Kansas City, MO—Vanguard Airlines, Inc. (OTC Bulletin Board: VNGD) today announced its results for the first quarter of 2002, reporting substantial improvements resulting from its revised business strategy.

For the three months ended March 31, 2002, Vanguard reported a net loss of $8.0 million ($0.18 per share) as compared to a net loss of $11.5 million ($0.56 per share) for the quarter ended March 31, 2001. Total operating revenues for the quarter increased 28 percent to $34.0 million from $26.5 million in 2001. Total operating expenses for first quarter 2002 increased seven percent to $39.9 million from $37.4 million in 2001. Vanguard’s unit costs decreased 8.5 percent to $0.086 per available seat mile in first quarter 2002.

During the first quarter of 2002, Vanguard increased both its load factor and its yield as compared to the first quarter of 2001. Yield increases were achieved despite an increase in average length of haul.

“These accomplishments solidly demonstrate the dramatic impact of strategic and operational improvements Vanguard launched in early 2001,” said Scott Dickson, Chief Executive Officer and President of Vanguard Airlines. “We would be pleased to achieve these improvements in any quarter, but to achieve them today when the industry is still recovering from the impact of September 11, and during a seasonally weak quarter for the industry, is a tremendous validation of our revised business plan.”

The Company’s load factor for the quarter was 65.2 percent, an increase of nine percent from 59.9 percent in first quarter 2001. Yield for the quarter increased five percent to $0.109 from $0.104 in the first quarter of 2001. Traffic for the quarter was 301.8 million revenue passenger miles (RPMs), an increase of 26 percent from 238.8 million RPMs in the first quarter of 2001. Capacity for the first quarter of 2002 increased to 462.5 million available seat miles (ASMs), an increase of 16 percent from 398.5 million ASMs in the first quarter of 2001.

Vanguard is achieving success on a number of fronts but requires funding in the immediate future to support operations and provide liquidity. To that end, the airline has had an application for a federal loan guarantee pending since December.

Vanguard Airlines, Kansas City’s Hometown Airline, provides convenient all-jet service to 18 cities nationwide, including Seattle beginning June 3. The airline offers low fares with no advance-purchase requirements, advanced seat assignment and extra legroom on all flights with a fleet of nine Boeing MD-80-series aircraft featuring SkyBox? Business Class service and four Boeing 737s. For more information or to make reservations online, visit Vanguard’s Web site at www.flyvanguard.com.

This press release contains forward-looking statements that involve risks and uncertainties. Such forward-looking statements are made based on management’s belief, as well as assumptions made by, and information currently available to, management pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Without limitation, there can be no assurance that Vanguard will obtain new financing with or without federal assistance or that Vanguard will successfully restructure. Further information on risks and uncertainties that could affect the Company’s financial results are included in the Company’s filings with the Securities and Exchange Commission, including the Form 10-K for the year ended December 31, 2001, and in subsequent filings with the Securities and Exchange Commission.

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