Kansas City, MO—Vanguard Airlines, Inc. (“Vanguard” or the “Company”) (NasdaqSC: VNGD) announced fourth quarter and year-end 2000 results today.

For the year ending December 31, 2000, the Company posted a net loss of $26.0 million ($1.46 per share) compared to a net loss of $5.1 million ($0.30 per share) in 1999. Year-end operating revenues increased 5.4 percent to $131.8 million while operating expenses were up 20 percent to $156.6 million.

The Company reported a net loss in the fourth quarter of $11.0 million ($0.56 per share) compared to a net loss of $7.3 million ($0.43 per share) in the fourth quarter of 1999. Total operating revenues decreased three percent to $30.2 million compared to $31.1 million in fourth quarter 1999. Total operating expenses increased six percent to $40.7 million from $38.4 million in the fourth quarter of 1999.

The Company`s fuel costs increased significantly from $0.67 per gallon in 1999 to $1.05 per gallon in 2000 (amounts include taxes and into-plane costs). The 57 percent increase in fuel costs accounted for approximately $13.7 million of the increase in the Company`s operating expenses year over year.

Jeff Potter, CEO and President of Vanguard Airlines, said, “While we are disappointed in the results for 2000, they are in line with our expectations. After a poor performance in 1999, it became clear that changes needed to occur in our route system. A re-evaluation of our business strategy concluded that a shift to a single Kansas City hub serving medium-to-long haul routes was the best market niche for Vanguard. This shift in our route structure has negatively impacted our short-term performance as we position ourselves in these new markets. We expect these changes to continue to negatively impact our performance through the first quarter of 2001. We believe these changes will ultimately produce improved results during 2001.”

“We are pleased with the redirection of the Company’s route structure and aircraft fleet planning,” said Robert Spane, Chairman of Vanguard Airlines. “We have also strengthened the management team, and the challenge in 2001 will now be to follow through on the execution of the strategy Jeff has put in place.”

Kansas City-based Vanguard Airlines, which began service in December 1994, is a value-priced passenger airline. The airline provides convenient all-jet service to 14 cities: Atlanta, Austin, Buffalo/Niagara Falls, Chicago-Midway, Dallas/Ft. Worth, Denver, Kansas City, Las Vegas (beginning April 1), Los Angeles, Myrtle Beach, New Orleans, New York-LaGuardia, Pittsburgh and San Francisco (beginning April 1). The company has approximately 950 full-time employees and currently operates a fleet of 11 Boeing 737s. For more information, visit the company’s Web site at www.flyvanguard.com.

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