Covenant posts smaller 1Q net loss

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Covenant Transportation Group on Wednesday, April 25, announced freight revenue of $121.9 million for the quarter ended March 31, a decrease of 2.0 percent compared with the first quarter of 2011; operating income of $2.4 million and an operating ratio of 98.1 percent compared with operating income of $0.3 million and an operating ratio of 99.8 percent; and a net loss of $0.6 million compared with a net loss of $2.5 million.

“During the quarter, freight demand was reasonably good, and customers continued to express concern about accessing adequate truckload capacity during the upcoming seasonally stronger months of the year,” said David Parker, chairman, president and chief executive officer of the Chattanooga, Tenn.-based company. “Continued progress on yield improvement and efficiency will be necessary as our industry faces cost pressure from driver wages, fuel and equipment prices, insurance and health care, and other expenses, as well as utilization pressure from regulatory and other sources.”