Kansas City, MO—Vanguard Airlines, Inc. (“Vanguard” or the “Company”) (OTC: VNGD) announced first quarter results today.

The Company`s net profit for the three months ended March 31, 1999 was approximately $41,000 or basic and diluted earnings per share of $0.00, compared to a net loss of approximately $4.6 million or basic loss per share of $0.10 in the first quarter of 1998.

Total operating revenues for the three months ended March 31, 1999, increased approximately 17% to $24.9 million from $21.2 million in first-quarter 1998. Total operating expenses for the three months ended March 31, 1999, decreased approximately 1% to $24.8 million from $25.0 million in the first quarter of 1998. Yield for the first quarter of 1999 increased approximately 16% to $0.1350 compared to $0.1169 in the first quarter of 1998. Load factor increased 3.76 points to 68.86% in the first quarter of 1999 compared to 65.10% in the first quarter of 1998. Breakeven load factor decreased 11.84 points to 68.52% in the first quarter of 1999 compared to 80.36% in the first quarter of 1998.

Robert J. “Rocky” Spane, CEO and President of Vanguard Airlines, said, “The Vanguard turnaround marches on. By every measure, our year-over-year quarterly performance showed improvement and our advance bookings suggest that this momentum will continue into the second quarter. We are now focused on growth. Having started the year with nine Boeing 737-200 aircraft, we recently took delivery of our eleventh aircraft, and we continue to pursue up to three more for delivery by year-end.

Using these aircraft, we intend to increase frequency in the markets we serve, as well as introduce service to another high density, short-haul market that currently has relatively little competition. We believe our strategy is validated by our financial turnaround the last 12 months and the response we have received in our newest market, Cincinnati, to which we initiated service April 15, 1999.

Our unit revenues are currently among the highest in the industry and we anticipate that our growth plans will keep them at this level while unit costs simultaneously decrease through economies of scale. Overall, the future looks promising, with domestic demand for low fares strengthening, fuel prices still relatively low, and with the DOT competitive guidelines due for publication this summer.”

As previously announced, the Company`s shareholders will vote on a one-for-five reverse stock split at its Annual Meeting on May 18, 1999. In connection with the reverse stock split, the Company has filed listing applications with the Nasdaq SmallCap Stock Market and American Stock Exchange. There can be no assurance that the price of the Company`s Common Stock will increase in an amount proportionate to the decrease in the number of outstanding shares or that the Company will be successful with its application for listing on either the Nasdaq SmallCap Stock Market or the American Stock Exchange.

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 nine cities: Atlanta, Chicago-Midway, Cincinnati, Dallas/Ft. Worth, Denver, Kansas City, Minneapolis/St. Paul, Myrtle Beach and Pittsburgh. The Company employs approximately 800 full-time equivalent employees and currently operates a fleet of eleven Boeing 737-200`s. The Company has signed letters of intent for three replacement aircraft, with anticipated delivery dates in the second half of 1999.

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