ATA to Reduce Capacity Through Aircraft Retirements.

Business Editors

INDIANAPOLIS--(BUSINESS WIRE)--Aug. 20, 2002

ATA Holdings Corp. (Nasdaq:ATAH), parent company of ATA (American Trans Air, Inc.), today announced it would reduce planned capacity beginning in September 2002.

Through numerous fleet changes, beginning with the elimination of the Lockheed L-1011 aircraft from scheduled service, ATA will reduce 2002 to 2004 scheduled service capacity, cut costs and conserve cash.

"The airline industry must match capacity to demand immediately if the revenue environment is to improve," said George Mikelsons, ATA Chairman and CEO. "These actions will have an immediate effect on ATA's cash balances and will be the first of many steps toward flying ATA back to profitability."

As of September 2002, ATA's scheduled service will be flown entirely by Boeing 757 and Boeing 737 aircraft with an average age of under two years. The remaining Lockheed L-1011 fleet will continue to be utilized for ATA's charter contract with the U.S. Military.

Also in September, ATA will remove one daily trip from each of its Chicago-Midway to Denver, Newark, Ft. Lauderdale, St. Petersburg, and Philadelphia markets.

"We will continue to evaluate our long-term capacity plan and make appropriate adjustments as needed to optimize our scheduled service business," Mikelsons added.

ATA is the nation's 10th largest passenger carrier, based on revenue passenger miles. Now in its 29th year of operation, ATA operates significant scheduled service from Chicago-Midway and Indianapolis to over 40 business and vacation destinations. To learn more about the company, visit the website at www.ata.com.