Kansas City, MO—Vanguard Airlines, Inc. (Nasdaq: VNGD) reported that for the month of October 1999 traffic increased 30% to approximately 73.2 million revenue passenger miles (RPMs) in October 1999 from approximately 56.1 million in October 1998. Capacity increased 34% to approximately 122.7 million available seat miles (ASMs) in October 1999 versus 91.6 million in October 1998. Load factor decreased approximately two points to 59.6% in October 1999 from approximately 61.3% in October 1998.

Year-to-date RPMs increased 23% to approximately 721.1 million in 1999 from approximately 585.2 million in 1998. Year-to-date ASMs increased 22% to approximately 1,059.3 million in 1999 from approximately 867.2 million in 1998. Year-to-date load factor increased approximately one point to 68.1% in 1999 from 67.5% in 1998.

Robert J. “Rocky” Spane, CEO and President of Vanguard Airlines, “As can be seen from a year-over-year comparison, Vanguard is accomplishing its strategic goal for capacity growth. Although year-over-year load factor decreased marginally, the overall recent results remain in line with our near term strategic plan and I remain positive as the Company continues to grow and provide a low cost air travel alternative to the public.”

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/Niagara Falls, 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 thirteen Boeing 737-200’s. Vanguard reported its first-ever annual operating profit in 1998 and its sixth consecutive quarter of operating profits in the third quarter of 1999. For more information on Vanguard, please visit our 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. Further information on such 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, 1998 and in subsequent filings filed with the Securities and Exchange Commission.

RPMs (000)
Oct. 1999: 73,160
Oct. 1998: 56,116
% Change: 30%
YTD 1999: 721,133
YTD 1998: 585,243
% Change: 23%

ASMs (000)
Oct. 1999: 122,660
Oct. 1998: 91,564
% Change: 34%
YTD 1999: 1,059,277
YTD 1998: 867,153
% Change: 22%

Load Factor
Oct. 1999: 59.6%
Oct. 1998: 61.3%
Change: (2) Pts.
YTD 1999: 68.1%
YTD 1998: 67.5%
Change: 1 Pt.

Passengers
Oct. 1999: 164,270
Oct. 1998: 121,856
% Change: 35%
YTD 1999: 1,590,567
YTD 1998: 1,254,700
% Change: 27%

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