ASA Holdings, Inc. Reports Record Earnings for Second Quarter 1998.

ATLANTA--(BUSINESS WIRE)--July 22, 1998--ASA Holdings, Inc. (NASDAQ/NM:ASAI) (parent company of Atlantic Southeast Airlines, Inc.) today reported record traffic, revenues, and net income for the second quarter of 1998.

For the quarter ended June 30, 1998, net income increased 32.3% to $19.5 million, or $0.65 per share, compared with $14.8 million, or $0.49 per share, for the similar period of 1997. Included in the results for the second quarter of 1997 was an after-tax expense accrual of $1.6 million, or $0.05 per share, relating to the Company's return in the fourth quarter of 1997 and the first quarter of 1998 of all BAe-146 aircraft to their lessor. In addition, second quarter 1997 results included an after-tax charge of $1.9 million, or $0.07 per share, associated with the termination of the Company's Stock Appreciation Rights (SARs) program. For the second quarter ended June 30, 1998, total revenues increased 7.1% to $106.7 million primarily due to a 12.6% increase in revenue passenger miles, partially offset by a 5.2% decline to 38.3 cents in yield per revenue passenger miles.

For the six months ended June 30, 1998, net income was $32.9 million, or $1.09 per share, compared with $25.5 million, or $0.85 per share, for the same period of 1997. Total revenues for the six months ended June 30, 1998, increased 5.9% to $200.4 million.

Commenting on the results, Ronald V. Sapp, senior vice president for the Atlanta-based airline, said, "We are pleased with the record results for the quarter, and the load factors on the Canadian Regional Jet (CRJ) continues to exceed our expectations. At June 30, 1998, the Company had taken delivery of 11 CRJ aircraft and plans to take delivery of an additional 19 aircraft over the next year and a half."

ASA Holdings, Inc. operates Atlantic Southeast Airlines, Inc., Atlanta's largest regional air carrier, and offers service to 21 cities from a second hub in Dallas, Texas. ASAs stock is traded on The Nasdaq Stock Markets National Market under the symbol ASAI.

With the exception of historical factual information, the statements made in this press release constitute forward-looking statements under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations and involve certain assumptions, risks and uncertainties that could cause actual results to differ materially from those included in or contemplated by the statements. These assumptions, risks and uncertainties include, but are not limited to, those detailed in the Company's Annual Report on Form 10-K for the year ended December 31, 1997, including those set forth under the heading, "Factors Affecting Future Performance" therein, and in other publicly available documents filed by the Company with the Securities and Exchange Commission. The Company disclaims any obligation to update any forward-looking statements as a result of developments occurring after the issuance of this press release. -0-

                        ASA HOLDINGS, INC.
                   Unaudited Financial Highlights

                            Three Months Ended June 30,
                            ---------------------------
Financial Highlights            1998           1997         % Change
                            ------------   ------------      -------
Total revenues              $106,666,000   $ 99,638,000        7.1%
Operating expenses            77,804,000     78,404,000       (0.8%)
Operating income              28,862,000     21,234,000       35.9%
Non-operating income           2,528,000      1,793,000       41.0%
Income before taxes           31,390,000     23,027,000       36.3%
Provision for taxes           11,850,000      8,255,000       43.5%
Net income                  $ 19,540,000   $ 14,772,000       32.3%
Net income per share
 - Diluted                  $       0.65   $       0.49       32.7%
Weighted average
 equivalent shares            30,016,000     30,005,000         --

Operating Highlights

Passengers                     1,062,000        993,000        6.9%
Revenue passenger miles (000)    272,977        242,344       12.6%
Available seat miles (000)       471,719        462,113        2.1%
Load factor                         57.9%          52.4%       5.5 pts
Yield/RPM                    $      .383   $       .404       (5.2%)

                             Six Months Ended June 30,
                            ---------------------------
Financial Highlights            1998           1997         % Change
                            ------------   ------------      -------
Total revenues              $200,415,000   $189,253,000        5.9%
Operating expenses           152,193,000    152,269,000
Operating income              48,222,000     36,984,000       30.4%
Non-operating income           4,576,000      3,071,000       49.0%
Income before taxes           52,798,000     40,055,000       31.8%
Provision for income taxes    19,931,000     14,551,000       37.0%
Net income                  $ 32,867,000   $ 25,504,000       28.9%
Net income per share
 - Diluted                  $       1.09   $       0.85       28.2%
Weighted average
 equivalent shares            30,019,000     30,018,000         --

Operating Highlights

Passengers                     1,931,000      1,829,000        5.6%
Revenue passenger miles (000)    494,153        446,143       10.8%
Available seat miles (000)       894,867        895,288
Load factor                         55.2%          49.8%       5.4 pts
Yield/RPM                   $       .397   $       .416       (4.6%)

CONTACT: ASA Holdings Inc., Atlanta

Ronald V. Sapp, 404/766-1400

URL: http://www.irinfo.com/asai