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

Total operating revenues for the first quarter of 2000 increased approximately 14% to $28.4 million from $24.9 million in the first quarter of 1999. Total operating expenses increased approximately 45% to $36.0 million from $24.8 million in the first quarter of 1999. The Company’s net loss for the three months ended March 31, 2000, was approximately $7.6 million or basic loss per share of $0.44, compared to a net profit of approximately $41,000 or basic earnings per share of $0.00 in the first quarter of 1999.

Passenger traffic increased approximately 19% to 206.5 million Revenue Passenger Miles for the first quarter 2000 versus 173.8 million in first quarter 1999. Capacity increased approximately 37% to 345.9 million Available Seat Miles from 252.4 million in first quarter 1999. Load factor decreased approximately nine points to 59.71% in the first quarter of 2000 compared to 68.86% in the first quarter of 1999.

Robert J. “Rocky” Spane, President and CEO of Vanguard Airlines, said, “We are very disappointed with our first quarter results. Factors affecting our results include late delivery of aircraft, Y2K issues and higher fuel prices. Currently, we have taken delivery of our scheduled airplanes, fuel prices are receding somewhat and we have made pricing adjustments to help offset the increased fuel costs. Additionally, a new vice president of Marketing is on board, and our summer routes have been announced and are on sale. We are poised for a strong summer.”

Vanguard, which began service in December 1994 and is headquartered in Kansas City, is a low-fare, 100% ticketless passenger airline providing convenient and frequent scheduled jet services to the following nine cities: Atlanta, Buffalo/Niagara Falls, Chicago-Midway, 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 14 Boeing 737s. For more information on Vanguard or to book reservations on-line, please visit the Company’s Web site at www.flyvanguard.com.

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