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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

For the quarterly period ended June 30, 2004

OR

For the transition period from                      to                     

Commission File No. 0-23224

GREAT LAKES AVIATION, LTD.

(Exact name of registrant as specified in its charter)

Registrant’s telephone number, including area code: (307) 432-7000

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act). Yes ¨ No x

As of June 30, 2004, 14,071,970 shares of Common Stock of the registrant were issued and outstanding.

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GREAT LAKES AVIATION, LTD.

FORM 10-Q

For the Quarterly Period Ended June 30, 2004

INDEX

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Cautionary Statement Regarding Forward-Looking Statements

In accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, Great Lakes Aviation, Ltd. (“Great Lakes” or the “Company”) notes that certain statements in this Quarterly Report on Form 10-Q and elsewhere are forward-looking and provide other than historical information. The Company’s management may also make oral, forward-looking statements from time to time. These forward-looking statements include, among others, statements concerning the Company’s general business strategies, financing decisions and expectations for funding expenditures and operations in the future. The words, “believe,” “plan,” “continue,” “hope,” “estimate,” “project,” “intend,” “expect,” and similar expressions reflected in such forward-looking statements are based on reasonable assumptions, and none of the statements contained in this Quarterly Report on Form 10-Q or elsewhere should be relied upon as predictions of future events. Such statements are necessarily dependent on assumptions, data or methods that may be incorrect or imprecise, and may be incapable of being realized. The risks and uncertainties that are inherent in these forward-looking statements could cause actual results to differ materially from those expressed in or implied by these statements.

As more fully described in this report, important factors that could cause results to differ materially from the expectations reflected in any forward-looking statements include:

Readers are cautioned not to place undue reliance on the forward-looking statements contained herein, which speak only as of the date hereof. Changes may occur after that date, and the Company does not undertake to update any forward-looking statements except as required by law in the normal course of its public disclosure practices.

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PART I - FINANCIAL INFORMATION

GREAT LAKES AVIATION, LTD.

Balance Sheets

See condensed notes to financial statements.

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GREAT LAKES AVIATION, LTD.

Statements of Operations

For the Three and Six Months Ended June 30, 2004 and June 30, 2003

(Unaudited)

See condensed notes to financial statements.

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GREAT LAKES AVIATION, LTD.

Statements of Cash Flows

For the Six Months Ended June 30,

(Unaudited)

See condensed notes to financial statements.

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GREAT LAKES AVIATION, LTD.

CONDENSED NOTES TO FINANCIAL STATEMENTS

(UNAUDITED)

General

The financial statements included herein have been prepared by Great Lakes Aviation, Ltd. (the “Company”), without audit, pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Certain information and note disclosures normally included in the annual financial statements prepared in accordance with generally accepted accounting principles in the United States of America have been condensed or omitted pursuant to the rules and regulations of the SEC. The information furnished in the Company’s financial statements includes normal recurring adjustments and reflects all adjustments, which are, in the opinion of management, necessary for a fair presentation of such financial statements. The Company’s business is seasonal and, accordingly, interim results are not necessarily indicative of results for a full year. However, the Company believes that the disclosures in this report are adequate to make the information presented not misleading. The accompanying financial statements should be read in conjunction with the Company’s financial statements for the year ended December 31, 2003 and the notes that were included in the Company’s 2003 Annual Report on Form 10-K filed with the SEC.

Use of Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates utilized by the Company include ticket revenue, government air service subsidies, depreciable lives, impairment and obsolescence and lease termination costs. Actual results could differ from those estimates.

The Company continues to assess its routes and the usefulness of its flight equipment and to evaluate its aircraft to determine if there has been an impairment to their remaining values under provisions of SFAS No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets.” If the Company determines that the total of the future discounted cash flows is less than the carrying value of an aircraft or group of aircraft, a loss will be recognized for the difference between the fair value and the carrying value of that aircraft or group of aircraft.

NOTE 1. Liquidity and Going Concern

In an audit opinion report dated March 10, 2004 on the Company’s financial statements for the fiscal year ended December 31, 2003, the Company’s independent auditors included an explanatory paragraph stating (i) that the Company suffered significant losses in the years ended December 31, 2002 and 2001 and (ii) that, as of December 31, 2003, the Company had liabilities in excess of assets. As a result, the Company’s independent auditors indicated in the explanatory paragraph that these matters raised substantial doubt about the Company’s ability to continue as a going concern.

