First Quarter Earnings

Bloomington, Minn., May 21, 1997 -- Great Lakes Aviation, Ltd. (NASDAQ/GLUX) today reported that the loss for the first quarter of 1997 was $4.8 million, up from a comparable pretax loss of $4.5 million in 1996.

Operating revenues were up 15.2%, and operating expenses were up 14.4% over the 1996 period. First quarter 1996 results included the benefit of a $1.7 million tax credit which reduced the net loss to $2.8 million.

The seasonal first quarter 1997 loss included losses of $830,000 from Midway Connection operations and $490,000 from Arizona, New Mexico and Mexico operations.

Major changes are being made to improve profitability by discontinuing service in markets that fail to meet the company's financial expectations.

Scheduled service is being discontinued to Albuquerque, New Mexico; and Tucson, Arizona. In Mexico, service is being discontinued to Hermosillo, Guaymas and Puerto Penasco/Rocky Point. In the company's Midway Connection route structure, service will be discontinued at Richmond, Virginia and Greenville/Spartanburg.

It was previously announced that the company reached a mutual agreement to cancel operations as Midway Connection effective November 1.

In excess of 70% of Great Lakes' Aviation revenues are derived from the United Express system. The United Express system serves primarily the upper midwest region which experienced unusually severe weather, especially in North Dakota, South Dakota and northern Michigan. On average, 27% of passengers holding reservations were not carried as a result of weather-driven delays and other cancellations, changes in passenger plans and multiple bookings. This was up from 15% in the same period of 1996. In February 1997, this percentage was 16% compared to 12% in 1996.

Fuel price increases of 12 cents a gallon in the first quarter of 1997 resulted in $600,000 of additional expenses.

Selected financial and statistical data for the first quarter ended March 31, 1997 and 1996 (In thousands, except per share and selected operating data) were:

	Quarter ended	Quarter ended
	March 31, 1997	March 31, 1996	Change
Passenger Revenues	$24,377	$21,966	11.0%
Total Revenue	26,668	23,140	15.2 %
Operating Expenses	29,842	26,077	14.5%
Operating loss	(3,174)	(2,937)
Loss before income taxes	(4,787)	(4,471)	7.1%
Income tax provision (benefit)		(1,698)
Net loss	(4,787)	(2,773)

NET LOSS PER SHARE	($0.63)	($0.37)

Available seat miles (000)	155,038	151,948	2.0
Revenue passengers carried	211,011	221,219	(4.2)
Revenue passenger miles (000)	64,033	65,938	(2.9)

Passenger load factor	41.5%	43.4%

Yield per revenue passenger mile	$0.38	$0.33
Operating cost per available seat mile	$0.19	$0.17