Great Lakes Reports Record Third Quarter 1998 Results

Spencer, Iowa -- October 26, 1998 -- Great Lakes Aviation, Ltd. (NASDAQ:GLUX) reports the following financial and statistical data for the quarter and nine months ended September 30, 1998 (in thousands, except per share and selected operating data):

		QUARTER ENDED SEPTEMBER 30			NINE MONTHS ENDED SEPTEMBER 30
FINANCIAL SUMMARY		1998	1997	Change	1998	1997	Change
Passenger revenue		30,493	18,159	67.9%	68,086	60,559	12.4%
Public service revenue		4,201	1,623	158.8%	10,865	3,820	184.4%
Freight, charter and other revenue		1,490	592	151.7%	3,551	2,003	77.3%
Total operating revenues		36,184	20,374	77.6%	82,502	66,382	24.3%
Salaries, wages and benefits		7,830	4,539	72.5%	20,779	16,333	27.2%
Other operating expenses		22,572	12,955	74.2%	56,338	51,489	9.4%
Non recurring expenses		-	2,638		-	6,855
Total operating expenses		30,402	20,132	51.0%	77,117	74,677	3.3%
Operating income (loss)		5,782	242		5,385	(8,295)
Interest expense		781	1,287	(39.3)%	2,469	4,360	(43.4)%
Net income (loss) before income taxes		5,001	(1,045)		2,916	(12,655)
Income taxes		140	-		140
Net income (loss)		4,861	(1,045)		2,776	(12,655)

NET INCOME (LOSS) PER SHARE
	Basic	$ 0.61	$ (0.14)		$ 0.36	$ (1.67)
	Diluted	$ 0.56	$ (0.14)		$ 0.33	$ (1.67)

OPERATING STATISTICS
Available seat miles (000)		140,777	93,447	50.6%	349,807	345,678	1.2%
Revenue passengers carried		277,709	160,512	73.0%	627,102	524,618	19.5%
Revenue passenger miles (000)		80,622	49,276	63.6%	181,982	157,196	15.8%
Passenger load factor		57.3%	52.7%	8.6%	52.0%	45.5%	14.4%
Yield RPM		37.8�	36.9�	2.6%	37.4�	38.5�	(2.9)%

"We are extremely pleased with our financial performance for this quarter, as it represents an all time record for the company," said Douglas G. Voss, the Company's President and Chief Executive Officer. "These dramatically improved results could not have been achieved without the very focused efforts of our employee group, the Denver growth opportunity provided to the Company by United Airlines, and the continued financial backing by Raytheon Aircraft." Mr. Voss also noted that revenues for the quarter were boosted by an estimated three percent due to the pilot strike at Northwest Airlines.

The three and nine months ended September 30, 1997 included non-recurring expenses of $2.6 and $6.9 million respectively, relating to the Company's voluntary suspension of operations on May 16, 1997 and phased return to service during the second and third quarters of 1997. The number of weighted average shares outstanding used in the calculation of earnings per share has increased principally due to the previously announced private placement of common stock that closed on August 31, 1998.

Great Lakes Aviation, Ltd. operates as United Express serving 71 destinations in thirteen states located in the Upper Midwest, with hubs located at Chicago O'Hare, Denver and Minneapolis/St. Paul, as of October 25, 1998.

Certain matters discussed within this press release may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although Great Lakes Aviation, Ltd. believes the expectations reflected in any forward-looking statement are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from the Company's expectations include general industry conditions, changes in local or national economic conditions, the Company's relationship with United Airlines, changes in public subsidy rates for the Essential Air Service Program, and other risks detailed from time to time in the Company's SEC reports, including the Company's Form 10-K for the fiscal year ended December 31, 1997 and the Company's Form 10-Q for the six months ended Jun 30, 1998.

Great Lakes Aviation, Ltd. trades on the NASDAQ/Small-Cap Market under the symbol GLUX.