During the six months ended June 30, 2004, the Company was unable to generate cash flows sufficient to fully service the Company’s outstanding aircraft debt and lease obligations. As a result, as of June 30, 2004, the Company was in arrears with respect to almost all of the Company’s aircraft debt and lease obligations. Furthermore, the Company cannot determine with a high degree of confidence that, in the future, the Company will be able to generate cash flows sufficient to satisfy the outstanding arrearages or regain compliance with the Company’s aircraft debt and lease agreements. In the event that the Company is unable to (i) satisfy the outstanding arrearages, negotiate terms for restructuring the arrearages, or obtain alternative debt and lease financing and (ii) make payments on all debt and lease obligations in a timely manner, the Company is at risk

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GREAT LAKES AVIATION, LTD.

CONDENSED NOTES TO FINANCIAL STATEMENTS

(UNAUDITED)

that one or more of the Company’s debt obligations will be accelerated, thereby forcing the Company to seek legal protection from its creditors or discontinue operations.

As of the date of this report, the Company continues to negotiate with the Company’s primary aircraft lender related to its Beechcraft aircraft, Raytheon Aircraft Credit Corporation (“Raytheon”), regarding a potential further restructuring of the Company’s debt financing with Raytheon. Concurrently, the Company is negotiating with creditors that have provided financing for the Company’s Brasilia aircraft to restructure the Company’s remaining debt and lease obligations.

The Company’s financial statements included in this Quarterly Report on Form 10-Q have been prepared under the assumption that the Company will continue as a going concern. The financial statements do not include any adjustments that might result if the Company were forced to discontinue operations.

NOTE 2. Aircraft

The following table presents a summary of the Company’s operating aircraft as of June 30, 2004 and December 31, 2003:

Return of Beechcraft 1900D Aircraft. During the first quarter of 2004, the Company returned one owned Beechcraft 1900D aircraft to Raytheon Aircraft Credit Corporation (“Raytheon”), with a net book value on the Company’s books of $2.5 million, in exchange for the cancellation and extinguishment of one promissory note. As a result, the Company reduced its outstanding aircraft debt and accrued interest by $3.8 million and recognized a non-cash gain from the extinguishment of debt in the amount of $1.3 million. The Company also returned the last leased Beechcraft 1900D aircraft to Raytheon in exchange for the cancellation and extinguishment of outstanding operating lease obligations. As a result, the Company reduced its outstanding accrued lease obligations by $0.7 million and recognized a non-cash gain from the termination of leases in the amount of $0.7 million.

During the second quarter of 2004, the Company returned an additional owned Beechcraft 1900D aircraft to Raytheon with a net book value on the Company’s books of $2.4 million in exchange for the cancellation and extinguishment of one promissory note. As a result the Company reduced its outstanding aircraft debt and accrued interest by an additional $3.8 million and recognized a further non-cash gain from extinguishment of debt in the amount of $1.3 million.

The Company also returned two leased Beechcraft 1900C aircraft to Raytheon in exchange for cancellation and extinguishment of outstanding lease obligations. As a result, the Company reduced its outstanding accrued lease obligations by $0.7 million and recognized a non-cash gain from the termination of the leases of $0.7 million.

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GREAT LAKES AVIATION, LTD.

CONDENSED NOTES TO FINANCIAL STATEMENTS

(UNAUDITED)

Return of Embraer Brasilia Model 120 Aircraft. On November 1, 2003, an aircraft operating lease (the “FINOVA Lease”) between the Company and FINOVA Capital Corporation (“FINOVA”) for one Embraer Brasilia Model 120 aircraft terminated by the lease’s own terms. In January 2004, the Company returned the Embraer Brasilia aircraft to FINOVA.

The Company remains liable for all outstanding lease payments, together with accrued penalty interest, that are due and payable under the terms of the FINOVA Lease. During the first six months of 2004, the Company made payments of $68,000 against the balance of the outstanding lease payments. As of June 30, 2004, the aggregate amount of outstanding lease payments and accrued penalty interest owed by the Company under the FINOVA Lease was $1.4 million.

