Kansas City, MO—Vanguard Airlines, Inc. (OTC: VNGDD) reported that for the month of May 1999, traffic increased 33% to approximately 73.1 million revenue passenger miles (RPMs) in May 1999 from approximately 54.9 million in May 1998. Capacity increased 27% to approximately 105.0 million available seat miles (ASMs) in May 1999 versus 83.0 million in May 1998. Load factor increased four points to 69.7% in May 1999 from approximately 66.2% in May 1998.

Year-to-date RPMs increased 12% to approximately 315.7 million in 1999 from approximately 280.8 million in 1998. Year-to-date ASMs increased 7% to approximately 454.4 million in 1999 from approximately 426.5 million in 1998. Year-to-date load factor increased approximately four points to 69.5% in 1999 from 65.8% in 1998.

Vanguard, which began service in December 1994 and is headquartered in Kansas City, is a low-fare, passenger airline providing convenient, scheduled jet service. Vanguard serves the following ten cities: Atlanta, Buffalo (effective July 15, 1999), Chicago-Midway, Cincinnati, Dallas/Ft. Worth, Denver, Kansas City, Minneapolis/St. Paul, Myrtle Beach and Pittsburgh. The Company employs approximately 900 full-time equivalent employees and currently operates a fleet of eleven Boeing 737-200`s, with one more due for delivery in June 1999. The Company has also signed letters of intent for three replacement aircraft, with anticipated delivery dates in the second half of 1999. Vanguard reported its first-ever annual operating profit in 1998 and its fourth consecutive quarter of operating profits in the first quarter of 1999.

RPMs (000)
MAY 1999: 73,148
MAY 1998: 54,882
% CHANGE: 33%
YTD 1999: 315,739
YTD 1998: 280,813
% CHANGE: 12%

ASMs (000)
MAY 1999: 104,995
MAY 1998: 82,949
% CHANGE: 27%
YTD 1999: 454,360
YTD 1998: 426,479
% CHANGE: 7%

Load Factor
MAY 1999: 69.7%
MAY 1998: 66.2%
CHANGE: 4 pts.
YTD 1999: 69.5%
YTD 1998: 65.8%
CHANGE: 4 pts.

Passengers
MAY 1999: 167,762
MAY 1998: 120,431
% CHANGE: 39%
YTD 1999: 694,258
YTD 1998: 590,940
% CHANGE: 17%
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