8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 25, 2008

Kitty Hawk, Inc.

(Exact name of registrant as specified in its charter)

Delaware	001-32284	75-2564006
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

1515 West 20th Street P.O. Box 612787
DFW International Airport,  Texas	75261
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (972) 456-2200

NOT APPLICABLE

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01 Other Events.

As previously reported, on October 15, 2007, Kitty Hawk, Inc. (the “Company”) and all of its wholly-owned subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code.  The Company also announced on November 14, 2007 that, during the pendency of the Company’s bankruptcy proceedings, it has adopted a modified reporting program with respect to its reporting obligations under the federal securities laws.  In lieu of filing annual reports on Form 10-K and quarterly reports on Form 10-Q, each month the Company will file with the Securities and Exchange Commission (the “SEC”) a current report on Form 8-K that will have attached to it the monthly financial reports required by the Bankruptcy Court.

On January 24, 2008, the Company submitted to the Bankruptcy Court its monthly financial reports for itself and all of its wholly-owned subsidiaries for the month ended December 31, 2007 (the “Monthly Reports”).  The Monthly Reports are filed as Exhibits 99.1 through 99.5 to this Form 8-K and are incorporated herein by this reference.

Cautionary Statement Regarding the Monthly Reports

The Monthly Reports contain financial statements and other financial information that have not been audited or reviewed by any independent public accounting firm and may be subject to future reconciliation or adjustments.  The Monthly Reports are in a format prescribed by applicable bankruptcy laws and should not be used for investment purposes.  The Monthly Reports may not be indicative of the Company’s financial condition or operating results.  Results set forth in the Monthly Reports should not be viewed as indicative of future results.

Statement under the Private Securities Litigation Reform Act

This report may contain forward-looking statements that are intended to be subject to the safe harbor protection provided by Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act. These statements relate to future events or future financial and operating performance and involve known and unknown risks and uncertainties that may cause actual results or performance to be materially different from those indicated by any forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “forecast,” “may,” “will,” “could,” “should,” “expect,” “intends,” “plan,” “believe,” “potential” or other similar words indicating future events or contingencies. For a discussion of these and other risk factors, see the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission. All of the forward-looking statements are qualified in their entirety by reference to the risk factors discussed therein. These risk factors may not be exhaustive. Management cannot predict such new risk factors, nor can it assess the impact, if any, of such new risk factors on the Company’s business or events described in any forward-looking statements. The Company disclaims any obligation to publicly update or revise any forward-looking statements after the date of this release to conform them to actual results.

2

Item 9.01 Financial Statements and Exhibits.

(d)           Exhibits.

Exhibit Number	Description
Exhibit 99.1	Monthly Financial Report of Kitty Hawk, Inc. for Month Ending December 31, 2007
Exhibit 99.2	Monthly Financial Report of Kitty Hawk Ground, Inc. for Month Ending December 31, 2007
Exhibit 99.3	Monthly Financial Report of Kitty Hawk Cargo, Inc. for Month Ending December 31, 2007
Exhibit 99.4	Monthly Financial Report of Kitty Hawk Aircargo, Inc. for Month Ending December 31, 2007
Exhibit 99.5	Monthly Financial Report of KH Ground, Inc. for Month Ending December 31, 2007

3

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	KITTY HAWK, INC.
Date: January 28, 2008	By:	/s/ James R. Kupferschmid
	Name:		James R. Kupferschmid
	Title:		Senior Vice President

4

EX-99.1

Exhibit 99.1

Monthly Operating Report

ACCRUAL BASIS

2007

CASE NAME:  Kitty Hawk, Inc.

CASE  NUMBER: 07-44536

JUDGE: Russell F. Nelms

UNITED STATES BANKRUPTCY COURT

NORTHERN DISTRICT OF TEXAS

 DIVISION 6

MONTHLY OPERATING REPORT

MONTH ENDING:  DECEMBER 31, 2007

IN ACCORDANCE  WITH  TITLE  28,  SECTION  1746,  OF  THE  UNITED  STATES  CODE,  I DECLARE  UNDER  PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY  OPERATING  REPORT  (ACCRUAL BASIS-1  THROUGH  ACCRUAL BASIS-7)  AND THE  ACCOMPANYING  ATTACHMENTS  AND,  TO  THE  BEST  OF  MY  KNOWLEDGE,  THESE DOCUMENTS  ARE  TRUE,  CORRECT  AND  COMPLETE.  DECLARATION  OF  THE  PREPARER (OTHER  THAN  RESPONSIBLE  PARTY):  IS  BASED  ON  ALL  INFORMATION  OF  WHICH PREPARER  HAS  ANY  KNOWLEDGE.

RESPONSIBLE  PARTY:

/s/ James R. Kupferschmid	Senior VP and Chief Restructing Officer
ORIGINAL  SIGNATURE  OF RESPONSIBLE PARTY	TITLE
James R. Kupferschmid	January 24, 2008
PRINTED NAME OF RESPONSIBLE PARTY	DATE
PREPARER:
/s/ Jessica L. Wilson	VP and Chief Financial Officer
ORIGINAL  SIGNATURE  OF  PREPARER	TITLE
Jessica L. Wilson	January 24, 2008
PRINTED NAME OF PREPARER	DATE

Monthly Operating Report

ACCRUAL BASIS-1
2007

CASE NAME:  Kitty Hawk, Inc.

CASE  NUMBER: 07-44536

COMPARATIVE BALANCE SHEET

		SCHEDULE		MONTH			MONTH			MONTH
		AMOUNT		October 2007			November 2007			December 2007
ASSETS
1.	UNRESTRICTED CASH	$	0	$	690,282		$	37,748		$	1,657,197
2.	RESTRICTED CASH	$	2,869,929	$	2,874,759		$	2,882,870		$	2,818,971
3.	TOTAL CASH	$	2,869,929	$	3,565,041		$	2,920,618		$	4,476,168
4.	ACCOUNTS RECEIVABLE (NET)			$	(1,000,146	)	$	(999,465	)	$	(939,218	)
5.	INVENTORY			$	0		$	0		$	0
6.	NOTES RECEIVABLE			$	0		$	0		$	0
7.	PREPAID EXPENSES			$	699,558		$	611,276		$	492,787
8.	OTHER (ATTACH LIST)	$	15,953	$	46,850,577		$	35,937,044		$	33,323,620
9.	TOTAL CURRENT ASSETS	$	2,885,882	$	50,115,030		$	38,469,473		$	37,353,357
10.	PROPERTY, PLANT  & EQUIPMENT	$	1,425,325	$	3,362,423		$	3,362,423		$	3,362,423
11.	LESS: ACCUMULATED DEPRECIATION / DEPLETION	$	0	$	1,794,013		$	1,825,608		$	1,852,250
12.	NET PROPERTY, PLANT & EQUIPMENT	$	1,425,325	$	1,568,410		$	1,536,815		$	1,510,173
13.	DUE FROM INSIDERS	$	0	$	0		$	0
14.	OTHER ASSETS — NET OF AMORTIZATION (ATTACH LIST)	$	0	$	4,758,694		$	4,622,732		$	3,486,848
15.	OTHER (ATTACH LIST)	$	1,109,030	$	0		$	0		$	0
16.	TOTAL ASSETS	$	5,420,237	$	56,442,134		$	44,629,020		$	42,350,378
POSTPETITION LIABILITIES
17.	ACCOUNTS PAYABLE			$	52,754		$	80,583		$	(17,944	)
18.	TAXES PAYABLE			$	0		$	0		$	0
19.	NOTES PAYABLE			$	0		$	0		$	0
20.	PROFESSIONAL FEES			$	110,000		$	323,000		$	737,144
21.	SECURED DEBT			$	0		$	0		$	0
22.	OTHER (ATTACH LIST)			$	21,691		$	6,666		$	358,817
23.	TOTAL POSTPETITION LIABILITIES			$	184,445		$	410,249		$	1,078,017
PREPETITION LIABILITIES
24.	SECURED DEBT	$	15,602,760	$	14,376,295		$	2,519,599		$	(43,454	)
25.	PRIORITY DEBT	$	56,297	$	0		$	0		$	0
26.	UNSECURED DEBT	$	1,010,347	$	906,948		$	933,789		$	787,383
27.	OTHER (ATTACH LIST)	$	0	$	0		$	0
28.	TOTAL PREPETITION LIABILITIES	$	16,669,404	$	15,283,243		$	3,453,388		$	743,929
29.	TOTAL LIABILITIES	$	16,669,404	$	15,467,688		$	3,863,637		$	1,821,946
EQUITY
30.	PREPETITION OWNERS’ EQUITY			$	41,090,061		$	41,090,061		$	41,090,061
31.	POSTPETITION CUMULATIVE PROFIT OR (LOSS)			$	(115,615	)	$	(324,678	)	$	(561,629	)
32.	DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION)			$	0		$	0
33.	TOTAL EQUITY	$	0	$	40,974,446		$	40,765,383		$	40,528,432
34.	TOTAL LIABILITIES & OWNERS’ EQUITY	$	16,669,404	$	56,442,134		$	44,629,020		$	42,350,378

Monthly Operating Report

ACCRUAL BASIS-2
2007

CASE NAME:  Kitty Hawk, Inc.

CASE  NUMBER: 07-44536

INCOME STATEMENT

		MONTH			MONTH			MONTH			QUARTER
		October 2007			November 2007			December 2007			TOTAL
REVENUES
1.	GROSS REVENUES	$	0		$	0		$	0		$	0
2.	LESS: RETURNS & DISCOUNTS	$	0		$	0		$	0		$	0
3.	NET REVENUE	$	0		$	0		$	0		$	0
COST OF GOODS SOLD
4.	MATERIAL	$	0		$	0		$	0		$	0
5.	DIRECT LABOR	$	0		$	0		$	0		$	0
6.	DIRECT OVERHEAD	$	0		$	0		$	0		$	0
7.	TOTAL COST OF GOODS SOLD	$	0		$	0		$	0		$	0
8.	GROSS PROFIT	$	0		$	0		$	0		$	0
OPERATING EXPENSES
9.	OFFICER / INSIDER COMPENSATION	$	83,222		$	104,681		$	80,738		$	268,641
10.	SELLING & MARKETING	$	0		$	0		$	0		$	0
11.	GENERAL & ADMINISTRATIVE	$	384,473		$	416,364		$	1,433,575		$	2,234,412
12.	RENT & LEASE	$	20,452		$	38,729		$	40,588		$	99,769
13.	OTHER (ATTACH LIST)	$	(616,445	)	$	(744,571	)	$	(1,758,293	)	$	(3,119,309	)
14.	TOTAL OPERATING EXPENSES	$	(128,298	)	$	(184,797	)	$	(203,392	)	$	(516,487	)
15.	INCOME BEFORE NON-OPERATING INCOME & EXPENSE	$	128,298		$	184,797		$	203,392		$	516,487
OTHER INCOME  & EXPENSES
16.	NON-OPERATING INCOME (ATT. LIST)	$	5,440		$	16,337		$	13,814		$	35,591
17.	NON-OPERATING EXPENSE (ATT. LIST)	$	0		$	0		$	0		$	0
18.	INTEREST EXPENSE	$	121,056		$	165,373		$	3,599		$	290,028
19.	DEPRECIATION / DEPLETION	$	17,327		$	31,595		$	26,642		$	75,564
20.	AMORTIZATION	$	971		$	0		$	0		$	971
21.	OTHER (ATTACH LIST)	$	0		$	0		$	0		$	0
22.	NET OTHER INCOME & EXPENES	$	133,914		$	180,631		$	16,427		$	330,972
REORGANIZATION EXPENSES
23.	PROFESSIONAL FEES	$	110,000		$	213,228		$	413,916		$	737,144
24.	U.S. TRUSTEE FEES	$	0		$	0		$	10,000		$	10,000
25.	OTHER (ATTACH LIST)	$	0		$	0		$	0		$	0
26.	TOTAL REORGANIZATION EXPENSES	$	110,000		$	213,228		$	423,916		$	747,144
27.	INCOME TAX	$	0		$	0		$	0		$	0
28.	NET PROFIT (LOSS)	$	(115,616	)	$	(209,062	)	$	(236,951	)	$	(561,629	)

Monthly Operating Report

ACCRUAL BASIS-3
2007

CASE NAME:  Kitty Hawk, Inc.

CASE  NUMBER: 07-44536

		MONTH		MONTH			MONTH		QUARTER
		October 2007		November 2007			December 2007		TOTAL
CASH RECEIPTS AND DISBURSEMENTS
1.	CASH — BEGINNING OF MONTH	$	0	$	690,282		$	37,748	$	0
RECEIPTS FROM OPERATIONS
2.	CASH SALES	$	0	$	0		$	0	$	0
COLLECTION OF ACCOUNTS RECEIVABLE
3.	PREPETITION	$	0	$	0		$	0	$	0
4.	POSTPETITION	$	0	$	0		$	0	$	0
5.	TOTAL OPERATING RECEIPTS	$	0	$	0		$	0	$	0
NON-OPERATING RECEIPTS
6.	LOANS & ADVANCES (ATTACH LIST)	$	7,635,000	$	1,760,000		$	486,566	$	9,881,566
7.	SALE OF ASSETS	$	0	$	0		$	0	$	0
8.	OTHER (ATTACH LIST)	$	48,022	$	658		$	6,255,189	$	6,303,869
9.	TOTAL NON-OPERATING RECEIPTS	$	7,683,022	$	1,760,658		$	6,741,755	$	16,185,435
10.	TOTAL RECEIPTS	$	7,683,022	$	1,760,658		$	6,741,755	$	16,185,435
11.	TOTAL CASH AVAILABLE	$	7,683,022	$	2,450,940		$	6,779,503	$	16,185,435
OPERATING DISBURSEMENTS
12.	NET PAYROLL	$	1,091,326	$	1,086,991		$	845,842	$	3,024,159
13.	PAYROLL TAXES PAID	$	379,056	$	404,775		$	307,312	$	1,091,143
14.	SALES, USE & OTHER TAXES PAID	$	0	$	0		$	0	$	0
15.	SECURED / RENTAL / LEASES	$	165,069	$	210,417		$	797,213	$	1,172,699
16.	UTILITIES	$	0	$	2,777		$	81,208	$	83,985
17.	INSURANCE	$	545,270	$	188,148		$	122,743	$	856,161
18.	INVENTORY PURCHASES	$	600	$	0		$	0	$	600
19.	VEHICLE EXPENSES	$	0	$	0		$	0	$	0
20.	TRAVEL	$	181,109	$	103,268		$	102,256	$	386,633
21.	ENTERTAINMENT	$	0	$	0		$	0	$	0
22.	REPAIRS & MAINTENANCE	$	29,762	$	2,932		$	85,868	$	118,562
23.	SUPPLIES	$	0	$	0		$	0	$	0
24.	ADVERTISING	$	0	$	0		$	0	$	0
25.	OTHER (ATTACH LIST)	$	4,600,548	$	413,884		$	2,779,864	$	7,794,296
26.	TOTAL OPERATING DISBURSEMENTS	$	6,992,740	$	2,413,192		$	5,122,306	$	14,528,238
REORGANIZATION EXPENSES
27.	PROFESSIONAL FEES	$	0	$	0		$	0	$	0
28.	U.S. TRUSTEE FEES	$	0	$	0		$	0	$	0
29.	OTHER (ATTACH LIST)	$	0	$	0		$	0	$	0
30.	TOTAL REORGANIZATION EXPENSES	$	0	$	0		$	0	$	0
31.	TOTAL DISBURSEMENTS	$	6,992,740	$	2,413,192		$	5,122,306	$	14,528,238
32.	NET CASH FLOW	$	690,282	$	(652,534	)	$	1,619,449	$	1,657,197
33.	CASH — END OF MONTH	$	690,282	$	37,748		$	1,657,197	$	1,657,197

Monthly Operating Report

ACCRUAL BASIS-4
2007

CASE NAME: Kitty Hawk, Inc.