NOTE 3. Notes Payable and Long-Term Debt

At June 30, 2004, the Company was in arrears with respect to almost all of the Company’s aircraft debt and lease obligations. Furthermore, the Company is uncertain that, during the remainder of the Company’s fiscal year 2004, the Company will be able to generate cash flow sufficient to satisfy the outstanding arrearages or regain compliance with the Company’s aircraft debt and lease agreements. Therefore, the amounts of the Company’s long-term debt that would otherwise be contractually due and payable after one year are reflected on the Company’s balance sheets as “long-term debt classified as current.”

The amount of long-term debt classified as current also includes additional amounts of debt carried by the Company on its books pursuant to the provisions of the Statement of Financial Accounting Standards No. 15, Accounting by Debtors and Creditors for Troubled Debt Restructuring (“SFAS No. 15”).

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GREAT LAKES AVIATION, LTD.

CONDENSED NOTES TO FINANCIAL STATEMENTS

(UNAUDITED)

The following table sets forth, as of June 30, 2004 and December 31, 2003, the amounts of the Company’s long-term debt, the amounts of current maturities of long-term debt, the amounts of long-term debt classified as current and the additional amounts of debt carried by the Company on its books pursuant to SFAS No. 15:

Reduction of Debt Balances due to Cash Payments. During the first six months of 2004, the Company made principal payments in the aggregate amount of $2.4 million against the Company’s outstanding debt balances. In addition, in accordance with SFAS No. 15, interest paid during the first six months of 2004 on debt obligations owed by the Company to Raytheon was applied against the carrying balances of the debt on the Company’s books.

Reduction of Debt Balances due to Return of Beechcraft 1900D Aircraft. During the first six months of 2004, the Company returned two owned Beechcraft 1900D aircraft to Raytheon in exchange for the cancellation and extinguishment of two promissory notes. As a result, the Company reduced its outstanding long-term aircraft debt by $6.6 million.

Addition of Engine Note. With respect to the physical condition of the Beechcraft 1900D aircraft that have been returned to Raytheon, the Company is responsible for costs of repair and refurbishment to satisfy certain aircraft return conditions as set forth in the Restructuring Agreement that was executed by and between the

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GREAT LAKES AVIATION, LTD.

CONDENSED NOTES TO FINANCIAL STATEMENTS

(UNAUDITED)

Company and Raytheon on December 31, 2002. Accordingly, as of December 31, 2003, the Company had recognized an accrued liability of $2.3 million for such expenditures. A Group A Engine Overhaul Note (the “Engine Note”), which sets forth the terms for repayment of the $2.3 million liability, has been executed by the Company, and during the first quarter of 2004 the Company reflected the previous $2.3 million accrued liability as a long-term note payable.

Under the terms of the Engine Note, payments of principal will be made in 60 equal monthly installments. Interest, payable monthly, accrues on the outstanding principal balance of the Engine Note at the per annum rate of LIBOR plus 400 basis points. The Company made principal payments totaling $37,954 against the Engine Note during the first half of 2004.

NOTE 4. Stock Option Plans

In 1993, the Company adopted the Great Lakes Aviation, Ltd. 1993 Stock Option Plan and the Great Lakes Aviation, Ltd. 1993 Director Stock Option Plan (collectively, the “Plans”). The Plans permitted stock options in the aggregate of 1,300,000 shares of the Company’s common stock to be granted to key employees, officers and directors of the Company. Pursuant to their terms, both Plans expired on October 31, 2003, and no options may be granted after October 31, 2003. However, all outstanding options that were granted under the Plans will remain in effect until such outstanding options have either expired or been cancelled.

Both of the Plans were fixed stock option plans. Therefore, in accounting for the Plans, the Company has applied the accounting treatment prescribed by the provisions of Accounting Principles Board Opinion No. 25, Accounting for Stock Issued to Employees and Related Interpretations (“APB Opinion No. 25”). Accordingly, no compensation costs have been recognized for the Plans, as exercise prices were at least equal to the fair market value of the Company’s common stock on the various dates of option grants.

