Exhibit 99.1

FOR IMMEDIATE RELEASE

JUNE 26, 2006

MAIR HOLDINGS, INC. REPORTS FISCAL 2006 FOURTH QUARTER
AND YEAR-END RESULTS

Minneapolis/St. Paul — (June 26, 2006) — MAIR Holdings, Inc. (the “Company”) (NASDAQ: MAIR) today reported a net loss of $54.1 million, or $2.63 per diluted share, for the fiscal 2006 fourth quarter ended March 31, 2006 compared to a net loss of $1.7 million, or $0.08 per share, during the same quarter a year ago.

The Company’s $54.1 million net loss in the fourth quarter of fiscal 2006 was primarily the result of a $45.6 million net loss at the Company’s subsidiary, Mesaba Aviation, Inc. (“Mesaba”). Mesaba’s losses were driven by:

· $20.2 million of reorganization items, mostly due to additional unsecured creditors’ claims filed in the quarter;

· $19.6 million in income tax expense due to recording a full valuation allowance on Mesaba’s net deferred tax assets; and

· $6.2 million in operating losses as Mesaba reduced its flying by 12 fewer Avros and 11 fewer Saabs in the fourth quarter year-over-year.

The Company also recorded an $8.9 million impairment charge in the fourth quarter to write off its remaining equity investment in Mesaba.

For the fiscal year ended March 31, 2006, the Company reported a net loss of $82.8 million, compared to net income of $7.4 million in fiscal 2005. On a per-share basis, the fiscal 2006 results equal a net loss of $4.02 per diluted share compared with net income of $0.35 per diluted share in fiscal 2005.

“Fiscal 2006 financial results were very disappointing,” said Paul F. Foley, MAIR’s president and chief executive officer. “Northwest Airlines’ decision to withhold approximately $30 million in regularly scheduled payments to Mesaba, its bankruptcy filing in September 2005, and its subsequent decision to reduce Mesaba’s fleet by more than 50% led to Mesaba’s own bankruptcy in October 2005 and to the Company incurring substantial financial losses in fiscal 2006. In fiscal 2007, we will explore growth opportunities, including acquisitions to diversify both within and outside the airline industry.”

The Company’s $82.8 million net loss in fiscal 2006 was primarily the result of a $70.7 million net loss at Mesaba. Mesaba’s losses were due to the $45.6 million fourth fiscal quarter loss described above and a $29.1 million reserve for the unsecured prepetition receivables due from Northwest to Mesaba for services provided by Mesaba prior to the date on which Northwest filed its bankruptcy petition (net of certain offsetting liabilities). In addition, the Company recorded the following charges in fiscal 2006:

· a $4.8 million charge for MAIR’s guaranty related to the Cincinnati hangar that Mesaba vacated in October 2005;

· an $8.9 million charge to write off MAIR’s remaining equity investment in Mesaba; and

· a $2.5 million goodwill impairment charge associated with Big Sky Transportation Co., the Company’s subsidiary.

As previously disclosed, Mesaba filed for Chapter 11 bankruptcy on October 13, 2005, and MAIR deconsolidated Mesaba’s financial results effective the date of its bankruptcy. As a result, Mesaba’s assets and liabilities have been removed from the Company’s condensed consolidated balance sheet at March 31, 2006 and replaced with MAIR’s investment in Mesaba. Because MAIR owns all of the common stock of Mesaba, this change did not affect the amount of net loss MAIR recorded resulting from Mesaba’s operations in any current or prior period, but did result in Mesaba’s net loss from the date of the bankruptcy forward being presented as “Equity in loss of Mesaba Aviation, Inc.” rather than its results being included in each individual income statement line item, as was the case for periods prior to October 13, 2005.

QUARTERLY CONFERENCE CALL

MAIR Holdings will conduct a live webcast to discuss its fourth quarter and fiscal 2006 results today, June 26th, at 10:00 A.M. (central time). The webcast will be available through the MAIR Holdings web site at www.mairholdings.com under the “Investor” link.

ABOUT THE COMPANY

MAIR Holdings’ primary business units are its regional airline subsidiary Mesaba Aviation, Inc., d/b/a Mesaba Airlines, and its regional airline subsidiary Big Sky Transportation Co., d/b/a Big Sky Airlines. MAIR Holdings, Inc. is traded under the symbol MAIR on the NASDAQ National Market. More information about MAIR Holdings is available on the Internet at www.mairholdings.com.

Mesaba operates as a Northwest Jet Airlink and Airlink partner under an airline service agreement with Northwest Airlines. The airline serves 99 cities in the United States and Canada from Northwest’s and Mesaba’s three major hubs: Detroit, Minneapolis/St. Paul and Memphis. Mesaba operates an advanced fleet of regional jet and jet-prop aircraft, consisting of the 69 passenger Avro RJ85, the 30-34 passenger Saab SF340 and the 50 passenger Canadair Regional Jet. Mesaba filed for Chapter 11 bankruptcy protection on October 13, 2005 and continues to operate as a debtor-in-possession. Mesaba maintains a web site at www.mesaba.com.

