ATLANTIC SOUTHEAST AIRLINES, INC. REPORTS EARNINGS FOR SECOND QUARTER.

ATLANTA--(BUSINESS WIRE)--July 25, 1995--Atlantic Southeast Airlines, Inc. today reported revenues, traffic and earnings for the second quarter ended June 30, 1995.

For the second quarter, net income was $15.0 million compared with $16.6 million for the similar period of 1994. Net income per share was $0.45 compared with $0.48 per share for the second quarter of 1994. Revenues increased 9.8 percent to $90.0 million from $82.0 million.

Second quarter 1995 net income includes an after-tax accrual of $2.6 million, or $0.08 per share, associated with the Company's Stock Appreciation Rights Plan (SARs). The unusual size of the expense accrual was due to the impact of a 63 per cent increase in the Company's common stock price during the second quarter of 1995. In addition, second quarter of 1995 revenues includes a one-time, after-tax settlement of $1.2 million, or $0.04 per share, with an equipment supplier. Excluding the above items, second quarter net income would be $16.4 million, or $0.49 per share. Second quarter 1994 included an after-tax reduction of expense of $1.7 million, or $0.05 per share, associated with the SARs Plan.

For the six months ended June 30, 1995, net income was $24.5 million, or $0.74 per share, compared with $28.9 million, or $0.84 per share, for 1994. Revenues increased 3.1 per cent to $161.9 million in 1995 compared with $157.1 million in 1994.

Commenting on the results, Ronald V. Sapp, vice president - finance for the Atlanta-based airline, said, "We are pleased with the quarter's results. In fact, excluding the unusual items discussed above, net income increased 14 per cent to $0.49 per share compared with $0.43 per share for the similar period of 1994."

Atlantic Southeast Airlines, Inc. is Atlanta's largest regional air carrier and offers service to 26 cities from a second hub in Dallas, Texas. ASA's stock is traded on The Nasdaq Stock Market's National Market under the symbol ASAI. -0-

                  ATLANTIC SOUTHEAST AIRLINES, INC.
                   Unaudited Financial Highlights

                           Three Months Ended June 30,
Financial Highlights         1995             1994           % Change
Total revenues          $  90,049,000    $  82,033,000          9.8%
Operating expenses         66,755,000       55,401,000         20.5%
Operating income           23,294,000       26,632,000        (12.5%)
Non-operating expense
 (income)                    (964,000)        (371,000)         N.M.
Income before taxes        24,258,000       27,003,000        (10.2%)
Provision for taxes         9,291,000       10,423,000        (10.9%)
Net income              $  14,967,000    $  16,580,000         (9.7%)
Net income per share    $        0.45    $        0.48         (6.2%)
Average shares
 outstanding               33,113,000       34,383,000         (3.7%)

Operating Highlights
Passengers                    808,338          800,161          1.0%
Revenue passenger miles (000) 201,578          200,030          0.8%
Available seat miles (000)    427,842          409,863          4.4%
Load factor                      47.1%            48.8%      (1.7pts)
Yield/RPM                        42.6             40.2          6.0%

                            Six Months Ended June 30,
Financial Highlights         1995             1994           % Change
Total revenues          $ 161,940,000    $ 157,051,000          3.1%
Operating expenses        124,271,000      110,578,000         12.4%
Operating income           37,669,000       46,473,000        (18.9%)
Non-operating expense
 (income)                  (1,597,000)        (645,000)         N.M.
Income before taxes        39,266,000       47,118,000        (16.7%)
Provision for income taxes 14,739,000       18,188,000        (19.0%)
Net income              $  24,527,000    $  28,930,000        (15.2%)
Net income per share    $        0.74    $        0.84        (11.9%)
Average shares
 outstanding               33,098,000       34,409,000         (3.8%)

Operating Highlights
Passengers                  1,489,209        1,515,114         (1.7%)
Revenue passenger miles (000) 371,823          376,828         (1.3%)
Available seat miles (000)    833,664          801,386          4.0%
Load factor                      44.6%            47.0%      (2.4pts)
Yield/RPM                        42.0             40.9          2.7%

CONTACT: Atlantic Southeast Airlines, Inc., Atlanta 

Ronald V. Sapp, 404/766-1400