The Company has elected the pro forma disclosure option under Statement of Financial Accounting Standards No. 123, Accounting for Stock-Based Compensation (“SFAS No. 123”). Pro forma net profit and pro forma net loss per share have been provided as if SFAS No. 123 were adopted for all stock-based compensation plans.

The pro forma information in the following table shows the effect of determining the compensation expense for the Company’s Plans in accordance with SFAS No. 123:

As required, the pro forma disclosures above are based on options granted since January 1, 1995. Consequently, the effects of applying SFAS No. 123 for providing pro forma disclosures may not be

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GREAT LAKES AVIATION, LTD.

CONDENSED NOTES TO FINANCIAL STATEMENTS

(UNAUDITED)

representative of the effects on reported net income for future years until all options outstanding are included in the pro forma disclosures. For purposes of pro forma disclosures, the estimated fair value of stock-based compensation plans and other options is amortized to expense primarily over the vesting period of the options.

NOTE 5: Subsequent Event

At June 30, 2004, the Company was obligated to the Transportation Security Administration for $2.5 million, representing collections from passengers for security fees and amounts due from the Company for aviation security infrastructure fees. On August 11, 2004, the Company restructured this obligation into a note that requires the Company to pay the amount owed in 36 monthly payments beginning in August 2004.

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The Company

The Company is a regional airline operating as an independent carrier and as a code share partner with United Air Lines, Inc. (“United Air Lines” or “United”) and Frontier Airlines, Inc. (“Frontier Airlines” or “Frontier”). As of August 1, 2004, the Company served 32 destinations in nine states to and from Denver, Colorado and three destinations in three states to and from Phoenix, Arizona. The Company also serves Brookings and Huron, South Dakota to and from Minneapolis, Minnesota. Service to these three cities will be terminated September 1, 2004.

General information about the Company can be found at www.greatlakesav.com. The Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, as well as any amendments and exhibits to those reports, are available free of charge through the Company’s web-site as soon as reasonably practicable after the Company has filed such reports with, or furnished them to, the United States Securities and Exchange Commission (the “SEC”). Information on the Company’s web-site is not incorporated into, nor a part of, this Quarterly Report on Form 10-Q or any of the Company’s other filings with the SEC.

Current Year Developments

Increased Frequency to Certain Destinations. During the first quarter of 2004, the Company increased the number of its regularly scheduled flights to certain destinations in New Mexico, Wyoming and Arizona.

Termination of Air Service to Certain Destinations. During the first quarter of 2004, the Company terminated all operations at Vernal and Moab, Utah and Casper, Wyoming. In April 2004, the Company terminated all operations at Wichita, Kansas. In July 2004, the Company terminated all operations at Norfolk, Nebraska. On August 23, 2004, the Company will terminate all operations at Rapid City, South Dakota.

Changes in Levels of Air Passenger Service to Certain Destinations. During the first quarter of 2004, the Company upgraded its air passenger services to three cities in Wyoming by converting one daily round-trip for each of the destinations from a 19-passenger Beechcraft 1900D aircraft to a 30-passenger Embraer Brasilia Model 120 aircraft.

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Essential Air Services Contracts. The following table, based on estimated annual flights presents as summary of the Company’s Essential Air Service Contracts as of August 12, 2004:

Fleet Management Program^TM. In April 2004, the Company entered into a five-year Term Cost Plan^TM Agreement (the “FMP Contract”) with Pratt & Whitney Canada Corp. (“P&WC”) under which P&WC will supply the Company with certain engine maintenance services under a Fleet Management Program.^TM The Company has entered into the FMP Contract to comply with certain aircraft maintenance requirements that are set forth in the Restructuring Agreement between the Company and Raytheon Aircraft Credit Corporation dated as of December 31, 2002. Under the terms of the FMP Contract, the engines for all 30 of the Company’s Beechcraft 1900D aircraft will be overhauled over the next two and one-half years. Monthly amounts to be paid by the Company will be based on the total number of Beechcraft 1900D engine operating hours at a fixed contractual rate. Such monthly payments will continue throughout the five-year term of the FMP contract.