Big Sky currently serves 20 communities in Montana, Colorado, Idaho, Oregon, Washington and Wyoming with a fleet of 19 passenger Beechcraft 1900D aircraft. Big Sky is based in Billings, Montana and has codeshare agreements with Northwest Airlines, Alaska Airlines, Horizon Air and America West Airlines which allows customers the convenience of traveling with one ticket, through baggage checking and economical through fares, to destinations throughout the world. Big Sky is a provider of air service

under the Essential Air Service program administered by the Department of Transportation. Big Sky maintains a web site at www.bigskyair.com.

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements that are based on the best information currently available to management. These forward-looking statements are intended to be subject to the safe harbor protections of the Private Securities Litigation Reform Act of 1995. There can be no assurance that actual developments will be those anticipated by MAIR Holdings, Inc. Actual results could differ materially from those projected because of a number of factors, some of which MAIR Holdings, Inc. cannot predict or control. For a discussion of some of these factors, please see the ‘Cautionary Note Regarding Forward-Looking Statements’ and ‘Risk Factors’ in the company’s Form 10-Q for the quarter ended December 31, 2005.

Note to Editors: Summary financial and operating information follows.

###

Media Contact:	Jon Austin - 612-573-3157
Investor Contact:	Bob Weil - 612-333-0021

MAIR Holdings, Inc.

Condensed Consolidated Statements of Operations

(unaudited - in thousands, except per share information)

	Quarter Ended								Year Ended
	March 31								March 31
				Restated			Favorable					Restated		Favorable
	2006 (1)			2005 (2)			(Unfavorable)		2006 (1)			2005 (2)		(Unfavorable)
Operating revenues
Passenger	$	3,229		$	99,005				$	228,920		$	400,398
Freight and other	2,214			11,859					27,359			42,212
Total revenues	5,443			110,864			-95.1	%	256,279			442,610		-42.1	%
Operating expenses
Wages and benefits	2,561			39,207					88,666			148,652
Aircraft fuel	1,285			1,493					4,826			2,471
Aircraft maintenance	962			20,572					49,940			84,276
Aircraft rents	426			25,762					56,251			102,478
Landing fees	97			1,639					5,781			10,208
Insurance and taxes	678			1,276					5,368			7,383
Depreciation and amortization	207			3,392					8,127			14,634
Administrative and other	4,789			20,756					49,818			63,869
Impairment and other charges	8,935			—					50,203			—
Total operating expenses	19,940			114,097			82.5	%	318,980			433,971		26.5	%

Operating (loss) income	(14,497		)	(3,233		)	-348.4	%	(62,701		)	8,639		NM

Non operating income (expense)
Equity in loss of Mesaba Aviation, Inc.	(39,618		)	—					(39,953		)	—
Other nonoperating income, net	1,413			618					5,964			2,320
Income (loss) before income taxes	(52,702		)	(2,615		)	NM		(96,690		)	10,959		NM

Provision (benefit) for income taxes	1,385			(877		)			(13,842		)	3,604
Net (loss) income	$	(54,087	)	$	(1,738	)	NM		$	(82,848	)	$	7,355	NM

(Loss) earnings per common share - basic	$	(2.63	)	$	(0.08	)			$	(4.02	)	$	0.36
(Loss) earnings per common share - diluted	$	(2.63	)	$	(0.08	)			$	(4.02	)	$	0.35

Weighted average shares - basic	20,592			20,574					20,584			20,505
Weighted average shares - diluted	20,592			20,574					20,584			21,050

MAIR Holdings, Inc

Condensed Consolidated Balance Sheets

(unaudited - in thousands)

	March 31		March 31
	2006 (1)		2005
Assets
Cash and cash equivalents	$	47,135	$	57,968
Short term investments	44,117		69,669
Other current assets	7,184		59,910
Net property and equipment	1,423		38,421
Long term investments	19,484		43,240
Other assets, net	2,599		11,746
Total assets	$	121,942	$	280,954

Liabilities and Shareholders’ Equity
Current liabilities	$	12,571	$	82,206
Other liabilities and deferred credits	772		6,069
Shareholders’ equity	108,599		192,679
Total liabilities and shareholders’ equity	$	121,942	$	280,954

(1) Fiscal 2006 amounts reflect the deconsolidation of Mesaba’s financial results effective October 13, 2005

(2) Fiscal 2005 amounts have been restated to reflect corrections related to the presentation of certain reimbursable pass-through costs at Mesaba, primarily fuel.

Mesaba Aviation, Inc.

Condensed Statements of Operations

(unaudited - in thousands)

	Quarter Ended								Year Ended
	March 31								March 31
				Restated			Favorable					Restated		Favorable
	2006			2005 (1)			(Unfavorable)		2006			2005 (1)		(Unfavorable)
Operating revenues
Passenger	$	77,334		$	97,176				$	373,031		$	392,808
Freight and other	8,885			9,890					35,783			34,725
Total revenues	86,219			107,066			-19.5	%	408,814			427,533		-4.4	%
Operating expenses
Wages and benefits	33,750			37,151					145,495			140,871
Aircraft maintenance	19,442			20,033					83,368			81,860
Aircraft rents	19,618			25,298					92,948			100,502
Landing fees	1,990			2,473					9,333			9,959
Insurance and taxes	1,419			918					6,346			6,156
Depreciation and amortization	2,671			3,203					12,243			13,844
Administrative and other	14,344			18,372					68,000			59,885
Impairment and other charges	(800		)	—					31,206			—
Total operating expenses	92,434			107,448			14.0	%	448,939			413,077		-8.7	%

Operating (loss) income	(6,215		)	(382		)	NM		(40,125		)	14,456		NM

Non operating income (expense)
Other nonoperating income, net	462			99					1,194			259
(Loss) income before reorganization items and income taxes	(5,753		)	(283		)	NM		(38,931		)	14,715		NM

Reorganization items, net	20,239			—					23,395			—

(Loss) income before income taxes	(25,992		)	(283		)	NM		(62,326		)	14,715		NM

Provision (benefit) for income taxes	19,598			154					8,408			6,611
Net (loss) income	$	(45,590	)	$	(437	)	NM		$	(70,734	)	$	8,104	NM

(1) Fiscal 2005 amounts have been restated to reflect corrections related to the presentation of certain reimbursable pass-through costs at Mesaba, primarily fuel.

Mesaba Avaiation, Inc.

Condensed Balance Sheets

(unaudited - in thousands)

	March 31		March 31
	2006		2005
Assets
Cash and cash equivalents	$	20,718	$	20,357
Short term investments	3,262		—
Other current assets	54,304		55,569
Net property and equipment	32,532		36,585
Long term investments	6,761		3,615
Other assets, net	864		4,751
Total assets	$	118,441	$	120,877

Liabilities and Shareholders’ Equity
Current liabilities	$	52,984	$	73,580
Other liabilities and deferred credits	2,547		5,367
Liabilities subject to compromise	59,973		—
Shareholders’ equity	2,937		41,930
Total liabilities and shareholders’ equity	$	118,441	$	120,877

MAIR Holdings, Inc

Selected Operating Statistics By Operating Entity

(unaudited)

	Quarter Ended						Year Ended
	March 31						March 31
					Favorable						Favorable
	2006		2005		(Unfavor)		2006		2005		(Unfavor)

Mesaba Aviation, Inc.
Passengers	1,081,626		1,333,510		-18.9	%	5,452,424		5,623,731		-3.0	%
ASMs (000’s)	558,889		756,681		-26.1	%	2,755,577		3,064,167		-10.1	%
RPMs (000’s)	371,130		475,422		-21.9	%	1,861,110		2,003,910		-7.1	%
Load Factor	66.4	%	62.8	%	3.6	pts	67.5	%	65.4	%	2.1	pts
Departures	42,232		50,684		-16.7	%	198,035		207,067		-4.4	%
Revenue per ASM (cents)	15.4		14.1		9.2	%	14.8		14.0		5.7	%
Cost per ASM (cents)	16.5		14.2		-16.2	%	16.3		13.5		-20.7	%
Cost per ASM (cents)	16.7		14.2		-17.6	%	15.2		13.5		-12.6	%
excluding impairment and other charges

Big Sky Transportation Co.
Passengers	27,998		19,743		41.8	%	113,525		85,455		32.8	%
ASMs (000’s)	20,652		13,843		49.2	%	77,786		59,284		31.2	%
RPMs (000’s)	7,821		4,974		57.2	%	32,193		21,630		48.8	%
Load Factor	37.9	%	35.9	%	2.0	pts	41.4	%	36.5	%	4.9	pts
Departures	5,645		4,495		25.6	%	21,615		19,423		11.3	%
Revenue per ASM (cents)	26.4		27.4		-3.6	%	26.3		25.4		3.5	%
Cost per ASM (cents)	36.8		46.0		20.0	%	36.3		33.7		-7.7	%
Cost per ASM (cents)	36.5		46.0		20.7	%	33.1		33.7		1.8	%
excluding impairment and other charges

Minnesota		0-17895		41-1616499
(State or Other Jurisdiction of Incorporation)		(Commission File Number)		(IRS Employer Identification No.)

(c)		Exhibits.


99.1		Press Release dated June 26, 2006


Date: June 26, 2006	By	/s/ Ruth M. Timm
		Ruth M. Timm
	Its	Vice President, General Counsel and Secretary

Exhibit Number		Description

99.1		Press release dated June 26, 2006.