CASE  NUMBER: 07-44536

		SCHEDULE		MONTH			MONTH			MONTH
		AMOUNT		October 2007			November 2007			December 2007
ACCOUNTS RECEIVABLE AGING
1.	0-30	$	0	$	0		$	0		$	0
2.	31-60	$	0	$	0		$	0		$	0
3.	61-90	$	0	$	0		$	0		$	0
4.	91+	$	0	$	0		$	0		$	0
5.	TOTAL ACCOUNTS RECEIVABLE	$	0	$	0		$	0		$	0
6.	AMOUNT CONSIDERED UNCOLLECTIBLE	$	0	$	1,000,146		$	999,465		$	939,218
7.	ACCOUNTS RECEIVABLE (NET)	$	0	$	(1,000,146	)	$	(999,465	)	$	(939,218	)

AGING OF POSTPETITION TAXES AND PAYABLES MONTH: December 2007

		0-30			31-60		61-90		91+
		DAYS			DAYS		DAYS		DAYS		TOTAL
TAXES PAYABLE
1.	FEDERAL	$	0		$	0	$	0	$	0	$	0
2.	STATE	$	0		$	0	$	0	$	0	$	0
3.	LOCAL	$	0		$	0	$	0	$	0	$	0
4.	OTHER (ATTACH LIST)	$	0		$	0	$	0	$	0	$	0
5.	TOTAL TAXES PAYABLE	$	0		$	0	$	0	$	0	$	0
6.	ACCOUNTS PAYABLE	$	(52,176	)	$	19,813	$	12,193	$	2,226	$	(17,944	)

STATUS OF POSTPETITION TAXES MONTH: December 2007

		BEGINNING TAX		AMOUNT WITHHELD AND/		AMOUNT		ENDING TAX
		LIABILITY*		OR ACCRUED		PAID		LIABILITY
FEDERAL
1.	WITHHOLDING**	$	0	$	27,119	$	27,119	$	0
2.	FICA-EMPLOYEE**	$	0	$	9,205	$	9,205	$	0
3.	FICA-EMPLOYER**	$	0	$	9,205	$	9,205	$	0
4.	UNEMPLOYMENT	$	0	$	0	$	0	$	0
5.	INCOME	$	0	$	0	$	0	$	0
6.	OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
7.	TOTAL FEDERAL TAXES	$	0	$	45,529	$	45,529	$	0
STATE AND LOCAL
8.	WITHHOLDING	$	0	$	745	$	745	$	0
9.	SALES	$	0	$	0	$	0	$	0
10.	EXCISE	$	0	$	0	$	0	$	0
11.	UNEMPLOYMENT	$	0	$	104	$	104	$	0
12.	REAL PROPERTY	$	0	$	0	$	0	$	0
13.	PERSONAL PROPERTY	$	0	$	0	$	0	$	0
14.	OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
15.	TOTAL STATE & LOCAL			$	0	$	849	$	849
16.	TOTAL TAXES	$	0	$	46,378	$	46,378	$	0

*	The beginning tax liability should represent the liability from the prior month or, if this is the first operating report, the amount should be zero.
**	Attach photocopies of IRS Form  6123 or your FTD coupon and payment receipt to verify payment or deposit.

Monthly Operating Report

ACCRUAL BASIS-5

2007

CASE NAME: Kitty Hawk, Inc.

CASE NUMBER: 07-44536

The debtor in possession must complete the reconciliation below for each bank account, including all general, payroll and tax accounts, as well as all savings and investment accounts, money market accounts, certificates of deposit, government obligations, etc. Accounts with restricted funds should be identified by placing an asterisk next to the account number. Attach additional sheets if necessary.

	MONTH:  December 2007
BANK RECONCILIATIONS

	Account #1		Account #2			Account #3			TOTAL
A.    BANK:	JP Morgan Chase		JP Morgan Chase			JP Morgan Chase
B.    ACCOUNT NUMBER:	100140334		9319959434			1570695922
C.    PURPOSE (TYPE):	Master Funding		Gen’l Disbursements			Payroll
1.    BALANCE PER BANK STATEMENT	$	150,000	$	0		$	0		$	150,000
2.    ADD: TOTAL DEPOSITS NOT CREDITED	$	0	$	0		$	0		$	0
3.    SUBTRACT: OUTSTANDING CHECKS	$	0	$	578,079		$	434,579		$	1,012,658
4.    OTHER RECONCILING ITEMS	$	4,793	$	0		$	0		$	4,793
5.    MONTH END BALANCE PER BOOKS	$	154,793	$	(578,079	)	$	(434,579	)	$	(857,865	)
6.    NUMBER OF LAST CHECK WRITTEN	No checks		109350			066991/210577

INVESTMENT ACCOUNTS

	DATE OF	TYPE OF	PURCHASE		CURRENT
	PURCHASE	INSTRUMENT	PRICE		VALUE
BANK, ACCOUNT NAME  & NUMBER
7.    JP Morgan Chase — Overnight Sweep -	12/31/2007	money market	$	2,514,862	$	2,514,862
8.
9.
10.
11.  TOTAL INVESTMENTS			$	2,514,862	$	2,514,862

CASH

12.  CURRENCY ON HAND	$	200
13.  TOTAL CASH — END OF MONTH	$	1,657,197

Monthly Operating Report

ACCRUAL BASIS-6

2007

CASE NAME: Kitty Hawk, Inc.

CASE NUMBER: 07-44536

MONTH:  December 2007

PAYMENTS TO INSIDERS AND PROFESSIONALS

OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS (AS DEFINED IN SECTION  101 (31) (A)-(F)  OF THE U.S. BANKRUPTCY CODE) AND TO PROFESSIONALS. ALSO, FOR PAYMENTS TO INSIDERS, IDENTIFY THE TYPE OF COMPENSATION PAID (e.g. SALARY, BONUS, COMMISSIONS, INSURANCE, HOUSING ALLOWANCE, TRAVEL, CAR ALLOWANCE, ETC.). ATTACH ADDITIONAL SHEETS IF NECESSARY.

INSIDERS

		TYPE OF	AMOUNT		TOTAL PAID
	NAME	PAYMENT	PAID		TO DATE
1.	James R. Kupferschmid	Salary, Expense Reports	$	16,667	$	50,043
2.	Jessica L. Wilson	Salary, Expense Reports	$	10,417	$	31,251
3.	Brad Eagelston	Salary, Expense Reports	$	12,917	$	38,751
4.	David Rescino	Salary, Expense Reports	$	16,737	$	50,068
5.	Steven Markhoff	Salary, Expense Reports	$	0	$	18,333
6.	Mel Keating	Executive Committee Fee, Exp Reports	$	24,000	$	96,902
7.	TOTAL PAYMENTS TO INSIDERS		$	80,738	$	285,348

PROFESSIONALS

		DATE OF COURT							TOTAL
		ORDER AUTHORIZING	AMOUNT		AMOUNT		TOTAL PAID		INCURRED
	NAME	PAYMENT	APPROVED		PAID		TO DATE		& UNPAID*
1.	Andrews Kurth LLP								$	515,144
2.	Otterbourg, Steindler, Houston & Rosen, P.C.								$	180,000
3.	Munsch Hardt Kopf & Harr, P.C.								$	42,000
4.
5.
6.	TOTAL PAYMENTS TO PROFESSIONALS		$	0	$	0	$	0	$	737,144

*INCLUDE ALL FEES INCURRED, BOTH APPROVED AND UNAPPROVED

POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE PROTECTION PAYMENTS

		SCHEDULED		AMOUNTS
		MONTHLY		PAID		TOTAL
		PAYMENTS		DURING		UNPAID
	NAME OF CREDITOR	DUE		MONTH		POSTPETITION
1.	Laurus Master Fund	Revolver		$	4,039,062	$	0
2.	Cananwill	$	12,020	$	0	$	12,020
3.	Citicorp Vendor Finance	$	6,005	$	0	$	18,015
4.	DFW Airport — Facility rent	$	37,295	$	38,760	$	0
5.
6.	TOTAL	$	55,320	$	4,077,822	$	30,035

Monthly Operating Report

ACCRUAL BASIS-7

2007

CASE NAME: Kitty Hawk, Inc.

CASE NUMBER: 07-44536

	MONTH:  December 2007
QUESTIONNAIRE

		YES	NO
1.	HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE
	THE NORMAL COURSE OF BUSINESS THIS REPORTING PERIOD?	X
2.	HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT
	OTHER THAN A DEBTOR IN POSSESSION ACCOUNT?		X
3.	ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR
	LOANS) DUE FROM RELATED PARTIES?		X
4.	HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES
	THIS REPORTING PERIOD?	X
5.	HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE
	DEBTOR FROM ANY PARTY?		X
6.	ARE ANY POSTPETITION PAYROLL TAXES PAST DUE?		X
7.	ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES
	PAST DUE?		X
8.	ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE?		X
9.	ARE ANY OTHER POSTPETITION TAXES PAST DUE?		X
10.	ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS
	DELINQUENT?	X
11.	HAVE ANY PREPETITION TAXES BEEN PAID DURING THE
	REPORTING PERIOD?		X
12.	ARE ANY WAGE PAYMENTS PAST DUE?		X

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS “YES,” PROVIDE A DETAILED EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY.

# 1  —  Misc equipment sold when locations closed i/a/w de minimis asset sale motion approved by the Court

# 4  —  Payment made on pre-petition credit card charges $(72,000) through Chase Bank from cash collateral account as approved by Court. Payment also made on accrued vacation balances and insurance liabilities in accordance with first day orders.

# 10  —  due to operation shut down, DIP order will not allow payment of expenditures between 10/15 and 10/29 until DIP lender paid in full; expect payments to resume in 1/08

INSURANCE

		YES	NO
1.	ARE WORKER’S COMPENSATION, GENERAL LIABILITY AND OTHER
	NECESSARY INSURANCE COVERAGES IN EFFECT?	X
2.	ARE ALL PREMIUM PAYMENTS PAID CURRENT?		X
3.	PLEASE ITEMIZE POLICIES BELOW.

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS “NO,” OR IF ANY POLICIES HAVE BEEN CANCELLED OR NOT RENEWED DURING THIS REPORTING PERIOD, PROVIDE AN EXPLANATION BELOW. ATTACH ADDITIONAL SHEETS IF NECESSARY.

# 2 — 12/07 Property Insurance premium paid 1/10/08.

INSTALLMENT PAYMENTS

TYPE OF			PAYMENT AMOUNT
POLICY	CARRIER	PERIOD COVERED	& FREQUENCY
D&O Insurance	AIG	6/1/07 – 5/31/08	Paid in full
Aviation & Liability	Illinois National Insurance	7/1/07 – 6/30/08	Quarterly; $281,953 (original policy)
B737 Aviation Deductible	Illinois National Insurance	7/1/07 – 6/30/08	Paid in full
Property & Business Interruption	Affiliated FM Insurance	6/1/07 – 5/31/08	Financed; monthly $12,020
Employee Practices	RLI Insurance	6/1/07 – 5/31/08	Paid in full
Fiduciary Liability	RLI Insurance	6/1/07 – 5/31/08	Paid in full
Workers Compensation	Insurance Co of PA	6/1/07 – 5/31/08	Paid in full
D&O InsuranceSide A	Chubb	6/1/07 – 5/31/08	Paid in full
Environmental Impairment	Hudson Insurance	6/1/05 – 5/31/08	Paid in full

Footnotes Supplement

ACCRUAL BASIS-7

2007

CASE NAME: Kitty Hawk, Inc.

CASE NUMBER: 07-44536

MONTH:  December 2007

Accrual Basis	Line
Form Number	Number	Footnote/Explanation
3	8	All available cash received into each subsidiary cash account is transferred
		to pay down the Revolving Credit Facility with Laurus Master Fund, carried
		on Kitty Hawk, Inc. books
3	31	All disbursements (either by wire transfer or check), including payroll, are
		disbursed out of the Kitty Hawk, Inc. disbursement accounts
4	6	All assessments of uncollectible accounts receivable are done at Kitty Hawk,
		Inc. All reserves are recorded at Inc. and pushed down to Inc.’s subsidiaries
		as deemed necessary.
7		All insurance policies for Kitty Hawk Cargo, Inc. (Case #07-44538) and
		Kitty Hawk Aircargo, Inc. (Case #07-44539) are carried in the name of Kitty
		Hawk, Inc. Therefore, they are listed here accordingly.
6	Professional	The fees noted on this schedule are initial estimates and are subject to change
	Fees	once final billings are prepared.
1	24	Secured Debt pre-petition includes $257,365 Laurus is holding after payment
		in full for the outstanding obligations on 12/7/07, pending their final receipt
		and reconciliation of professional fees they expended during the proceedings

Case Name: Kitty Hawk, Inc.

Case Number: 07-44536

Details of Other Items

	December 2007
ACCRUAL BASIS — 1
8. OTHER (ATTACH LIST)	33,323,620		Reported
Flex Spending deposit	17,283
A/R — 401(k) Loan	37
A/R — Travel Advance	15,720
Deposits	54,868
Professional Fees Retainer	457,365
Intercompany Receivables	32,778,347
	33,323,620		Detail
	0		Difference
14. OTHER ASSETS — NET OF AMORTIZATION ATTACH LIST	3,486,848		Reported
Laurus Loan Organization Costs	3,486,848
	3,486,848		Detail
	0		Difference
22. OTHER (ATTACH LIST)	358,817		Reported
A/P Clearing	(3,953	)
General Accrued AP	382,817
Accrued Health Savings Plan	(20,277	)
AFLAC Deductions	4
Accrued Wages	0
Accrued 401(k)	226
	358,817		Detail
	0		Difference
ACCRUAL BASIS — 2
13. OTHER (ATTACH LIST)	(1,758,293	)	Reported
G&A allocation to subsidiaries	(1,758,293	)
	(1,758,293	)	Detail
	0		Difference
16. NON-OPERATING INCOME (ATT. LIST)	13,814		Reported
Interest Income	8,290
Gain on Sale of assets	5,524
	13,814		Detail
	0		Difference
ACCRUAL BASIS — 3
6. LOANS  & ADVANCES (ATTACH LIST)	486,566		Reported
Borrowings from Laurus	486,566
	486,566		Detail
	0		Difference
8. OTHER (ATTACH LIST)	6,255,189		Reported
Transfers in from Kitty Hawk Cargo (Case 07-44538)	1,447,402
Transfers in from Kitty Hawk Ground (Case 07-44537)	927,796
Transfers in from Kitty Hawk Aircargo (Case 07-44539)	3,655,632
Misc Refunds	224,170
Interest income	189
	6,255,189		Detail
	0		Difference

25. OTHER (ATTACH LIST)	2,779,864		Reported
401(k)	91,012
Aircraft landing and parking	43,653
Bank fees	9,200
BOD Fees	0
Cleaning	7,836
Contract labor	41,971
Employee expense reports	16,292
Executive committee fees	24,000
Flight crew expense	2,135
Freight handling	13,548
IT support	5,943
Payroll processing fees	3,962
Non-reorganization professional fees	2,000
Security	0
Shipping	4,213
Trucking	0
Misc	1,729
Transfer to Kitty Hawk Aircargo (Case 07-44539)	14,730
Refund Post-Petition Deposit — DHL	2,500,000
Void Checks	(2,360	)
	2,779,864		Detail
	0		Difference

EX-99.2

Exhibit 99.2

Monthly Operating Report

ACCRUAL BASIS

2007

CASE  NAME: Kitty Hawk Ground, Inc.

CASE  NUMBER: 07-44537

JUDGE: Russell F. Nelms

UNITED STATES BANKRUPTCY COURT

NORTHERN DISTRICT OF TEXAS

DIVISION 6

MONTHLY OPERATING REPORT

MONTH ENDING: DECEMBER 31, 2007

IN ACCORDANCE  WITH  TITLE  28,  SECTION  1746,  OF  THE  UNITED  STATES  CODE,  I DECLARE  UNDER  PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY  OPERATING  REPORT  (ACCRUAL BASIS-1  THROUGH  ACCRUAL BASIS-7)  AND THE  ACCOMPANYING  ATTACHMENTS  AND,  TO  THE  BEST  OF  MY  KNOWLEDGE,  THESE DOCUMENTS  ARE  TRUE,  CORRECT  AND  COMPLETE.  DECLARATION  OF  THE  PREPARER (OTHER  THAN  RESPONSIBLE  PARTY):  IS  BASED  ON  ALL  INFORMATION  OF  WHICH PREPARER  HAS  ANY  KNOWLEDGE.