Starting April 1, 2004, maintenance expense is recognized under the FMP contract based on the monthly amounts to be paid to P&WC. For the three months ended June 30, 2004, the Company recognized total

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expense of $1.1 million. The Company did not receive any overhauled engines from P&WC during the second quarter of 2004.

The FMP Contract may be cancelled by either party on three months prior written notice. In such event, the FMP Contract provides for a payment to, or receipt from, P&WC of the difference between amounts the Company has paid to P&WC and the cost of maintenance performed by P&WC.

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Results of Operations for the Three Months Ended June 30, 2004 and 2003.

The following table sets forth certain financial information regarding the Company’s results of operations for the three months ended June 30, 2004 and 2003:

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Selected Operating Data

The following table sets forth certain selected operating data regarding the Company’s operations for the three months ended June 30, 2004 and 2003:

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Comparison of Second Quarter 2004 to Second Quarter 2003

Passenger Revenues. Passenger revenues were $13.3 million in the second quarter of 2004, an increase of 18.5% from $11.2 million in the second quarter of 2003. The $2.1 million increase in passenger revenues is primarily attributable to a 7.8% increase in revenue passenger miles during the second quarter of 2004, along with a increase in passenger yield of 8.8%. The Company’s available seat mile (“ASM”) capacity for the second quarter of 2004 decreased 1.3% over the ASM capacity for the second quarter of 2003 as a result of an decrease in the number of the Company’s regularly scheduled flights.

Public Service Revenues. At June 30, 2004, the Company served 24 communities on a subsidized basis under the U.S. Department of Transportation Essential Air Service Program (the “EAS Program”). Public service revenues earned through the EAS Program decreased 4.9% to $6.1 million during the second quarter of 2004, as compared to $6.4 million during the second quarter of 2003. The reduction in public service revenue was due primarily to a 15% reduction in the number of communities served by the Company under the EAS Program offset by an adjustment of $1.2 million to record increased EAS revenues for prior periods as older open EAS contract negotiations reach finalization.

Other Revenues. Other revenues were $0.1 million during the second quarter of 2004, a decrease of 76.3% from the second quarter of 2003. During the first half of 2003, the Company provided service to the United States Postal Service, utilizing two Beechcraft 1900C aircraft for carrying mail to certain markets. Due to highly competitive bidding by other air carriers at rates that were not economically feasible for the Company, the Company elected to terminate the service in July 2003.

Operating Expenses. Total operating expenses were $18.7 million, or 23.7 cents per ASM, in the second quarter of 2004 as compared to $17.7 million, or 22.1 cents per ASM, in the second quarter of 2003.

Salaries, Wages and Benefits. Salaries, wages and benefits were $5.5 million in the second quarter of 2004, a decrease of 2.4% from $5.4 million in the second quarter of 2003. The decrease in salaries, wages and benefits is primarily attributable to company-wide reductions in staffing levels and hours worked.

These cost reductions were partially offset by the cost of additional staff hired for the commencement of operations by the Company during the second half of 2003 in the following markets: Rapid City, South Dakota; Grand Junction, Colorado; and Wichita, Kansas. The Wichita, Kansas operations were discontinued in the second quarter of 2004.

Aircraft Fuel Expense. Aircraft fuel expense was $3.3 million, or 4.2 cents per ASM, in the second quarter of 2004. In comparison, the Company’s aircraft fuel expense for the second quarter of 2003 was $2.7 million, or 3.4 cents per ASM. The 22.1% increase in the Company’s aircraft fuel expense is primarily attributable to the 28.3% increase in average cost of fuel, which was partially offset by fuel consumption savings resulting from the July 2003 termination of mail service and the 2.1% reduction in departures.

Aircraft Maintenance, Materials and Component Repair Expense. Aircraft maintenance, materials and component repair expense was $3.4 million during the second quarter of 2004, an increase of 74.6% from $1.9 million during the second quarter of 2003. The increase in aircraft maintenance expense is primarily attributable to the introduction of the Pratt & Whitney FMP program on April 1, 2004, the expensing of the installation of previously overhauled engines and the timing of propeller overhauls and cost to return aircraft in accordance with contractual requirements. Two-thirds of the Company’s aircraft fleet has or will undergo propeller overhauls during the first three quarters of 2004.

