begun a “comprehensive program” to boost liquidity, which also calls for reworking terms with lessors and vendors and shuffling management, according to a statement today. Pinnacle said it hired Seabury Group LLC’s consulting division, Barclays Capital and Davis Polk & Wardwell LLP as advisers.
“Pinnacle Airlines Corp. is facing a convergence of events that, if left unaddressed, will make 2012 an extremely challenging year,” Chief Executive Officer Sean Menke said in the statement.
Delta Air Lines Inc. was Memphis, Tennessee-based Pinnacle’s biggest airline partners in 2010, followed by United Continental Holdings Inc. predecessor United Airlines, the company said in its annual report.
Pinnacle has reported losses in each of the past four quarters, and analysts surveyed by Bloomberg project that losses will continue for two more quarters.
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