RESPONSIBLE  PARTY:

/s/ James R. Kupferschmid	Senior VP and Chief Restructing Officer
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY	TITLE
James R. Kupferschmid	January 24, 2008
PRINTED NAME OF RESPONSIBLE PARTY	DATE
PREPARER:
/s/ Jessica L. Wilson	VP and Chief Financial Officer
ORIGINAL SIGNATURE OF PREPARER	TITLE
Jessica L. Wilson	January 24, 2008
PRINTED NAME OF PREPARER	DATE

Monthly Operating Report

ACCRUAL BASIS-12007

CASE NAME: Kitty Hawk Ground Inc.

CASE NUMBER: 07-44537

COMPARATIVE BALANCE SHEET

			SCHEDULE			MONTH			MONTH			MONTH
			AMOUNT			October 2007			November 2007			December 2007
ASSETS
1.	UNRESTRICTED CASH		$	106,914		$	294,348		$	178,251		$	68,770
2.	RESTRICTED CASH					$	0		$	0		$	0
3.	TOTAL CASH		$	106,914		$	294,348		$	178,251		$	68,770
4.	ACCOUNTS RECEIVABLE (NET)		$	7,763,152		$	7,094,959		$	4,268,132		$	2,427,370
5.	INVENTORY					$	0		$	0		$	0
6.	NOTES RECEIVABLE					$	0		$	0		$	0
7.	PREPAID EXPENSES					$	974,118		$	827,271		$	864,500
8.	OTHER (ATTACH LIST)	$			767,230	$	312,210		$	288,467		$	267,378
9.	TOTAL CURRENT ASSETS	$			8,637,296	$	8,675,635		$	5,562,121		$	3,628,018
10.	PROPERTY, PLANT & EQUIPMENT	$			1,146,152	$	2,567,960		$	2,567,960		$	2,531,210
11.	LESS: ACCUMULATED DEPRECIATION / DEPLETION	$			0	$	876,815		$	919,209		$	936,181
12.	NET PROPERTY,  PLANT & EQUIPMENT	$			1,146,152	$	1,691,145		$	1,648,751		$	1,595,029
13.	DUE FROM INSIDERS	$			0	$	0		$	0		$	0
14.	OTHER ASSETS — NET OF AMORTIZATION (ATTACH LIST)	$			0	$	2,407,948		$	0		$	0
15.	OTHER (ATTACH LIST)	$			603,884	$	0		$	0		$	0
16.	TOTAL ASSETS	$			10,387,332	$	12,774,728		$	7,210,872		$	5,223,047
POSTPETITION LIABILITIES
17.	ACCOUNTS PAYABLE					$	1,077,712		$	1,523,311		$		1,577,331
18.	TAXES PAYABLE					$	13,564		$	26,935		$		27,895
19.	NOTES PAYABLE					$	0		$	0		$		0
20.	PROFESSIONAL FEES					$	0		$	0		$		0
21.	SECURED DEBT					$	0		$	0		$		0
22.	OTHER (ATTACH LIST)					$	21,014,404		$	18,311,145		$		17,322,289
23.	TOTAL POSTPETITION LIABILITIES					$	22,105,680		$	19,861,391		$		18,927,515
PREPETITION LIABILITIES
24.	SECURED DEBT	$			17,206,526	$	1,068,310		$	1,063,770		$		1,064,069
25.	PRIORITY DEBT	$			277,316	$	0		$	0		$		0
26.	UNSECURED DEBT	$			7,503,343	$	7,928,109		$	7,934,673		$		7,868,369
27.	OTHER (ATTACH LIST)					$	0		$	0		$		0
28.	TOTAL PREPETITION LIABILITIES	$			24,987,185	$	8,996,419		$	8,998,443		$		8,932,438
29.	TOTAL LIABILITIES	$			24,987,185	$	31,102,099		$	28,859,834		$		27,859,953
EQUITY
30.	PREPETITION OWNERS’ EQUITY	0				$	(17,803,179	)	$	(17,803,179	)	$		(17,803,179	)
31.	POSTPETITION CUMULATIVE PROFIT OR (LOSS)					$	(524,192	)	$	(3,845,783	)	$		(4,833,727	)
32.	DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION)					$	0		$	0		$		0
33.	TOTAL EQUITY	$			0	$	(18,327,371	)	$	(21,648,962	)	$		(22,636,906	)
34.	TOTAL LIABILITIES & OWNERS’ EQUITY	$			24,987,185	$	12,774,728		$	7,210,872		$		5,223,047

Monthly Operating Report

ACCRUAL BASIS-2
2007

CASE NAME: Kitty Hawk Ground Inc.

CASE  NUMBER: 07-44537

INCOME STATEMENT

		MONTH			MONTH			MONTH			QUARTER
		October 2007			November 2007			December 2007			TOTAL
REVENUES
1.	GROSS REVENUES	$	2,107,185		$	(21,780	)	$	(79,171	)	$	2,006,234
2.	LESS: RETURNS & DISCOUNTS	$	0		$	0		$	0		$	0
3.	NET REVENUE	$	2,107,185		$	(21,780	)	$	(79,171	)	$	2,006,234
COST OF GOODS SOLD
4.	MATERIAL	$	0		$	0		$	0		$	0
5.	DIRECT LABOR	$	0		$	0		$	0		$	0
6.	DIRECT OVERHEAD	$	0		$	0		$	0		$	0
7.	TOTAL COST OF GOODS SOLD	$	0		$	0		$	0		$	0
8.	GROSS PROFIT	$	2,107,185		$	(21,780	)	$	(79,171	)	$	2,006,234
OPERATING EXPENSES
9.	OFFICER / INSIDER COMPENSATION	$	38,446		$	20,521		$	7,201		$	66,168
10.	SELLING & MARKETING	$	0		$	0		$	0		$	0
11.	GENERAL & ADMINISTRATIVE	$	332,049		$	471,610		$	782,852		$	1,586,511
12.	RENT & LEASE	$	139,342		$	171,876		$	20,964		$	332,182
13.	OTHER (ATTACH LIST)	$	2,069,041		$	203,610		$	32,758		$	2,305,409
14.	TOTAL OPERATING EXPENSES	$	2,578,878		$	867,617		$	843,775		$	4,290,270
15.	INCOME BEFORE NON-OPERATING INCOME & EXPENSE	$	(471,693	)	$	(889,397	)	$	(922,946	)	$	(2,284,036	)
OTHER INCOME & EXPENSES
16.	NON-OPERATING INCOME (ATT. LIST)	$	627		$	20,356		$	374		$	21,357
17.	NON-OPERATING EXPENSE (ATT. LIST)	$	0		$	0		$	23,757		$	23,757
18.	INTEREST EXPENSE	$	2,457		$	2,208		$	0		$	4,665
19.	DEPRECIATION / DEPLETION	$	23,249		$	42,395		$	31,615		$	97,259
20.	AMORTIZATION	$	27,419		$	2,407,948		$	0		$	2,435,367
21.	OTHER (ATTACH LIST)	$	0		$	0		$	0		$	0
22.	NET OTHER INCOME & EXPENSES	$	52,498		$	2,432,195		$	54,998		$	2,539,691
REORGANIZATION EXPENSES
23.	PROFESSIONAL FEES	$	0		$	0		$	0		$	0
24.	U.S. TRUSTEE FEES	$	0		$	0		$	10,000		$	10,000
25.	OTHER (ATTACH LIST)	$	0		$	0		$	0		$	0
26.	TOTAL REORGANIZATION EXPENSES	$	0		$	0		$	10,000		$	10,000
27.	INCOME TAX	$	0		$	0		$	0		$	0
28.	NET PROFIT (LOSS)	$	(524,191	)	$	(3,321,592	)	$	(987,944	)	$	(4,833,727	)

Monthly Operating Report

ACCRUAL BASIS-3
2007

CASE NAME: Kitty Hawk Ground Inc.

CASE  NUMBER:   07-44537

		MONTH			MONTH				MONTH			QUARTER
		October 2007			November 2007				December 2007			TOTAL
CASH RECEIPTS AND DISBURSEMENTS
1.	CASH — BEGINNING OF MONTH	$	106,914		$	294,349		$		178,251		$	106,914
RECEIPTS FROM OPERATIONS
2.	CASH SALES	$	0		$	0		$		0		$	0
COLLECTION OF ACCOUNTS RECEIVABLE
3.	PREPETITION	$	2,600,470		$	2,768,856		$		1,769,099		$	7,138,424
4.	POSTPETITION	$	0		$	0		$		0		$	0
5.	TOTAL OPERATING RECEIPTS	$	2,600,470		$	2,768,856		$		1,769,099		$	7,138,424
NON-OPERATING RECEIPTS
6.	LOANS & ADVANCES (ATTACH LIST)	$	0		$	0		$		0		$	0
7.	SALE OF ASSETS	$	0		$	0		$		0		$	0
8.	OTHER (ATTACH LIST)	$	(3,127	)	$	0		$		(927,796	)	$	(930,923	)
9.	TOTAL NON-OPERATING RECEIPTS	$	(3,127	)	$	0		$		(927,796	)	$	(930,923	)
10.	TOTAL RECEIPTS	$	2,597,343		$	2,768,856		$		841,303		$	6,207,501
11.	TOTAL CASH AVAILABLE	$	2,704,257		$	3,063,205		$		1,019,554		$	6,314,415
OPERATING DISBURSEMENTS
12.	NET PAYROLL	$	0		$	0		$		0		$	0
13.	PAYROLL TAXES PAID	$	0		$	0		$		0		$	0
14.	SALES, USE & OTHER TAXES PAID	$	0		$	0		$		0		$	0
15.	SECURED / RENTAL / LEASES	$	2,409,908		$	2,884,954		$		950,784		$	6,245,646
16.	UTILITIES	$	0		$	0		$		0		$	0
17.	INSURANCE	$	0		$	0		$		0		$	0
18.	INVENTORY PURCHASES	$	0		$	0		$		0		$	0
19.	VEHICLE EXPENSES	$	0		$	0		$		0		$	0
20.	TRAVEL	$	0		$	0		$		0		$	0
21.	ENTERTAINMENT	$	0		$	0		$		0		$	0
22.	REPAIRS & MAINTENANCE	$	0		$	0		$		0		$	0
23.	SUPPLIES	$	0		$	0		$		0		$	0
24.	ADVERTISING	$	0		$	0		$		0		$	0
25.	OTHER (ATTACH LIST)	$	0		$	0		$		0		$	0
26.	TOTAL OPERATING DISBURSEMENTS	$	2,409,908		$	2,884,954		$		950,784		$	6,245,646
REORGANIZATION EXPENSES
27.	PROFESSIONAL FEES	$	0		$	0		$		0		$	0
28.	U.S. TRUSTEE FEES	$	0		$	0		$		0		$	0
29.	OTHER (ATTACH LIST)	$	0		$	0		$		0		$	0
30.	TOTAL REORGANIZATION EXPENSES	$	0		$	0		$		0		$	0
31.	TOTAL DISBURSEMENTS	$	2,409,908		$	2,884,954		$		950,784		$	6,245,646
32.	NET CASH FLOW	$	187,435		$	(116,098	)	$		(109,481	)	$	(38,144	)
33.	CASH — END OF MONTH	$	294,349		$	178,251		$		68,770		$	68,770

Monthly Operating Report

ACCRUAL BASIS-42007

CASE NAME:  Kitty Hawk Ground Inc.

CASE  NUMBER:   07-44537

		SCHEDULE		MONTH		MONTH		MONTH
		AMOUNT		October 2007		November 2007		December 2007
ACCOUNTS RECEIVABLE AGING
1.	0-30			$	3,382,257	$	14,425	$	10,733
2.	31-60			$	2,723,624	$	2,320,252	$	8,620
3.	61-90			$	69,181	$	1,180,279	$	1,176,140
4.	91+			$	656,170	$	1,029,866	$	1,473,182
5.	TOTAL ACCOUNTS RECEIVABLE	$	7,763,152	$	6,831,232	$	4,544,822	$	2,668,675
6.	AMOUNT CONSIDERED UNCOLLECTIBLE	$	0	$	108,193	$	108,193	$	108,193
7.	ACCOUNTS RECEIVABLE (NET)	$	7,763,152	$	6,723,039	$	4,436,629	$	2,560,482

AGING OF POSTPETITION TAXES AND PAYABLES MONTH: December 2007

		0-30		31-60		61-90		91+
		DAYS		DAYS		DAYS		DAYS		TOTAL
TAXES PAYABLE
1.	FEDERAL	$	0	$	0	$	0	$	0	$	0
2.	STATE	$	0	$	0	$	0	$	0	$	0
3.	LOCAL	$	0	$	0	$	0	$	0	$	0
4.	OTHER (ATTACH LIST)	$	960	$	15,699	$	11,236	$	0	$	27,895
5.	TOTAL TAXES PAYABLE	$	960	$	15,699	$	11,236	$	0	$	27,895
6.	ACCOUNTS PAYABLE	$	265,929	$	981,996	$	321,473	$	7,933	$	1,577,331

STATUS OF POSTPETITION TAXES MONTH: December 2007

		BEGINNING TAX LIABILITY*		AMOUNT WITHHELD AND/ OR ACCRUED		AMOUNT PAID		ENDING TAX LIABILITY
FEDERAL
1.	WITHHOLDING**	$	0	$	10,402	$	10,402	$	0
2.	FICA-EMPLOYEE**	$	0	$	7,300	$	7,300	$	0
3.	FICA-EMPLOYER**	$	0	$	7,300	$	7,300	$	0
4.	UNEMPLOYMENT	$	0	$	7	$	7	$	0
5.	INCOME	$	0	$	0	$	0	$	0
6.	OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
7.	TOTAL FEDERAL TAXES	$	0	$	25,009	$	25,009	$	0
STATE AND LOCAL
8.	WITHHOLDING	$	0	$	2,686	$	2,686	$	0
9.	SALES	$	0	$	0	$	0	$	0
10.	EXCISE	$	0	$	0	$	0	$	0
11.	UNEMPLOYMENT	$	0	$	68	$	68	$	0
12.	REAL PROPERTY	$	0	$	0	$	0	$	0
13.	PERSONAL PROPERTY	$	0	$	0	$	0	$	0
14.	OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
15.	TOTAL STATE  & LOCAL	$	0	$	2,754	$	2,754	$	0
16.	TOTAL TAXES	$	0	$	27,763	$	27,763	$	0

*	The beginning tax liability should represent the liability from the prior month or, if this is the first operating report, the amount should be zero.
**	Attach photocopies of IRS Form  6123 or your FTD coupon and payment receipt to verify payment or deposit.

Monthly Operating Report

ACCRUAL BASIS-5
2007

CASE NAME:  Kitty Hawk, Inc.
CASE  NUMBER:	07-44537

The debtor in  possession must complete the reconciliation below for each bank account, including all  general,  payroll and  tax accounts, as well as all savings and investment accounts, money market accounts, certificates of  deposit,  government obligations, etc. Accounts with restricted funds should be identified by placing an asterisk next to the account number.  Attach additional sheets if  necessary.

BANK RECONCILIATIONS MONTH: December 2007

		Account #1			Account #2		Account #3		TOTAL
A.	BANK:	Capital One			N/A		N/A
B.	ACCOUNT NUMBER:	3620477825
C.	PURPOSE (TYPE):	Depository
1.	BALANCE PER BANK STATEMENT	$	68,853						$	68,853
2.	ADD: TOTAL DEPOSITS NOT CREDITED	$	0						$	0
3.	SUBTRACT: OUTSTANDING CHECKS	$	0						$	0
4.	OTHER RECONCILING ITEMS	$	(83	)					$	(83	)
5.	MONTH END BALANCE PER BOOKS	$	68,770		$	0	$	0	$	68,770
6.	NUMBER OF LAST CHECK WRITTEN	None

INVESTMENT ACCOUNTS

			DATE OF	TYPE OF	PURCHASE		CURRENT
			PURCHASE	INSTRUMENT	PRICE		VALUE
BANK, ACCOUNT NAME & NUMBER
7.		N/A
8.
9.
10.
11.		TOTAL INVESTMENTS			$	0	$	0
CASH
12.	CURRENCY ON HAND						$	0
13.	TOTAL CASH — END OF MONTH						$	68,770

Monthly Operating Report

ACCRUAL BASIS-6
2007

CASE NAME:  Kitty Hawk Ground, Inc.
CASE  NUMBER:	07-44537

	MONTH: December 2007
PAYMENTS TO INSIDERS AND PROFESSIONALS

OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS (AS  DEFINED IN SECTION  101 (31) (A)-(F)  OF THE U.S. BANKRUPTCY CODE) AND TO PROFESSIONALS.  ALSO, FOR PAYMENTS TO INSIDERS, IDENTIFY THE TYPE OF COMPENSATION PAID (e.g. SALARY, BONUS, COMMISSIONS, INSURANCE, HOUSING ALLOWANCE, TRAVEL, CAR ALLOWANCE, ETC.).  ATTACH ADDITIONAL SHEETS IF NECESSARY.

INSIDERS

		TYPE OF	AMOUNT		TOTAL PAID
NAME		PAYMENT	PAID		TO DATE
1.	Gary Jensen	Salary, Expense Reports	$	3,258	$	34,027
2.	Mark Lasky	Salary, Expense Reports	$	0	$	12,078
3.	Dan Yongue	Salary, Expense Reports	$	3,943	$	25,292
4.
5.
6.	TOTAL PAYMENTS TO INSIDERS		$	7,201	$	71,397

PROFESSIONALS

		DATE OF COURT
		ORDER AUTHORIZING	AMOUNT		AMOUNT		TOTAL PAID		TOTAL INCURRED
NAME		PAYMENT	APPROVED		PAID		TO DATE		& UNPAID*
1.	See Case #07-44536, Kitty Hawk, Inc.
2.
3.
4.
5.
6.	TOTAL PAYMENTS TO PROFESSIONALS		$	0	$	0	$	0	$	0

*   INCLUDE ALL FEES INCURRED, BOTH APPROVED AND UNAPPROVED

POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE PROTECTION PAYMENTS

		SCHEDULED		AMOUNTS
		MONTHLY		PAID		TOTAL
		PAYMENTS		DURING		UNPAID
NAME OF CREDITOR		DUE		MONTH		POSTPETITION
1.	AICCO, cancelled during 12/07	$	106,001	$	0	$	212,002
2.	Crown Credit, cancelled during 12/07	$	12,474	$	0	$	24,948
3.	Other Facility leases cancelled 11/07
4.
5.
6.	TOTAL	$	118,475	$	0	$	236,950

Monthly Operating Report

ACCRUAL BASIS-7
2007

CASE NAME: Kitty Hawk Ground, Inc.

CASE  NUMBER: 07-44537

	MONTH: December 2007
QUESTIONNAIRE

		YES	NO
1.	HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE THE NORMAL COURSE OF BUSINESS THIS REPORTING PERIOD?	X
2.	HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR IN POSSESSION ACCOUNT?		X
3.	ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES?		X
4.	HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES THIS REPORTING PERIOD?	X
5.	HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE DEBTOR FROM ANY PARTY?		X
6.	ARE ANY POSTPETITION PAYROLL TAXES PAST DUE?		X
7.	ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES PAST DUE?	X
8.	ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE?	X
9.	ARE ANY OTHER POSTPETITION TAXES PAST DUE?		X
10.	ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS DELINQUENT?	X
11.	HAVE ANY PREPETITION TAXES BEEN PAID DURING THE REPORTING PERIOD?		X
12.	ARE ANY WAGE PAYMENTS PAST DUE?		X

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS “YES,” PROVIDE A DETAILED EXPLANATION OF EACH ITEM.  ATTACH ADDITIONAL SHEETS IF NECESSARY.

1 — Misc equipment sold when locations closed i/a/w de minimis asset sale motion approved by the Court

7, 8,10 — DIP order in place with Laurus does not allow post-petition payments after 10/29 until Laurus is paid in full; expect payments to resume in 1/08

4 — Payment made on accrued vacation balances in accordance with first day orders.

INSURANCE

		YES	NO
1.	ARE WORKER’S COMPENSATION, GENERAL LIABILITY AND OTHER NECESSARY INSURANCE COVERAGES IN EFFECT?		X
2.	ARE ALL PREMIUM PAYMENTS PAID CURRENT?		X
3.	PLEASE ITEMIZE POLICIES BELOW.

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS “NO,” OR IF ANY POLICIES HAVE BEEN CANCELLED OR NOT RENEWED DURING THIS REPORTING PERIOD, PROVIDE AN EXPLANATION BELOW.  ATTACH ADDITIONAL SHEETS IF NECESSARY.

See summary of policies below for status.

INSTALLMENT PAYMENTS

TYPE OF				PAYMENT AMOUNT
POLICY	CARRIER	PERIOD COVERED		& FREQUENCY
Cargo Liability	The Hanover Insurance Group	6/1/07 – 5/31/08		$49,538.50 Annual — paid in full
General Liability	Chubb	6/1/07 – 5/31/08		$45,004 Annual — paid in full
Commerical Umbrella	Lexington	6/1/07 – 5/31/08	cancelled	$48,684.11, monthly financed
Auto Physical Damage	Lloyd’s of London	6/1/07 – 5/31/08		$14,000 (est), monthly
Workers Compensation	American Home Assurance	6/1/07 – 5/31/08	cancelled	$57,316.96, monthly financed
Business Auto	American Home Assurance	6/1/07 – 5/31/08		$42,259 Annual — paid in full
Trucker Liability	American Home Assurance	6/1/07 – 5/31/08	cancelled	$63,829, monthly

Footnotes Supplement

ACCRUAL BASIS-7
2007

CASE NAME: Kitty Hawk Ground, Inc.
CASE  NUMBER: 07-44537
	MONTH: November 2007

Accrual Basis	Line
Form Number	Number	Footnote/Explanation
3	8	All available cash received into each subsidiary cash account was transferred to paydown the Laurus Master Fund Secured Debt at Kitty Hawk, Inc. (Case #07-44536)
3	31	All disbursements (either by wire transfer or check), including payroll, are disbursed out of the Kitty Hawk, Inc. disbursement accounts (Case #07-44536)
4	6	All assessments of uncollectible accounts receivable are done at Kitty Hawk, Inc.  All reserves are recorded at Inc. and pushed down to Inc.’s subsidiaries as deemed necessary. (Case #07-44536)
6	Secured Notes	AICCO finance agreement was cancelled when underlying insurance policies were cancelled; pending Stipulation with Court; Crown Credit — all forklifts were returned mid November 2007, waiting final administrative claim to make payment
1	14	The intangible assets were written down to zero once operations ceased.
3	15	Cash receipts collected was automatically transferred to Laurus Master Fund to paydown revolver until paid in full on 12/07; afterwards, cash receipts tranferred directly to Kitty Hawk, Inc. (Case #07-44536)
4	AR - 7	Total Accounts Receivable does not agree to Accrual Basis — 1, line 4 due to Accrued Accounts Receivable balance at the end of the reporting cycle, $199,280.

CASE NAME: Kitty Hawk Ground, Inc.

CASE NUMBER: 07-44537

Details of Other Items

	December 2007
ACCRUAL BASIS — 1
8. OTHER (ATTACH LIST)	267,378		Reported
A/R — 401(k)	(119	)
A/R — Owner/Operator	22,902
A/R — Employees	3,488
A/R — Payroll Advance	(101	)
A/R — Other	40,887
Deposits	200,321
	267,378		Detail
	0		Difference
14. OTHER ASSETS, NET OF AMORTIZATION	0		Reported
Non compete — Scherer	0
Non compete — Bonino	0
Goodwill — ACT	0
Intangibles — Customer List	0
Intangibles — Trade Name	0
	0		Detail
	0		Difference
22. OTHER (ATTACH LIST)	17,322,289		Reported
General Accrued AP	544,054
Intercompany Payables	16,784,249
Accrued Wages	(5,575	)
Accrued 401(k) contribution	(439	)
	17,322,289		Detail
	0		Difference
ACCRUAL BASIS — 2
13. OTHER OPERATING EXPENSE	32,758		Reported
Trucking expense	(906	)
Driver Wages	2,015
Dispatch Wages	7,032
Truck Lease	15,548
Allocation to Cargo	0
Fuel	(5,834	)
Truck Maintenance	835
Freight Handling Wages	13,381
Freight Handling Contract Costs	0
Equipment Lease	0
Non-reorganization Professional Fees	0
Other support	687
	32,758		Detail
	0		Difference
16. NON-OPERATING INCOME (ATT. LIST)	374		Reported
Interest income	374
	374		Detail
	0		Difference
17. NON-OPERATING EXPENSE (ATT. LIST)	23,757		Reported
Loss on Sale of Assets	23,757
	23,757		Detail
	0		Difference
ACCRUAL BASIS — 3
8. OTHER (ATTACH LIST)	(927,796	)	Reported
Transfer to Kitty Hawk, Inc. (Case 07-44536)	(927,796	)
	(927,796	)	Detail
	0		Difference
ACCRUAL BASIS — 4
Aging of Post-petition Taxes	27,895		Reported
Accrued franchise taxes	960
O/O Fuel Tax	2,100
Fuel Tax	24,835
	27,895		Detail
	0		Difference

EX-99.3

Exhibit 99.3

Monthly Operating Report

ACCRUAL BASIS

2007

CASE  NAME: Kitty Hawk Cargo, Inc.

CASE  NUMBER: 07-44538

JUDGE: Russell F. Nelms

UNITED STATES BANKRUPTCY COURT

NORTHERN DISTRICT OF TEXAS

DIVISION 6

MONTHLY OPERATING REPORT

MONTH ENDING: DECEMBER 31, 2007

IN ACCORDANCE  WITH  TITLE  28,  SECTION  1746,  OF  THE  UNITED  STATES  CODE,  IDECLARE  UNDER  PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWINGMONTHLY  OPERATING  REPORT  (ACCRUAL BASIS-1  THROUGH  ACCRUAL BASIS-7)  AND THE  ACCOMPANYING  ATTACHMENTS  AND,  TO  THE  BEST  OF  MY  KNOWLEDGE,  THESE DOCUMENTS  ARE  TRUE,  CORRECT  AND  COMPLETE.  DECLARATION  OF  THE  PREPARER (OTHER  THAN  RESPONSIBLE  PARTY):  IS  BASED  ON  ALL  INFORMATION  OF  WHICH PREPARER  HAS  ANY  KNOWLEDGE.

RESPONSIBLE  PARTY:

/s/ James R. Kupferschmid	Senior VP and Chief Restructing Officer
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY	TITLE
James R. Kupferschmid	January 24, 2008
PRINTED NAME OF RESPONSIBLE PARTY	DATE
PREPARER:
/s/ Jessica L. Wilson	VP and Chief Financial Officer
ORIGINAL SIGNATURE OF PREPARER	TITLE
Jessica L. Wilson	January 24, 2008
PRINTED NAME OF PREPARER	DATE

Monthly Operating Report

ACCRUAL BASIS-1

2007

CASE NAME: Kitty Hawk Cargo, Inc.

CASE NUMBER: 07-44538

COMPARATIVE BALANCE SHEET

		SCHEDULE		MONTH			MONTH			MONTH
		AMOUNT		October 2007			November 2007			December 2007
ASSETS
1.	UNRESTRICTED CASH	$	901,444	$	1,369,171		$	783,166		$	68,445
2.	RESTRICTED CASH			$	0		$	0		$	0
3.	TOTAL CASH	$	901,444	$	1,369,171		$	783,166		$	68,445
4.	ACCOUNTS RECEIVABLE (NET)	$	14,522,323	$	12,340,333		$	3,826,311		$	1,013,546
5.	INVENTORY			$	0		$	0		$	0
6.	NOTES RECEIVABLE			$	0		$	0		$	0
7.	PREPAID EXPENSES			$	161,981		$	156,667		$	153,917
8.	OTHER (ATTACH LIST)	$	129,586	$	40,715		$	56,513		$	56,359
9.	TOTAL CURRENT ASSETS	$	15,553,353	$	13,912,200		$	4,822,657		$	1,292,267
10.	PROPERTY, PLANT & EQUIPMENT	$	511,103	$	2,906,397		$	2,906,397		$	2,573,264
11.	LESS: ACCUMULATED DEPRECIATION / DEPLETION	$	0	$	2,121,736		$	2,158,768		$	2,090,922
12.	NET PROPERTY, PLANT & EQUIPMENT	$	511,103	$	784,661		$	747,629		$	482,342
13.	DUE FROM INSIDERS	$	0	$	0		$	0		$	0
14.	OTHER ASSETS — NET OF AMORTIZATION (ATTACH LIST)	$	0	$	0		$	0		$	0
15.	OTHER (ATTACH LIST)	$	150,000	$	0		$	0		$	0
16.	TOTAL ASSETS	$	16,214,456	$	14,696,861		$	5,570,286		$	1,774,609
POSTPETITION LIABILITIES
17.	ACCOUNTS PAYABLE			$	346,032		$	454,865		$	337,025
18.	TAXES PAYABLE			$	13,470		$	5,249		$	12,170
19.	NOTES PAYABLE			$	0		$	0		$	0
20.	PROFESSIONAL FEES			$	0		$	0		$	0
21.	SECURED DEBT			$	0		$	0		$	0
22.	OTHER (ATTACH LIST)			$	34,272,677		$	25,886,488		$	22,752,796
23.	TOTAL POSTPETITION LIABILITIES			$	34,632,179		$	26,346,602		$	23,101,991
PREPETITION LIABILITIES
24.	SECURED DEBT	$	16,684,744	$	139,928		$	139,611		$	137,746
25.	PRIORITY DEBT	$	223,906	$	0		$	0		$	0
26.	UNSECURED DEBT	$	3,562,306	$	4,571,009		$	4,502,984		$	4,388,326
27.	OTHER (ATTACH LIST)			$	0		$	0		$	0
28.	TOTAL PREPETITION LIABILITIES	$	20,470,956	$	4,710,937		$	4,642,595		$	4,526,072
29.	TOTAL LIABILITIES	$	20,470,956	$	39,343,116		$	30,989,197		$	27,628,063
EQUITY
30.	PREPETITION OWNERS’ EQUITY			$	(23,236,677	)	$	(23,236,677	)	$	(23,236,677	)
31.	POSTPETITION CUMULATIVE PROFIT OR (LOSS)			$	(1,409,578	)	$	(2,182,234	)	$	(2,616,777	)
32.	DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION)			$	0		$	0		$	0
33.	TOTAL EQUITY	$	0	$	(24,646,255	)	$	(25,418,911	)	$	(25,853,454	)
34.	TOTAL LIABILITIES & OWNERS’ EQUITY	$	20,470,956	$	14,696,861		$	5,570,286		$	1,774,609

Monthly Operating Report

ACCRUAL BASIS-2

2007

CASE NAME: Kitty Hawk Cargo, Inc.

CASE NUMBER: 07-44538

INCOME STATEMENT

				MONTH			MONTH			MONTH			QUARTER
				October 2007			November 2007			December 2007			TOTAL
REVENUES
1.	GROSS REVENUES			$	4,887,660		$	(20,196	)	$	19,249		$	4,886,713
2.	LESS: RETURNS & DISCOUNTS			$	0		$	0		$	0		$	0
3.	NET REVENUE			$	4,887,660		$	(20,196	)	$	19,249		$	4,886,713
COST OF GOODS SOLD
4.	MATERIAL			$	0		$	0		$	0		$	0
5.	DIRECT LABOR			$	0		$	0		$	0		$	0
6.	DIRECT OVERHEAD			$	0		$	0		$	0		$	0
7.	TOTAL COST OF GOODS SOLD			$	0		$	0		$	0		$	0
8.	GROSS PROFIT			$	4,887,660		$	(20,196	)	$	19,249		$	4,886,713
OPERATING EXPENSES
9.		OFFICER / INSIDER COMPENSATION		$	5,769		$	3,462		$	0		$	9,231
10.		SELLING & MARKETING		$	127,489		$	7,772		$	2,577		$	137,838
11.		GENERAL & ADMINISTRATIVE		$	524,543		$	423,736		$	505,054		$	1,453,333
12.		RENT & LEASE		$	124,862		$	227,416		$	64,760		$	417,038
13.		OTHER (ATTACH LIST)		$	5,492,493		$	74,316		$	15,134		$	5,581,943
14.		TOTAL OPERATING EXPENSES		$	6,275,156		$	736,702		$	587,525		$	7,599,383
15.		INCOME BEFORE NON-OPERATING INCOME & EXPENSE		$	(1,387,496	)	$	(756,898	)	$	(568,276	)	$	(2,712,670	)
OTHER INCOME & EXPENSES
16.			NON-OPERATING INCOME (ATT. LIST)	$	0		$	21,366		$	369,015		$	390,381
17.			NON-OPERATING EXPENSE (ATT. LIST)	$	0		$	0		$	228,393		$	228,393
18.			INTEREST EXPENSE	$	0		$	91		$	449		$	540
19.			DEPRECIATION / DEPLETION	$	22,082		$	37,033		$	(3,560	)	$	55,555
20.			AMORTIZATION	$	0		$	0		$	0		$	0
21.			OTHER (ATTACH LIST)	$	0		$	0		$	0		$	0
22.			NET OTHER INCOME & EXPENSES	$	22,082		$	15,758		$	(143,733	)	$	(105,893	)
REORGANIZATION EXPENSES
23.			PROFESSIONAL FEES	$	0		$	0		$	0		$	0
24.			U.S. TRUSTEE FEES	$	0		$	0		$	10,000		$	10,000
25.			OTHER (ATTACH LIST)	$	0		$	0		$	0		$	0
26.			TOTAL REORGANIZATION EXPENSES	$	0		$	0		$	10,000		$	10,000
27.			INCOME TAX	$	0		$	0		$	0		$	0
28.			NET PROFIT (LOSS)	$	(1,409,578	)	$	(772,656	)	$	(434,543	)	$	(2,616,777	)

Monthly Operating Report

ACCRUAL BASIS-3

2007

CASE NAME: Kitty Hawk Cargo, Inc.

CASE NUMBER: 07-44538

		MONTH		MONTH			MONTH			QUARTER
		October 2007		November 2007			December 2007			TOTAL
CASH RECEIPTS AND DISBURSEMENTS
1.	CASH — BEGINNING OF MONTH	$	901,444	$	1,369,171		$	783,166		$	901,444
RECEIPTS FROM OPERATIONS
2.	CASH SALES	$	0	$	0		$	0		$	0
COLLECTION OF ACCOUNTS RECEIVABLE
3.	PREPETITION	$	7,326,436	$	9,431,173		$	2,761,940		$	19,519,549
4.	POSTPETITION	$	0	$	0		$	0		$	0
5.	TOTAL OPERATING RECEIPTS	$	7,326,436	$	9,431,173		$	2,761,940		$	19,519,549
NON-OPERATING RECEIPTS
6.	LOANS & ADVANCES (ATTACH LIST)	$	0	$	0		$	0		$	0
7.	SALE OF ASSETS	$	0	$	0		$	0		$	0
8.	OTHER (ATTACH LIST)	$	2,350	$	0		$	(1,447,402	)	$	(1,445,052	)
9.	TOTAL NON-OPERATING RECEIPTS	$	2,350	$	0		$	(1,447,402	)	$	(1,445,052	)
10.	TOTAL RECEIPTS	$	7,328,786	$	9,431,173		$	1,314,538		$	18,074,497
11.	TOTAL CASH AVAILABLE	$	8,230,230	$	10,800,344		$	2,097,704		$	18,975,941
OPERATING DISBURSEMENTS
12.	NET PAYROLL	$	0	$	0		$	0		$	0
13.	PAYROLL TAXES PAID	$	0	$	0		$	0		$	0
14.	SALES, USE & OTHER TAXES PAID	$	0	$	0		$	0		$	0
15.	SECURED / RENTAL / LEASES	$	6,857,106	$	10,010,919		$	2,024,612		$	18,892,637
16.	UTILITIES	$	0	$	0		$	0		$	0
17.	INSURANCE	$	0	$	0		$	0		$	0
18.	INVENTORY PURCHASES	$	0	$	0		$	0		$	0
19.	VEHICLE EXPENSES	$	0	$	0		$	0		$	0
20.	TRAVEL	$	0	$	0		$	0		$	0
21.	ENTERTAINMENT	$	0	$	0		$	0		$	0
22.	REPAIRS  & MAINTENANCE	$	0	$	0		$	0		$	0
23.	SUPPLIES	$	0	$	0		$	0		$	0
24.	ADVERTISING	$	0	$	0		$	0		$	0
25.	OTHER (ATTACH LIST)	$	3,953	$	6,259		$	4,647		$	14,859
26.	TOTAL OPERATING DISBURSEMENTS	$	6,861,059	$	10,017,178		$	2,029,259		$	18,907,496
REORGANIZATION EXPENSES
27.	PROFESSIONAL FEES	$	0	$	0		$	0		$	0
28.	U.S. TRUSTEE FEES	$	0	$	0		$	0		$	0
29.	OTHER (ATTACH LIST)	$	0	$	0		$	0		$	0
30.	TOTAL REORGANIZATION EXPENSES	$	0	$	0		$	0		$	0
31.	TOTAL DISBURSEMENTS	$	6,861,059	$	10,017,178		$	2,029,259		$	18,907,496
32.	NET CASH FLOW	$	467,727	$	(586,005	)	$	(714,721	)	$	(832,999	)
33.	CASH — END OF MONTH	$	1,369,171	$	783,166		$	68,445		$	68,445

Monthly Operating Report

ACCRUAL BASIS-4

2007

CASE NAME: Kitty Hawk Cargo, Inc.

CASE NUMBER: 07-44538

							SCHEDULE		MONTH			MONTH				MONTH
							AMOUNT		October 2007			November 2007				December 2007
ACCOUNTS RECEIVABLE AGING
1.	0-30								$	10,350,494		$	(200,386	)		$	(99,587	)
2.	31-60								$	2,329,444		$	3,884,160			$	(89,793	)
3.	61-90								$	172,339		$	485,728			$	1,236,194
4.	91+								$	(343,249	)	$	(268,040	)		$	40,749
5.	TOTAL ACCOUNTS RECEIVABLE						$	14,522,323	$	12,509,028		$	3,901,462			$	1,087,563
6.	AMOUNT CONSIDERED UNCOLLECTIBLE								$	174,153		$	75,351			$	74,213
7.	ACCOUNTS RECEIVABLE (NET)						$	14,522,323	$	12,334,875		$	3,826,111			$	1,013,350
AGING OF POSTPETITION TAXES AND PAYABLES												MONTH:				December 2007
		0-30					31-60		61-90			91+
		DAYS					DAYS		DAYS			DAYS				TOTAL
TAXES PAYABLE
1.	FEDERAL	$	0				$	0	$	0		$	0			$	0
2.	STATE	$	0				$	0	$	0		$	0			$	0
3.	LOCAL	$	0				$	0	$	0		$	0			$	0
4.	OTHER (ATTACH LIST)	$	12,170				$	0	$	0		$	0			$	12,170
5.	TOTAL TAXES PAYABLE	$	12,170				$	0	$	0		$	0			$	12,170
6.	ACCOUNTS PAYABLE	$	(93,796		)		$	313,135	$	95,261		$	22,425			$	337,025
STATUS OF POSTPETITION TAXES												MONTH:			December 2007
				BEGINNING					AMOUNT							ENDING
				TAX					WITHHELD AND/			AMOUNT				TAX
				LIABILITY*					0R ACCRUED			PAID				LIABILITY
FEDERAL
1.	WITHHOLDING**			$		0			$	12,059		$	12,059			$	0
2.	FICA-EMPLOYEE**			$		0			$	7,594		$	7,594			$	0
3.	FICA-EMPLOYER**			$		0			$	7,594		$	7,594			$	0
4.	UNEMPLOYMENT			$		0			$	5		$	5			$	0
5.	INCOME			$		0			$	0		$	0			$	0
6.	OTHER (ATTACH LIST)			$		0			$	0		$	0			$	0
7.	TOTAL FEDERAL TAXES			$		0			$	27,252		$	27,252			$	0
STATE AND LOCAL
8.	WITHHOLDING			$		0			$	4,250		$	4,250			$	0
9.	SALES			$		0			$	0		$	0			$	0
10.	EXCISE			$		0			$	0		$	0			$	0
11.	UNEMPLOYMENT			$		0			$	5		$	5			$	0
12.	REAL PROPERTY			$		0			$	0		$	0			$	0
13.	PERSONAL PROPERTY			$		0			$	0		$	0			$	0
14.	OTHER (ATTACH LIST)			$		0			$	0		$	0			$	0
15.	TOTAL STATE  & LOCAL			$		0			$	4,255		$	4,255			$	0
16.	TOTAL TAXES			$		0			$	31,507		$	31,507			$	0

*	The beginning tax liability should represent the liability from the prior month or, if this is the first operating report, the amount should be zero
**	Attach photocopies of IRS Form  6123 or your FTD coupon and payment receipt to verify payment or deposit.

Monthly Operating Report

ACCRUAL BASIS-5

2007

CASE NAME: Kitty Hawk Cargo, Inc

CASE NUMBER: 07-44538

The debtor in possession must complete the reconciliation below for each bank account, including all general, payroll and tax accounts, as well as all savings and investment accounts, money market accounts, certificates of deposit, government obligations, etc. Accounts with restricted funds should be identified by placing an asterisk next to the account number. Attach additional sheets if necessary.

	MONTH:	December 2007
BANK RECONCILIATIONS

		Account #1			Account #2		Account #3		TOTAL
A.	BANK:	Capital One			N/A		N/A
B.	ACCOUNT NUMBER:	3620477841
C.	PURPOSE (TYPE):	Depository
1.	BALANCE PER BANK STATEMENT	$	66,597						$	66,597
2.	ADD: TOTAL DEPOSITS NOT CREDITED	$	0						$	0
3.	SUBTRACT: OUTSTANDING CHECKS	$	0						$	0
4.	OTHER RECONCILING ITEMS	$	(502	)					$	(502	)
5.	MONTH END BALANCE PER BOOKS	$	66,095		$	0	$	0	$	66,095
6.	NUMBER OF LAST CHECK WRITTEN	None

INVESTMENT ACCOUNTS
		DATE OF	TYPE OF	PURCHASE		CURRENT
		PURCHASE	INSTRUMENT	PRICE		VALUE
BANK, ACCOUNT NAME  & NUMBER
7.	N/A
8.
9.
10.
11.	TOTAL INVESTMENTS			$	0	$		0
CASH
12.	CURRENCY ON HAND					$	2,350
13.	TOTAL CASH — END OF MONTH					$	68,445

Monthly Operating Report

ACCRUAL BASIS-6

2007

CASE NAME: Kitty Hawk Cargo, Inc.

CASE NUMBER: 07-44538

MONTH: December 2007

PAYMENTS TO INSIDERS AND PROFESSIONALS

OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS (AS DEFINED IN SECTION  101 (31) (A)-(F)  OF THE U.S. BANKRUPTCY CODE) AND TO PROFESSIONALS. ALSO, FOR PAYMENTS TO INSIDERS, IDENTIFY THE TYPE OF COMPENSATION PAID (e.g. SALARY, BONUS, COMMISSIONS, INSURANCE, HOUSING ALLOWANCE, TRAVEL, CAR ALLOWANCE, ETC.). ATTACH ADDITIONAL SHEETS IF NECESSARY.

INSIDERS

		TYPE OF	AMOUNT		TOTAL PAID
	NAME	PAYMENT	PAID		TO DATE
1.	Gregg Saylor	Salary, Expense Reports	$	0	$	9,231
2.
3.
4.
5.
6.	TOTAL PAYMENTS TO INSIDERS		$	0	$	9,231

PROFESSIONALS

		DATE OF COURT													TOTAL
		ORDER AUTHORIZING	AMOUNT			AMOUNT			TOTAL PAID						INCURRED
	NAME	PAYMENT	APPROVED			PAID			TO DATE						& UNPAID*
1.	See Case #07-44536, Kitty Hawk, Inc.
2.
3.
4.
5.
6.	TOTAL PAYMENTS TO PROFESSIONALS		$	0		$		0	$	0					$	0
*	INCLUDE ALL FEES INCURRED, BOTH APPROVED AND UNAPPROVED
POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE PROTECTION PAYMENTS
					SCHEDULED						AMOUNTS
					MONTHLY						PAID		TOTAL
					PAYMENTS						DURING		UNPAID
NAME OF CREDITOR					DUE						MONTH		POSTPETITION
1.	Crown Credit (4 leases), lease cancelled 11/07				$		1,434				$	0	$	2,868
2.	Duxbury Capital, lease cancelled 11/07				$		669				$	0	$	1,338
3.	Coactive Capital				$		1,048				$	3,332	$	0
4.	US Bank				$		168,775				$	338,775	$	0
5.	Other facility leases cancelled 11/07
6.	TOTAL				$		171,926				$	342,107	$	4,206

Monthly Operating Report

ACCRUAL BASIS-7

2007

CASE NAME: Kitty Hawk Cargo, Inc.

CASE NUMBER: 07-44538

MONTH: December 2007

QUESTIONNAIRE
		YES	NO
1.	HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE THE NORMAL COURSE OF BUSINESS THIS REPORTING PERIOD?	X
2.	HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR IN POSSESSION ACCOUNT?			X
3.	ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES?			X
4.	HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES THIS REPORTING PERIOD?	X
5.	HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE DEBTOR FROM ANY PARTY?			X
6.	ARE ANY POSTPETITION PAYROLL TAXES PAST DUE?			X
7.	ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES PAST DUE?			X
8.	ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE?	X
9.	ARE ANY OTHER POSTPETITION TAXES PAST DUE?	X
10.	ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS DELINQUENT?	X
11.	HAVE ANY PREPETITION TAXES BEEN PAID DURING THE REPORTING PERIOD?			X
12.	ARE ANY WAGE PAYMENTS PAST DUE?			X

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS “YES,” PROVIDE A DETAILED EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY.

1 — Misc equipment sold when locations closed i/a/w de minimis asset sale motion approved by the Court

8, 10 — DIP order in place with Laurus does not allow post-petition payments after 10/29 until Laurus is paid in full; expect payments to resume in 1/08

4 — Payment made on accrued vacation balances in accordance with first day orders.

INSURANCE
		YES	NO
1.	ARE WORKER’S COMPENSATION, GENERAL LIABILITY AND OTHER
	NECESSARY INSURANCE COVERAGES IN EFFECT?	X
2.	ARE ALL PREMIUM PAYMENTS PAID CURRENT?	X
3.	PLEASE ITEMIZE POLICIES BELOW.

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS “NO,” OR IF ANY POLICIES HAVE BEEN CANCELLED OR NOT RENEWED DURING THIS REPORTING PERIOD, PROVIDE AN EXPLANATION BELOW.ATTACH ADDITIONAL SHEETS IF NECESSARY.

INSTALLMENT PAYMENTS

TYPE OF			PAYMENT AMOUNT
POLICY	CARRIER	PERIOD COVERED	& FREQUENCY
See Case #07-44536, Kitty Hawk, Inc.

Footnotes Supplement

ACCRUAL BASIS

2007

CASE NAME: Kitty Hawk Cargo, Inc.

CASE NUMBER: 07-44538

MONTH: December 2007

Accrual Basis	Line
Form Number	Number	Footnote/Explanation
3	8	All available cash received into each subsidiary cash account was transferred to paydown the Laurus Master Fund Secured Debt at Kitty Hawk, Inc. (Case #07-44536)
3	31	All disbursements (either by wire transfer or check), including payroll, are disbursed out of the Kitty Hawk, Inc. disbursement accounts (Case #07-44536)
4	6	All assessments of uncollectible accounts receivable are done at Kitty Hawk, Inc. All reserves are recorded at Inc. and pushed down to Inc.’s subsidiaries as deemed necessary. (Case #07-44536)
7		All insurance policies for Kitty Hawk Cargo, Inc. are carried in the name of Kitty Hawk, Inc. (Case #07-44536)
3	15	Cash receipts collected was automatically transferred to Laurus Master Fund to paydown revolver until paid in full on 12/07; afterwards, cash receipts tranferred directly to Kitty Hawk, Inc. (Case #07-44536)
4	AR - 7	Total Accounts Receivable does not agree to Accrual Basis — 1, line 4 due to miscellaneous reconciling item of $196.

Case Name: Kitty Hawk Cargo, Inc.

Case Number: 07-44538

Details of Other Items

	December 2007
ACCRUAL BASIS — 1
8. OTHER (ATTACH LIST)	56,359		Reported
A/R Employees	988
A/R Other	22,831
Deposits	32,634
A/R — 401(k) loan	(94	)
	56,359		Detail
	0		Difference
22. OTHER (ATTACH LIST)	22,752,796		Reported
Intercompany Payables	22,653,097
Accrued Wages	16,440
Accrued 401(k)	2,114
General Accrued AP	81,145
Accrued Union Dues	0
	22,752,796		Detail
	0		Difference
ACCRUAL BASIS — 2
13. OTHER OPERATING EXPENSE	15,134		Reported
Airline Allocation	0
Chartered Airline Expense	0
Trucking expense	(4,711	)
Allocation from Ground	0
Aircraft Ground Operations	3,340
Fuel	0
Freight Handling Wages	17,815
Freight Handling Contractors	(7,233	)
GSE Wages	5,923
Other Support	0
Non-reorganization Professional Fees	0
	15,134		Detail
	0		Difference
16. NON-OPERATING INCOME (ATT. LIST)	369,015		Reported
Gain on Sale of Assets	366,093
Other misc income	2,922
	369,015		Detail
	0		Difference
17. NON-OPERATING EXPENSE (ATT. LIST)	228,393		Reported
Write off software development costs	228,393
	228,393		Detail
	0		Difference
ACCRUAL BASIS — 3
8. OTHER (ATTACH LIST)	(1,447,402	)	Reported
Transfer to Inc (#07-44536)	(1,447,402	)
	(1,447,402	)	Detail
	0		Difference
25. OTHER (ATTACH LIST)	4,647		Reported
Bank Charges	4,647
	4,647		Detail
	0		Difference
ACCRUAL BASIS — 4
Aging of Post-petition Taxes	12,170		Reported
Accrued franchise tax	341
Accrued property tax	25,484
Federal Excise Tax	(13,655	)
	12,170		Detail
	0		Difference

EX-99.4

Exhibit 99.4

Monthly Operating Report

ACCRUAL BASIS

2007

CASE NAME: Kitty Hawk Aircargo, Inc.

CASE NUMBER: 07-44539

JUDGE: Russell F. Nelms

UNITED STATES BANKRUPTCY COURT

NORTHERN DISTRICT OF TEXAS

DIVISION 6

MONTHLY OPERATING REPORT

MONTH ENDING: DECEMBER 31, 2007

IN ACCORDANCE  WITH  TITLE  28,  SECTION  1746,  OF  THE  UNITED  STATES  CODE, I DECLARE UNDER  PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY  OPERATING  REPORT  (ACCRUAL BASIS-1  THROUGH  ACCRUAL BASIS-7)  AND THE  ACCOMPANYING  ATTACHMENTS  AND,  TO  THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE  TRUE, CORRECT AND COMPLETE. DECLARATION  OF  THE  PREPARER (OTHER  THAN  RESPONSIBLE PARTY): IS BASED ON ALL INFORMATION  OF  WHICH PREPARER  HAS  ANY  KNOWLEDGE.

RESPONSIBLE  PARTY:

/s/ James R. Kupferschmid	Senior VP and Chief Restructing Officer
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY	TITLE
James R. Kupferschmid	January 24, 2008
PRINTED NAME OF RESPONSIBLE PARTY	DATE
PREPARER:
/s/ Jessica L. Wilson	VP and Chief Financial Officer
ORIGINAL SIGNATURE OF PREPARER	TITLE
Jessica L. Wilson	January 24, 2008
PRINTED NAME OF PREPARER	DATE

Monthly Operating Report

ACCRUAL BASIS-1

2007

CASE NAME: Kitty Hawk Aircargo, Inc.

CASE  NUMBER: 07-44539

COMPARATIVE BALANCE SHEET

		SCHEDULE		MONTH			MONTH			MONTH
		AMOUNT		October 2007			November 2007			December 2007
ASSETS
1.	UNRESTRICTED CASH	$	2,913	$	54,334		$	37,623		$	564,506
2.	RESTRICTED CASH			$	0		$	0		$	0
3.	TOTAL CASH	$	2,913	$	54,334		$	37,623		$	564,506
4.	ACCOUNTS RECEIVABLE (NET)	$	428,572	$	563,239		$	536,016		$	599,968
5.	INVENTORY	$	1,807,835	$	1,434,407		$	1,412,526		$	1,402,954
6.	NOTES RECEIVABLE	$	0	$	0		$	0		$	0
7.	PREPAID EXPENSES	$	538,000	$	1,669,075		$	1,225,335		$	576,529
8.	OTHER (ATTACH LIST)	$	2,114,882	$	211,081		$	203,835		$	202,704
9.	TOTAL CURRENT ASSETS	$	4,892,202	$	3,932,136		$	3,415,335		$	3,346,661
10.	PROPERTY, PLANT & EQUIPMENT	$	359,058	$	2,342,879		$	2,342,879		$	1,345,962
11.	LESS: ACCUMULATED DEPRECIATION / DEPLETION	$	0	$	1,146,213		$	1,171,285		$	1,067,386
12.	NET PROPERTY, PLANT & EQUIPMENT	$	359,058	$	1,196,666		$	1,171,594		$	278,576
13.	DUE FROM INSIDERS	$	0	$	0		$	0		$	0
14.	OTHER ASSETS — NET OF AMORTIZATION (ATTACH LIST)	$	0	$	0		$	0		$	0
15.	OTHER (ATTACH LIST)	$	0	$	7,421,133		$	7,562,840		$	6,655,018
16.	TOTAL ASSETS	$	5,251,260	$	12,549,935		$	12,149,769		$	10,280,255
POSTPETITION LIABILITIES
17.	ACCOUNTS PAYABLE			$	86,113		$	212,527		$	194,208
18.	TAXES PAYABLE			$	70,240		$	68,056		$	90,224
19.	NOTES PAYABLE			$	0		$	0		$	0
20.	PROFESSIONAL FEES			$	0		$	0		$	0
21.	SECURED DEBT			$	0		$	0		$	0
22.	OTHER (ATTACH LIST)			$	1,582,074		$	1,729,985		$	1,234,436
23.	TOTAL POSTPETITION LIABILITIES			$	1,738,427		$	2,010,568		$	1,518,868
PREPETITION LIABILITIES
24.	SECURED DEBT	$	16,684,744	$	0		$	0		$	0
25.	PRIORITY DEBT	$	810,299	$	0		$	0		$	0
26.	UNSECURED DEBT	$	4,675,404	$	6,974,813		$	6,618,679		$	6,319,708
27.	OTHER (ATTACH LIST)			$	0		$	0		$	0
28.	TOTAL PREPETITION LIABILITIES	$	22,170,447	$	6,974,813		$	6,618,679		$	6,319,708
29.	TOTAL LIABILITIES	$	22,170,447	$	8,713,240		$	8,629,247		$	7,838,576
EQUITY
30.	PREPETITION OWNERS’ EQUITY			$	3,848,021		$	3,848,021		$	3,848,021
31.	POSTPETITION CUMULATIVE PROFIT OR (LOSS)			$	(11,326	)	$	(327,499	)	$	(1,406,342	)
32.	DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION)			$	0		$	0		$	0
33.	TOTAL EQUITY	$	0	$	3,836,695		$	3,520,522		$	2,441,679
34.	TOTAL LIABILITIES  & OWNERS’ EQUITY	$	22,170,447	$	12,549,935		$	12,149,769		$	10,280,255

Monthly Operating Report

ACCRUAL BASIS-2

2007

CASE NAME: Kitty Hawk Aircargo, Inc.

CASE NUMBER: 07-44539

INCOME STATEMENT

		MONTH			MONTH			MONTH			QUARTER
		October 2007			November 2007			December 2007			TOTAL
REVENUES
1.	GROSS REVENUES	$	233,545		$	1,141,483		$	1,482,950		$	2,857,978
2.	LESS: RETURNS & DISCOUNTS	$	0		$	0		$	0		$	0
3.	NET REVENUE	$	233,545		$	1,141,483		$	1,482,950		$	2,857,978
COST OF GOODS SOLD
4.	MATERIAL	$	0		$	0		$	0		$	0
5.	DIRECT LABOR	$	0		$	0		$	0		$	0
6.	DIRECT OVERHEAD	$	0		$	0		$	0		$	0
7.	TOTAL COST OF GOODS SOLD	$	0		$	0		$	0		$	0
8.	GROSS PROFIT	$	233,545		$	1,141,483		$	1,482,950		$	2,857,978
OPERATING EXPENSES
9.	OFFICER / INSIDER COMPENSATION	$	16,884		$	34,072		$	31,058		$	82,014
10.	SELLING & MARKETING	$	0		$	0		$	0		$	0
11.	GENERAL & ADMINISTRATIVE	$	62,224		$	182,698		$	359,611		$	604,533
12.	RENT & LEASE	$	554,557		$	802,250		$	530,956		$	1,887,763
13.	OTHER (ATTACH LIST)	$	(402,542	)	$	954,103		$	864,731		$	1,416,292
14.	TOTAL OPERATING EXPENSES	$	231,123		$	1,973,123		$	1,786,356		$	3,990,602
15.	INCOME BEFORE NON-OPERATING INCOME & EXPENSE	$	2,422		$	(831,640	)	$	(303,406	)	$	(1,132,624	)
OTHER INCOME  & EXPENSES
16.	NON-OPERATING INCOME (ATT. LIST)	$	0		$	540,539		$	122,582		$	663,121
17.	NON-OPERATING EXPENSE (ATT. LIST)	$	0		$	0		$	530,250		$	530,250
18.	INTEREST EXPENSE	$	0		$	0		$	0		$	0
19.	DEPRECIATION / DEPLETION	$	13,749		$	25,072		$	362,768		$	401,589
20.	AMORTIZATION	$	0		$	0		$	0		$	0
21.	OTHER (ATTACH LIST)	$	0		$	0		$	0		$	0
22.	NET OTHER INCOME & EXPENSES	$	13,749		$	(515,467	)	$	770,436		$	268,718
REORGANIZATION EXPENSES
23.	PROFESSIONAL FEES	$	0		$	0		$	0		$	0
24.	U.S. TRUSTEE FEES	$	0		$	0		$	5,000		$	5,000
25.	OTHER (ATTACH LIST)	$	0		$	0		$	0		$	0
26.	TOTAL REORGANIZATION EXPENSES	$	0		$	0		$	5,000		$	5,000
27.	INCOME TAX	$	0		$	0		$	0		$	0
28.	NET PROFIT (LOSS)	$	(11,327	)	$	(316,173	)	$	(1,078,842	)	$	(1,406,342	)

Monthly Operating Report

ACCRUAL BASIS-3

2007

CASE NAME: Kitty Hawk Aircargo, Inc.

CASE NUMBER: 07-44539

	MONTH		MONTH			MONTH			QUARTER
	October 2007		November 2007			December 2007			TOTAL
CASH RECEIPTS AND DISBURSEMENTS
1. CASH — BEGINNING OF MONTH	$	2,913	$	54,334		$	37,623		$	2,913
RECEIPTS FROM OPERATIONS
2. CASH SALES	$	0	$	0		$	0		$	0
COLLECTION OF ACCOUNTS RECEIVABLE
3. PREPETITION	$	209,638	$	823,366		$	0		$	1,033,004
4. POSTPETITION	$	0	$	0		$	3,882,001		$	3,882,001
5. TOTAL OPERATING RECEIPTS	$	209,638	$	823,366		$	3,882,001		$	4,915,005
NON-OPERATING RECEIPTS
6. LOANS & ADVANCES (ATTACH LIST)	$	0	$	0		$	0		$	0
7. SALE OF ASSETS	$	0	$	0		$	436,424		$	436,424
8. OTHER (ATTACH LIST)	$	6,169	$	1,309		$	(3,641,597	)	$	(3,634,119	)
9. TOTAL NON-OPERATING RECEIPTS	$	6,169	$	1,309		$	(3,205,173	)	$	(3,197,695	)
10. TOTAL RECEIPTS	$	215,807	$	824,675		$	676,828		$	1,717,310
11. TOTAL CASH AVAILABLE	$	218,720	$	879,009		$	714,451		$	1,720,223
OPERATING DISBURSEMENTS
12. NET PAYROLL	$	0	$	0		$	0		$	0
13. PAYROLL TAXES PAID	$	0	$	0		$	0		$	0
14. SALES, USE & OTHER TAXES PAID	$	0	$	0		$	0		$	0
15. SECURED / RENTAL / LEASES	$	158,566	$	840,078		$	135,870		$	1,134,514
16. UTILITIES	$	0	$	0		$	0		$	0
17. INSURANCE	$	0	$	0		$	0		$	0
18. INVENTORY PURCHASES	$	0	$	0		$	0		$	0
19. VEHICLE EXPENSES	$	0	$	0		$	0		$	0
20. TRAVEL	$	0	$	0		$	0		$	0
21. ENTERTAINMENT	$	0	$	0		$	0		$	0
22. REPAIRS  & MAINTENANCE	$	0	$	0		$	0		$	0
23. SUPPLIES	$	0	$	0		$	0		$	0
24. ADVERTISING	$	0	$	0		$	0		$	0
25. OTHER (ATTACH LIST)	$	5,820	$	1,308		$	14,075		$	21,203
26. TOTAL OPERATING DISBURSEMENTS	$	164,386	$	841,386		$	149,945		$	1,155,717
REORGANIZATION EXPENSES
27. PROFESSIONAL FEES	$	0	$	0		$	0		$	0
28. U.S. TRUSTEE FEES	$	0	$	0		$	0		$	0
29. OTHER (ATTACH LIST)	$	0	$	0		$	0		$	0
30. TOTAL REORGANIZATION EXPENSES	$	0	$	0		$	0		$	0
31. TOTAL DISBURSEMENTS	$	164,386	$	841,386		$	149,945		$	1,155,717
32. NET CASH FLOW	$	51,421	$	(16,711	)	$	526,883		$	561,593
33. CASH — END OF MONTH	$	54,334	$	37,623		$	564,506		$	564,506

Monthly Operating Report

ACCRUAL BASIS-4

2007

CASE NAME: Kitty Hawk Aircargo, Inc.

CASE NUMBER: 07-44539

	SCHEDULE		MONTH		MONTH		MONTH
	AMOUNT		October 2007		November 2007		December 2007
ACCOUNTS RECEIVABLE AGING
1. 0-30			$	132,450	$	57,548	$	74,907
2. 31-60			$	90,860	$	23,746	$	23,794
3. 61-90			$	3,486	$	70,488	$	23,746
4. 91+			$	210,396	$	213,881	$	278,241
5. TOTAL ACCOUNTS RECEIVABLE	$	428,572	$	437,192	$	365,663	$	400,688
6. AMOUNT CONSIDERED UNCOLLECTIBLE	$	0	$	0	$	0	$	0
7. ACCOUNTS RECEIVABLE (NET)	$	428,572	$	437,192	$	365,663	$	400,688

AGING OF POSTPETITION TAXES AND PAYABLES MONTH: December 2007

	0-30			31-60		61-90		91+
	DAYS			DAYS		DAYS		DAYS		TOTAL
TAXES PAYABLE
1. FEDERAL	$	0		$	0	$	0	$	0	$	0
2. STATE	$	0		$	0	$	0	$	0	$	0
3. LOCAL	$	0		$	0	$	0	$	0	$	0
4. OTHER (ATTACH LIST)	$	90,224		$	0	$	0	$	0	$	90,224
5. TOTAL TAXES PAYABLE	$	90,224		$	0	$	0	$	0	$	90,224
6. ACCOUNTS PAYABLE	$	(41,950	)	$	179,890	$	56,268	$	0	$	194,208

STATUS OF POSTPETITION TAXES MONTH: December 2007

	BEGINNING		AMOUNT				ENDING
	TAX		WITHHELD AND/		AMOUNT		TAX
	LIABILITY*		0R ACCRUED		PAID		LIABILITY
FEDERAL
1. WITHHOLDING**	$	0	$	107,029	$	107,029	$	0
2. FICA-EMPLOYEE**	$	0	$	40,662	$	40,662	$	0
3. FICA-EMPLOYER**	$	0	$	40,662	$	40,662	$	0
4. UNEMPLOYMENT	$	0	$	131	$	131	$	0
5. INCOME	$	0	$	0	$	0	$	0
6. OTHER (ATTACH LIST)	$	0	$	14,034	$	14,034	$	0
7. TOTAL FEDERAL TAXES	$	0	$	202,518	$	202,518	$	0
STATE AND LOCAL
8. WITHHOLDING	$	0	$	9,981	$	9,981	$	0
9. SALES	$	0	$	0	$	0	$	0
10. EXCISE	$	0	$	0	$	0	$	0
11. UNEMPLOYMENT	$	0	$	433	$	433	$	0
12. REAL PROPERTY	$	0	$	0	$	0	$	0
13. PERSONAL PROPERTY	$	0	$	0	$	0	$	0
14. OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
15. TOTAL STATE & LOCAL	$	0	$	10,414	$	10,414	$	0
16. TOTAL TAXES	$	0	$	212,932	$	212,932	$	0

*The beginning tax liability should represent the liability from the prior month or, if this is the first operating report, the amount should be zero.

**Attach photocopies of IRS Form 6123 or your FTD coupon and payment receipt to verify payment or deposit.

Monthly Operating Report

ACCRUAL BASIS-5

2007

CASE NAME: Kitty Hawk Aircargo, Inc.

CASE  NUMBER: 07-44539

The  debtor  in  possession  must  complete  the  reconciliation  below  for  each  bank  account, including  all  general,  payroll  and  tax  accounts,  as  well  as  all  savings  and  investment accounts,  money  market  accounts,  certificates  of  deposit,  government obligations, etc. Accounts  with  restricted  funds should be identified  by  placing  an  asterisk next to the account  number.  Attach  additional  sheets  if  necessary.

	MONTH: December 2007
BANK RECONCILIATIONS

	Account #1		Account #2		Account #3		TOTAL
A. BANK:	Capital One		JP Morgan Chase		Capital One
B. ACCOUNT NUMBER:	3620477833		100130152		3620562563
C. PURPOSE (TYPE):	Depository		Operating		Asset Sales
1. BALANCE PER BANK STATEMENT	$	127,772	$	0	$	436,202	$	563,974
2. ADD: TOTAL DEPOSITS NOT CREDITED	$	0	$	0	$	0	$	0
3. SUBTRACT: OUTSTANDING CHECKS	$	0	$	0	$	0	$	0
4. OTHER RECONCILING ITEMS	$	0	$	0	$	182	$	182
5. MONTH END BALANCE PER BOOKS	$	127,772	$	0	$	436,384	$	564,156
6. NUMBER OF LAST CHECK WRITTEN	None		No Checks		No Checks

INVESTMENT ACCOUNTS

	DATE OF PURCHASE	TYPE OF INSTRUMENT	PURCHASE PRICE		CURRENT VALUE
BANK, ACCOUNT NAME  & NUMBER
7. N/A
8.
9.
10.
11. TOTAL INVESTMENTS			$	0	$	0

CASH

12. CURRENCY ON HAND	$	350
13. TOTAL CASH — END OF MONTH	$	564,506

Monthly Operating Report

ACCRUAL BASIS-6

2007

CASE NAME: Kitty Hawk Aircargo, Inc.

CASE  NUMBER: 07-44539

MONTH: December 2007

PAYMENTS  TO  INSIDERS  AND  PROFESSIONALS

OF  THE  TOTAL  DISBURSEMENTS  SHOWN  FOR  THE  MONTH,  LIST  THE  AMOUNT  PAID TO  INSIDERS  (AS  DEFINED  IN  SECTION  101 (31)  (A)-(F)  OF  THE  U.S.  BANKRUPTCY  CODE) AND  TO  PROFESSIONALS.  ALSO,  FOR  PAYMENTS  TO  INSIDERS, IDENTIFY  THE  TYPE  OF COMPENSATION  PAID  (e.g.  SALARY,  BONUS,  COMMISSIONS,  INSURANCE,  HOUSING  ALLOWANCE, TRAVEL,  CAR ALLOWANCE,  ETC.).  ATTACH  ADDITIONAL  SHEETS  IF  NECESSARY.

INSIDERS

NAME	TYPE OF PAYMENT	AMOUNT PAID		TOTAL PAID TO DATE
1. Robbie Barron	Salary, Expense Reports	$	15,385	$	42,383
2. Danny Clifton	Salary, Expense Reports	$	6,750	$	22,418
3. Mark Luman	Salary, Expense Reports	$	8,923	$	21,225
4.
5.
6. TOTAL PAYMENTS  TO INSIDERS		$	31,058	$	86,026

PROFESSIONALS

NAME	DATE OF COURT ORDER AUTHORIZING PAYMENT	AMOUNT APPROVED		AMOUNT PAID		TOTAL PAID TO DATE		TOTAL INCURRED & UNPAID*
1. See Case #07-44536, Kitty Hawk, Inc.
2.
3.
4.
5.
6. TOTAL PAYMENTS  TO PROFESSIONALS		$	0	$	0	$	0	$	0

*INCLUDE  ALL  FEES  INCURRED,  BOTH  APPROVED  AND  UNAPPROVED

POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE PROTECTION  PAYMENTS

NAME OF CREDITOR	SCHEDULED MONTHLY PAYMENTS DUE		AMOUNTS PAID DURING MONTH		TOTAL UNPAID POSTPETITION
1. GECAS	$	738,159	$	214,403	$	1,372,597
2. AirLease International	$	48,910	$	175,365	$	0
3.
4.
5.
6. TOTAL	$	787,069	$	389,768	$	1,372,597

Monthly Operating Report

ACCRUAL BASIS-7

2007

CASE NAME:  Kitty Hawk Aircargo, Inc.

CASE NUMBER: 07-44539

MONTH: November 2007

QUESTIONNAIRE

		YES	NO
1.	HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE THE NORMAL COURSE OF BUSINESS THIS REPORTING PERIOD?	X
2.	HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR IN POSSESSION ACCOUNT?		X
3.	ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES?		X
4.	HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES THIS REPORTING PERIOD?	X
5.	HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE DEBTOR FROM ANY PARTY?		X
6.	ARE ANY POSTPETITION PAYROLL TAXES PAST DUE?		X
7.	ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES PAST DUE?		X
8.	ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE?		X
9.	ARE ANY OTHER POSTPETITION TAXES PAST DUE?		X
10.	ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS DELINQUENT?	X
11.	HAVE ANY PREPETITION TAXES BEEN PAID DURING THE REPORTING PERIOD?		X
12.	ARE ANY WAGE PAYMENTS PAST DUE?		X

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS “YES,” PROVIDE A DETAILED EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY.

1 — Misc equipment sold when locations closed i/a/w de minimis asset sale motion approved by the Court

10 — DIP order in place with Laurus does not allow post-petition payments after 10/29 until Laurus is paid in full; expect payments to resume in 1/08

4 — Payment  made on accrued vacation balances in accordance with first day orders.

INSURANCE

	YES	NO
1. ARE WORKER’S COMPENSATION, GENERAL LIABILITY AND OTHER NECESSARY INSURANCE COVERAGES IN EFFECT?	X
2. ARE ALL PREMIUM PAYMENTS PAID CURRENT?	X
3. PLEASE ITEMIZE POLICIES BELOW.

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS “NO,” OR IF ANY POLICIES HAVE BEEN CANCELLED OR NOT RENEWED DURING THIS REPORTING PERIOD, PROVIDE AN EXPLANATION BELOW. ATTACH ADDITIONAL SHEETS IF NECESSARY.

INSTALLMENT PAYMENTS

TYPE OF POLICY	CARRIER	PERIOD COVERED	PAYMENT AMOUNT & FREQUENCY
See Case #07-44536, Kitty Hawk, Inc.

Footnotes Supplement

ACCRUAL  BASIS

2007

CASE NAME: Kitty Hawk Aircargo, Inc.

CASE  NUMBER: 07-44539

MONTH: November 2007

Accrual Basis Form Number	Line Number	Footnote/Explanation
3	8	All available cash received into each subsidiary cash account was transferred to paydown the Laurus Master Fund Secured Debt at Kitty Hawk, Inc. (Case #07-44536)
3	31	All disbursements (either by wire transfer or check), including payroll, are disbursed out of the Kitty Hawk, Inc. disbursement accounts (Case #07-44536)
4	6	All assessments of uncollectible accounts receivable are done at Kitty Hawk, Inc. All reserves are recorded at Inc. and pushed down to Inc.’s subsidiaries as deemed necessary. (Case #07-44536)
6	Post Pet Leases	GECAS and AirLease are aircraft and engine leases which are protected under Section 1110; Debtor may delay lease payment 60 days from petition date
7		All insurance policies for Kitty Hawk Aircargo, Inc. are carried in the name of Kitty Hawk, Inc. (Case #07-44536)
1	4	Accounts Receivable (Net) includes accrued AR at the end of the reporting period
3	15	Cash receipts collected was automatically transferred to Laurus Master Fund to paydown revolver until paid in full on 12/07; afterwards, cash receipts tranferred directly to Kitty Hawk, Inc. (Case #07-44536)
3	7	All proceeds from the sale of assets in all 5 cases (07-44536, 44537, 44538, 44539, 44540) are deposited into the account maintained at Capital One Bank in the name of Kitty Hawk Aircargo, Inc. Asset Sales Account
4	AR - 7	Total Accounts Receivable does not agree to Accrual Basis — 1, line 4 due to Unapplied Cash ($140,346) and miscellaneous reconciling items ($7,234) at the end of the reporting cycle.

Case Name: Kitty Hawk Aircargo, Inc.

Case Number: 07-44539

Details of Other Items

	December 2007
ACCRUAL BASIS — 1
8. OTHER (ATTACH LIST)	202,704		Reported
AR 401(k)	(834	)
AR Employees	(1,604	)
Fuel intoplane suspense	(36,546	)
Deposits	241,688
	202,704		Detail
	0		Difference
15. OTHER (ATTACH LIST)	6,655,018		Reported
Intercompany receivable	6,655,018
	6,655,018		Detail
	0		Difference
22. OTHER (ATTACH LIST)	1,234,436		Reported
Deferred gain	10,054
Payroll clearing	(3,394	)
General Accrued AP	1,144,856
Accrued Union Dues	(9,686	)
Accrued wages	92,536
Accrued 401(k)	70
Deferred revenue	0
	1,234,436		Detail
	0		Difference
ACCRUAL BASIS — 2
13. OTHER OPERATING EXPENSE	864,731		Reported
Crewmember wages	320,430
Crewmember travel	104,440
Training	0
Flight Operations Admin wages & travel	63,649
Flight Planning Expense	50,357
Aircraft Insurance	75,097
Ground Operating Expense	1,636
Fuel	(70,998	)
Maintenance wages & travel	104,847
Support costs	10,840
Contract labor	(696	)
Parts Related Expense	10,717
Contractual Maintenance agreements	182,646
Allocation to Cargo	0
On demand charter expense	7,366
Non-reorganization Professional Fees	4,400
	864,731		Detail
	0		Difference
16. NON-OPERATING INCOME (ATT. LIST)	122,582		Reported
Interest income	144
Gain on sale of assets	5,994
Insurance claims on damaged aircraft	116,444
	122,582		Detail
	0		Difference
17. NON-OPERATING EXPENSE (ATT. LIST)	530,250		Reported
Write off software development costs	530,250
	530,250		Detail
	0		Difference
ACCRUAL BASIS — 3
8. OTHER (ATTACH LIST)	(3,641,597	)	Reported
Transfer to Inc (#07-44536)	(3,655,632	)
Transfer from Inc (#07-44536)	14,035
	(3,641,597	)	Detail
	0		Difference
25. OTHER (ATTACH LIST)	14,075		Reported
Federal Excise Tax payments	14,035
Bank Fees	40
	14,075		Detail
	0		Difference
ACCRUAL BASIS — 4
Status of Post Petition Taxes	14,034		Reported
Federal Excise Taxes — collected and remitted	14,034
	14,034		Detail
	0		Difference
ACCRUAL BASIS — 4
Aging of Post-petition Taxes	90,224		Reported
Accrued FICA related to accrued wages	8,622
Accrued state excise/use tax	157
Accrued property tax	39,869
Federal Excise Tax	19,408
	68,056		Detail
	22,168		Difference

EX-99.5

Exhibit 99.5

Monthly Operating Report

ACCRUAL BASIS

2007

CASE NAME: KH Ground, Inc.

CASE NUMBER: 07-44540

JUDGE: Russell F. Nelms

UNITED STATES BANKRUPTCY COURT

NORTHERN DISTRICT OF TEXAS

DIVISION 6

MONTHLY OPERATING REPORT

MONTH ENDING:DECEMBER 31, 2007

IN ACCORDANCE WITH TITLE 28, SECTION  1746, OF THE UNITED STATES CODE, I DECLARE UNDER PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY OPERATING REPORT (ACCRUAL BASIS-1 THROUGH ACCRUAL BASIS-7) AND THE ACCOMPANYING ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT AND COMPLETE. DECLARATION OF THE PREPARER (OTHER THAN RESPONSIBLE PARTY): IS BASED ON ALL INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE.

RESPONSIBLE PARTY:
/s/ James R. Kupferschmid	Senior VP and Chief Restructing Officer
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY	TITLE
James R. Kupferschmid	January 24, 2008
PRINTED NAME OF RESPONSIBLE PARTY	DATE
PREPARER:
/s/ Jessica L. Wilson	VP and Chief Financial Officer
ORIGINAL SIGNATURE OF PREPARER	TITLE
Jessica L. Wilson	January 24, 2008
PRINTED NAME OF PREPARER	DATE

Monthly Operating Report

ACCRUAL BASIS-1

2007

CASE NAME: KH Ground, Inc.

CASE  NUMBER: 07-44540

COMPARATIVE BALANCE SHEET

	SCHEDULE		MONTH		MONTH		MONTH
	AMOUNT		October 2007		November 2007		December 2007
ASSETS
1. UNRESTRICTED CASH	$	0	$	0	$	0	$	0
2. RESTRICTED CASH	$	0	$	0	$	0	$	0
3. TOTAL CASH	$	0	$	0	$	0	$	0
4. ACCOUNTS RECEIVABLE (NET)	$	0	$	0	$	0	$	0
5. INVENTORY	$	0	$	0	$	0	$	0
6. NOTES RECEIVABLE	$	0	$	0	$	0	$	0
7. PREPAID EXPENSES	$	0	$	0	$	0	$	0
8. OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
9. TOTAL CURRENT ASSETS	$	0	$	0	$	0	$	0
10. PROPERTY, PLANT & EQUIPMENT	$	0	$	0	$	0	$	0
11. LESS: ACCUMULATED DEPRECIATION / DEPLETION	$	0	$	0	$	0	$	0
12. NET PROPERTY, PLANT & EQUIPMENT	$	0	$	0	$	0	$	0
13. DUE FROM INSIDERS	$	0	$	0	$	0	$	0
14. OTHER ASSETS — NET OF AMORTIZATION (ATTACH LIST)	$	0	$	0	$	0	$	0
15. OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
16. TOTAL ASSETS	$	0	$	0	$	0	$	0
POSTPETITION LIABILITIES
17. ACCOUNTS PAYABLE			$	0	$	0	$	250
18. TAXES PAYABLE			$	0	$	0	$	0
19. NOTES PAYABLE			$	0	$	0	$	0
20. PROFESSIONAL FEES			$	0	$	0	$	0
21. SECURED DEBT			$	0	$	0	$	0
22. OTHER (ATTACH LIST)			$	0	$	0	$	0
23. TOTAL POSTPETITION LIABILITIES			$	0	$	0	$	250
PREPETITION LIABILITIES
24. SECURED DEBT	$	16,684,744	$	0	$	0	$	0
25. PRIORITY DEBT	$	0	$	0	$	0	$	0
26. UNSECURED DEBT	$	0	$	0	$	0	$	0
27. OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
28. TOTAL PREPETITION LIABILITIES	$	16,684,744	$	0	$	0	$	0
29. TOTAL LIABILITIES	$	16,684,744	$	0	$	0	$	250
EQUITY
30. PREPETITION OWNERS’ EQUITY	0		$	0	$	0	$	0
31. POSTPETITION CUMULATIVE PROFIT OR (LOSS)			$	0	$	0	$	(250	)
32. DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION)			$	0	$	0	$	0
33. TOTAL EQUITY	$	0	$	0	$	0	$	(250	)
34. TOTAL LIABILITIES  & OWNERS’ EQUITY	$	16,684,744	$	0	$	0	$	0

Monthly Operating Report

ACCRUAL BASIS-2

2007

CASE NAME: KH Ground, Inc.

CASE NUMBER: 07-44540

INCOME STATEMENT

	MONTH		MONTH		MONTH			QUARTER
	October 2007		November 2007		December 2007			TOTAL
REVENUES
1. GROSS REVENUES	$	0	$	0	$	0		$	0
2. LESS: RETURNS & DISCOUNTS	$	0	$	0	$	0		$	0
3. NET REVENUE	$	0	$	0	$	0		$	0
COST OF GOODS SOLD
4. MATERIAL	$	0	$	0	$	0		$	0
5. DIRECT LABOR	$	0	$	0	$	0		$	0
6. DIRECT OVERHEAD	$	0	$	0	$	0		$	0
7. TOTAL COST OF GOODS SOLD	$	0	$	0	$	0		$	0
8. GROSS PROFIT	$	0	$	0	$	0		$	0
OPERATING EXPENSES
9.   OFFICER / INSIDER COMPENSATION	$	0	$	0	$	0		$	0
10. SELLING & MARKETING	$	0	$	0	$	0		$	0
11. GENERAL & ADMINISTRATIVE	$	0	$	0	$	0		$	0
12. RENT & LEASE	$	0	$	0	$	0		$	0
13. OTHER (ATTACH LIST)	$	0	$	0	$	0		$	0
14. TOTAL OPERATING EXPENSES	$	0	$	0	$	0		$	0
15. INCOME BEFORE NON-OPERATING INCOME & EXPENSE	$	0	$	0	$	0		$	$0
OTHER INCOME & EXPENSES
16. NON-OPERATING INCOME (ATT. LIST)	$	0	$	0	$	0		$	0
17. NON-OPERATING EXPENSE (ATT. LIST)	$	0	$	0	$	0		$	0
18. INTEREST EXPENSE	$	0	$	0	$	0		$	0
19. DEPRECIATION / DEPLETION	$	0	$	0	$	0		$	0
20. AMORTIZATION	$	0	$	0	$	0		$	0
21. OTHER (ATTACH LIST)	$	0	$	0	$	0		$	0
22. NET OTHER INCOME & EXPENSES	$	0	$	0	$	0		$	0
REORGANIZATION EXPENSES
23. PROFESSIONAL FEES	$	0	$	0	$	0		$	0
24. U.S. TRUSTEE FEES	$	0	$	0	$	250		$	250
25. OTHER (ATTACH LIST)	$	0	$	0	$	0		$	0
26. TOTAL REORGANIZATION EXPENSES	$	0	$	0	$	250		$	250
27. INCOME TAX	$	0	$	0	$	0
28. NET PROFIT (LOSS)	$	0	$	0	$	(250	)	$	(250	)

Monthly Operating Report

ACCRUAL BASIS-3

2007

CASE NAME: KH Ground, Inc.

CASE  NUMBER: 07-44540

	MONTH		MONTH		MONTH		QUARTER
	October 2007		November 2007		December 2007		TOTAL
CASH RECEIPTS AND DISBURSEMENTS
1. CASH — BEGINNING OF MONTH	$	0	$	0	$	0	$	0
RECEIPTS FROM OPERATIONS
2. CASH SALES	$	0	$	0	$	0	$	0
COLLECTION OF ACCOUNTS RECEIVABLE
3. PREPETITION	$	0	$	0	$	0	$	0
4. POSTPETITION	$	0	$	0	$	0	$	0
5. TOTAL OPERATING RECEIPTS	$	0	$	0	$	0	$	0
NON-OPERATING RECEIPTS
6. LOANS & ADVANCES (ATTACH LIST)	$	0	$	0	$	0	$	0
7. SALE OF ASSETS	$	0	$	0	$	0	$	0
8. OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
9. TOTAL NON-OPERATING RECEIPTS	$	0	$	0	$	0	$	0
10. TOTAL RECEIPTS	$	0	$	0	$	0	$	0
11. TOTAL CASH AVAILABLE	$	0	$	0	$	0	$	0
OPERATING DISBURSEMENTS
12. NET PAYROLL	$	0	$	0	$	0	$	0
13. PAYROLL TAXES PAID	$	0	$	0	$	0	$	0
14. SALES, USE & OTHER TAXES PAID	$	0	$	0	$	0	$	0
15. SECURED / RENTAL / LEASES	$	0	$	0	$	0	$	0
16. UTILITIES	$	0	$	0	$	0	$	0
17. INSURANCE	$	0	$	0	$	0	$	0
18. INVENTORY PURCHASES	$	0	$	0	$	0	$	0
19. VEHICLE EXPENSES	$	0	$	0	$	0	$	0
20. TRAVEL	$	0	$	0	$	0	$	0
21. ENTERTAINMENT	$	0	$	0	$	0	$	0
22. REPAIRS & MAINTENANCE	$	0	$	0	$	0	$	0
23. SUPPLIES	$	0	$	0	$	0	$	0
24. ADVERTISING	$	0	$	0	$	0	$	0
25. OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
26. TOTAL OPERATING DISBURSEMENTS	$	0	$	0	$	0	$	0
REORGANIZATION EXPENSES
27. PROFESSIONAL FEES	$	0	$	0	$	0	$	0
28. U.S. TRUSTEE FEES	$	0	$	0	$	0	$	0
29. OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
30. TOTAL REORGANIZATION EXPENSES	$	0	$	0	$	0	$	0
31. TOTAL DISBURSEMENTS	$	0	$	0	$	0	$	0
32. NET CASH FLOW	$	0	$	0	$	0	$	0
33. CASH — END OF MONTH	$	0	$	0	$	0	$	0

Monthly Operating Report

ACCRUAL BASIS-4

2007

CASE NAME: KH Ground, Inc.

CASE  NUMBER: 07-44540

	SCHEDULE		MONTH		MONTH		MONTH
	AMOUNT		October 2007		November 2007		December 2007
ACCOUNTS RECEIVABLE AGING
1. 0-30	$	0	$	0	$	0	$	0
2. 31-60	$	0	$	0	$	0	$	0
3. 61-90	$	0	$	0	$	0	$	0
4. 91+	$	0	$	0	$	0	$	0
5. TOTAL ACCOUNTS RECEIVABLE	$	0	$	0	$	0	$	0
6. AMOUNT CONSIDERED UNCOLLECTIBLE	$	0	$	0	$	0
7. ACCOUNTS RECEIVABLE (NET)	$	0	$	0	$	0	$	0

AGING OF POSTPETITION TAXES AND PAYABLES MONTH: December 2007

	0-30		31-60		61-90		91+
	DAYS		DAYS		DAYS		DAYS		TOTAL
TAXES PAYABLE
1. FEDERAL	$	0	$	0	$	0	$	0	$	0
2. STATE	$	0	$	0	$	0	$	0	$	0
3. LOCAL	$	0	$	0	$	0	$	0	$	0
4. OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0	$	0
5. TOTAL TAXES PAYABLE	$	0	$	0	$	0	$	0	$	0
6. ACCOUNTS PAYABLE	$	250	$	0	$	0	$	0	$	250

STATUS OF POSTPETITION TAXES MONTH: December 2007

	BEGINNING		AMOUNT				ENDING
	TAX		WITHHELD AND/		AMOUNT		TAX
	LIABILITY*		0R ACCRUED		PAID		LIABILITY
FEDERAL
1. WITHHOLDING**	$	0	$	0	$	0	$	0
2. FICA-EMPLOYEE**	$	0	$	0	$	0	$	0
3. FICA-EMPLOYER**	$	0	$	0	$	0	$	0
4. UNEMPLOYMENT	$	0	$	0	$	0	$	0
5. INCOME	$	0	$	0	$	0	$	0
6. OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
7. TOTAL FEDERAL TAXES	$	0	$	0	$	0	$	0
STATE AND LOCAL
8. WITHHOLDING	$	0	$	0	$	0	$	0
9. SALES	$	0	$	0	$	0	$	0
10. EXCISE	$	0	$	0	$	0	$	0
11. UNEMPLOYMENT	$	0	$	0	$	0	$	0
12. REAL PROPERTY	$	0	$	0	$	0	$	0
13. PERSONAL PROPERTY	$	0	$	0	$	0	$	0
14. OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
15. TOTAL STATE & LOCAL	$	0	$	0	$	0	$	0
16. TOTAL TAXES	$	0	$	0	$	0	$	0

*The beginning tax liability should represent the liability from the prior month or, if this is the first operating report, the amount should be zero.

**Attach photocopies of IRS Form 6123 or your FTD coupon and payment receipt to verify payment or deposit.

Monthly Operating Report

ACCRUAL BASIS-5

2007

CASE NAME: KH Ground, Inc.

CASE  NUMBER: 07-44540

The  debtor  in  possession  must  complete  the  reconciliation  below  for  each  bank  account, including  all  general,  payroll  and  tax  accounts,  as  well  as  all  savings  and  investment accounts,  money  market  accounts,  certificates  of  deposit,  government obligations, etc. Accounts  with  restricted  funds should be identified  by  placing  an  asterisk next to the account  number.  Attach  additional  sheets  if  necessary.

	MONTH: December 2007
BANK RECONCILIATIONS

	Account #1		Account #2		Account #3		TOTAL
A. BANK:	No Accounts
B. ACCOUNT NUMBER:
C. PURPOSE (TYPE):
1. BALANCE PER BANK STATEMENT
2. ADD: TOTAL DEPOSITS NOT CREDITED
3. SUBTRACT: OUTSTANDING CHECKS
4. OTHER RECONCILING ITEMS
5. MONTH END BALANCE PER BOOKS	$	0	$	0	$	0	$	0
6. NUMBER OF LAST CHECK WRITTEN

INVESTMENT ACCOUNTS

	DATE OF PURCHASE	TYPE OF INSTRUMENT	PURCHASE PRICE		CURRENT VALUE
BANK, ACCOUNT NAME  & NUMBER
7.
8.
9.
10.
11. TOTAL INVESTMENTS			$	0	$	0

CASH

12. CURRENCY ON HAND	$	0
13. TOTAL CASH — END OF MONTH	$	0

Monthly Operating Report

ACCRUAL BASIS-6

2007

CASE NAME: KH Ground, Inc.

CASE  NUMBER: 07-44540

MONTH: December 2007

PAYMENTS  TO  INSIDERS  AND  PROFESSIONALS

OF  THE  TOTAL  DISBURSEMENTS  SHOWN  FOR  THE  MONTH,  LIST  THE  AMOUNT  PAID TO  INSIDERS  (AS  DEFINED  IN  SECTION  101 (31)  (A)-(F)  OF  THE  U.S.  BANKRUPTCY  CODE) AND  TO  PROFESSIONALS.  ALSO,  FOR  PAYMENTS  TO  INSIDERS, IDENTIFY  THE  TYPE  OF COMPENSATION  PAID  (e.g.  SALARY,  BONUS,  COMMISSIONS,  INSURANCE,  HOUSING  ALLOWANCE, TRAVEL,  CAR ALLOWANCE,  ETC.).  ATTACH  ADDITIONAL  SHEETS  IF  NECESSARY.

INSIDERS

NAME	TYPE OF PAYMENT	AMOUNT PAID		TOTAL PAID TO DATE
1. No insiders
2.
3.
4.
5.
6. TOTAL PAYMENTS  TO INSIDERS		$	0	$	0

PROFESSIONALS

NAME	DATE OF COURT ORDER AUTHORIZING PAYMENT	AMOUNT APPROVED		AMOUNT PAID		TOTAL PAID TO DATE		TOTAL INCURRED & UNPAID*
1. See Case #07-44536, Kitty Hawk, Inc.
2.
3.
4.
5.
6. TOTAL PAYMENTS  TO PROFESSIONALS		$	0	$	0	$	0	$	0

*INCLUDE  ALL  FEES  INCURRED,  BOTH  APPROVED  AND  UNAPPROVED

POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE PROTECTION  PAYMENTS

NAME OF CREDITOR	SCHEDULED MONTHLY PAYMENTS DUE		AMOUNTS PAID DURING MONTH		TOTAL UNPAID POSTPETITION
1. See Case #07-44536, Kitty Hawk, Inc.
2.
3.
4.
5.
6. TOTAL	$	0	$	0	$	0

Monthly Operating Report

ACCRUAL  BASIS-7

2007

CASE NAME: KH Ground, Inc.

CASE NUMBER: 07-44540

MONTH: December 2007

QUESTIONNAIRE

		YES	NO
1.	HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE THE NORMAL COURSE OF BUSINESS THIS REPORTING PERIOD?		X
2.	HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR IN POSSESSION ACCOUNT?		X
3.	ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES?		X
4.	HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES THIS REPORTING PERIOD?		X
5.	HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE DEBTOR FROM ANY PARTY?		X
6.	ARE ANY POSTPETITION PAYROLL TAXES PAST DUE?		X
7.	ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES PAST DUE?		X
8.	ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE?		X
9.	ARE ANY OTHER POSTPETITION TAXES PAST DUE?		X
10.	ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS DELINQUENT?		X
11.	HAVE ANY PREPETITION TAXES BEEN PAID DURING THE REPORTING PERIOD?		X
12.	ARE ANY WAGE PAYMENTS PAST DUE?		X

IF  THE  ANSWER  TO  ANY  OF  THE  ABOVE  QUESTIONS  IS  “YES,”  PROVIDE  A  DETAILED EXPLANATION  OF  EACH  ITEM.  ATTACH  ADDITIONAL  SHEETS  IF  NECESSARY.

INSURANCE

		YES	NO
1.	ARE WORKER’S COMPENSATION, GENERAL LIABILITY AND OTHER NECESSARY INSURANCE COVERAGES IN EFFECT?		X
2.	ARE ALL PREMIUM PAYMENTS PAID CURRENT?		X
3.	PLEASE ITEMIZE POLICIES BELOW.

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS “NO,” OR IF ANY POLICIES HAVE BEEN CANCELLED OR NOT RENEWED DURING THIS REPORTING PERIOD, PROVIDE AN  EXPLANATION BELOW. ATTACH ADDITIONAL SHEETS IF NECESSARY.

This is a non-operating entity with no assets or employees and therefore has no insurance policies

INSTALLMENT PAYMENTS

TYPE OF POLICY	CARRIER	PERIOD COVERED	PAYMENT AMOUNT & FREQUENCY
No insurance due to being a non-operating entity with no assets or employees

Footnotes Supplement

ACCRUAL  BASIS

2007

CASE NAME: KH Ground, Inc.

CASE  NUMBER: 07-44540

MONTH: December 2007

Accrual Basis Form Number	Line Number	Footnote/Explanation
General		This is a non-operating entity.