Depreciation and Amortization. Depreciation and amortization expense during the second quarter of 2004 was $1.6 million, or 2.1 cents per ASM, which was a decrease of 19.2% from $2.0 million, or 2.5 cents per ASM, in

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the second quarter of 2003. The decrease in depreciation expense is primarily attributable to the return of four surplus Beechcraft 1900D aircraft to Raytheon Aircraft Credit Corporation (“Raytheon”) during 2003, and two during the first half of 2004, in accordance with the Company’s 2002 Restructuring Agreement with Raytheon and a reduction in depreciation related to rotable parts inventory.

Aircraft Rental. Aircraft lease expense was $0.5 million during the second quarter of 2004, a decrease of 19.2% from $0.8 million in the second quarter of 2003. The decrease in aircraft lease expense is primarily attributable to the expiration of an aircraft lease for one Embraer Brasilia Model 120 on November 1, 2003 and the subsequent return of the aircraft to the lessor, FINOVA Capital Corporation, in January 2004, along with the return of one surplus Beechraft 1900D aircraft and two surplus Beechcraft 1900C aircraft to Raytheon during the first half of 2004, in accordance with the Company’s 2002 Restructuring Agreement with Raytheon.

Other Rentals and Landing Fees Expense. Other rentals and landing fees expense was $0.6 million during the second quarter of 2004, a decrease of 47.4% from $1.1 million during the second quarter of 2003. The decrease in rentals and landing fees expense is attributable to a credit of $0.7 million received for annual rate adjustments at Denver International Airport. Offsetting this, airport rentals and landing fees increased as a result of the commencement of operations by the Company during the second half of 2003 in the following markets: Rapid City, South Dakota; Grand Junction, Colorado; and Wichita, Kansas.

Other Operating Expenses. Other operating expenses were $3.7 million, or 4.7 cents per ASM, during the second quarter of 2004, an increase of 1.1% from $3.7 million, or 4.6 cents per ASM, during the second quarter of 2003. The increase in other operating expenses is primarily due to an increase of approximately $257,000 in pilot training costs and associated lodging expenses. The increase in pilot training costs is attributable an increased utilization of the Company’s Embraer Brasilia Model 120 fleet, which required a corresponding increase in the number of trained pilots for these aircraft.

The other operating expense increase that was generated by the increase in pilot training costs was partially offset by an expense reduction of approximately $233,000 due to a decrease in the Company’s expense for hull and liability insurance and a reduction in professional fees.

Interest Expense. Contractual interest expense of $1.3 million was incurred during the second quarter of 2004 of which $1.0 was applied against restructured Raytheon debt in accordance with SFAS No. 15. The net interest cost of $0.3 million compares to the $1.0 million of net interest cost in the 2003 period. The decrease of $0.7 million or 70.1% between the periods was primarily the result of (i) a $0.4 million expense reduction attributable to the extinguishment of $18.7 million debt for six debt-financed aircraft that were returned to Raytheon during 2003 and 2004 and (ii) decreases in variable interest rates, along with reduction of Embraer interest accruals for prior period penalty interest of $0.4 million. The interest expense decrease was partially offset by $0.1 million for additional expense for the conversion of accounts payable to notes payable for United and Raytheon.

Income Tax Expense (Benefit). The realization of any income tax benefits remains substantially in doubt as the Company continues in its loss carry forward position.

Gain on Termination of Leases. During the second quarter of 2004, the Company recognized a $0.7 million non-cash gain on termination of lease as a result of the return of two operating lease-financed Beechcraft 1900C aircraft to Raytheon. See “Raytheon Aircraft Credit Corporation” below.

Gain on Extinguishment of Debt. During the second quarter of 2004, the Company recognized a $1.3 million non-cash gain on extinguishment of debt as a result of the return of one debt-financed Beechcraft 1900D aircraft to Raytheon. See “Raytheon Aircraft Credit Corporation” below.

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Results of Operations for the Six Months Ended June 30, 2004 and 2003.

The following table sets forth certain financial information regarding the Company’s results of operations for the six months ended June 30, 2004 and 2003: