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):  February 21, 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) 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 February 21, 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 January 31, 2008 (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 January 31, 2008
Exhibit 99.2	Monthly Financial Report of Kitty Hawk Ground, Inc. for Month Ending January 31, 2008
Exhibit 99.3	Monthly Financial Report of Kitty Hawk Cargo, Inc. for Month Ending January 31, 2008
Exhibit 99.4	Monthly Financial Report of Kitty Hawk Aircargo, Inc. for Month Ending January 31, 2008
Exhibit 99.5	Monthly Financial Report of KH Ground, Inc. for Month Ending January 31, 2008

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: February 26, 2008	By:	/s/ James R. Kupferschmid
	Name:		James R. Kupferschmid
	Title:		Senior Vice President

4

EX-99.1

Exhibit 99.1

			Monthly Operating Report
CASE NAME:		Kitty Hawk, Inc.	ACCRUAL BASIS
			2008
CASE NUMBER:		07-44536
JUDGE:	Russell F. Nelms

UNITED STATES BANKRUPTCY COURT

NORTHERN DISTRICT OF TEXAS

DIVISION 6

MONTHLY OPERATING REPORT

MONTH ENDING:  JANUARY 31, 2008

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	February 21, 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	February 21, 2008
PRINTED NAME OF PREPARER	DATE

	Monthly Operating Report
CASE NAME:Kitty Hawk, Inc.	ACCRUAL BASIS-1
	2008
CASE NUMBER:07-44536

COMPARATIVE BALANCE SHEET

		SCHEDULE		MONTH
		AMOUNT		January 2008			MONTH		MONTH
ASSETS
1.	UNRESTRICTED CASH	$	0	$	2,509,077
2.	RESTRICTED CASH	$	2,869,929	$	1,935,883
3.	TOTAL CASH	$	2,869,929	$	4,444,960		$	0	$	0
4.	ACCOUNTS RECEIVABLE (NET)			$	(936,674	)
5.	INVENTORY			$	0		$	0	$	0
6.	NOTES RECEIVABLE			$	0		$	0	$	0
7.	PREPAID EXPENSES			$	395,855
8.	OTHER (ATTACH LIST)	$	15,953	$	33,385,941
9.	TOTAL CURRENT ASSETS	$	2,885,882	$	37,290,082		$	0	$	0
10.	PROPERTY, PLANT & EQUIPMENT	$	1,425,325	$	3,362,423
11.	LESS: ACCUMULATED DEPRECIATION / DEPLETION	$	0	$	1,876,033
12.	NET PROPERTY, PLANT & EQUIPMENT	$	1,425,325	$	1,486,390		$	0	$	0
13.	DUE FROM INSIDERS	$	0	$	0		$	0
14.	OTHER ASSETS - NET OF AMORTIZATION (ATTACH LIST)	$	0	$	3,486,848
15.	OTHER (ATTACH LIST)	$	1,109,030	$	0		$	0	$	0
16.	TOTAL ASSETS	$	5,420,237	$	42,263,320		$	0	$	0
POSTPETITION LIABILITIES
17.	ACCOUNTS PAYABLE			$	(2,900	)
18.	TAXES PAYABLE			$	0		$	0	$	0
19.	NOTES PAYABLE			$	0		$	0	$	0
20.	PROFESSIONAL FEES			$	944,833
21.	SECURED DEBT			$	0		$	0	$	0
22.	OTHER (ATTACH LIST)			$	263,556
23.	TOTAL POSTPETITION LIABILITIES			$	1,205,489		$	0	$	0
PREPETITION LIABILITIES
24.	SECURED DEBT	$	15,602,760	$	(61,183	)
25.	PRIORITY DEBT	$	56,297	$	0		$	0	$	0
26.	UNSECURED DEBT	$	1,010,347	$	699,306
27.	OTHER (ATTACH LIST)			$	0		$	0	$	0
28.	TOTAL PREPETITION LIABILITIES	$	16,669,404	$	638,123		$	0	$	0
29.	TOTAL LIABILITIES	$	16,669,404	$	1,843,612		$	0	$	0
EQUITY
30.	PREPETITION OWNERS’ EQUITY			$	41,090,061
31.	POSTPETITION CUMULATIVE PROFIT OR (LOSS)			$	(670,353)
32.	DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION)			$	0		$	0
33.	TOTAL EQUITY	$	0	$	40,419,708		$	0	$	0
34.	TOTAL LIABILITIES & OWNERS’ EQUITY	$	16,669,404	$	42,263,320		$	0	$	0

	Monthly Operating Report
CASE NAME:Kitty Hawk, Inc.	ACCRUAL BASIS-2
	2008
CASE NUMBER:07-44536

INCOME STATEMENT

		MONTH			MONTH		MONTH		QUARTER
		January 2008			0		0		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	$	140,083						$	140,083
10.	SELLING & MARKETING	$	0		$	0	$	0	$	0
11.	GENERAL & ADMINISTRATIVE	$	265,188						$	265,188
12.	RENT & LEASE	$	38,735						$	38,735
13.	OTHER (ATTACH LIST)	$	(555,510	)					$	(555,510	)
14.	TOTAL OPERATING EXPENSES	$	(111,504	)	$	0	$	0	$	(111,504	)
15.	INCOME BEFORE NON-OPERATING INCOME & EXPENSE	$	111,504		$	0	$	0	$	111,504
OTHER INCOME & EXPENSES
16.	NON-OPERATING INCOME (ATT. LIST)	$	12,847						$	12,847
17.	NON-OPERATING EXPENSE (ATT. LIST)	$	0						$	0
18.	INTEREST EXPENSE	$	1,603						$	1,603
19.	DEPRECIATION / DEPLETION	$	23,783						$	23,783
20.	AMORTIZATION	$	0						$	0
21.	OTHER (ATTACH LIST)	$	0		$	0	$	0	$	0
22.	NET OTHER INCOME & EXPENSES	$	12,539		$	0	$	0	$	12,539
REORGANIZATION EXPENSES
23.	PROFESSIONAL FEES	$	207,689						$	207,689
24.	U.S. TRUSTEE FEES	$	0		$	0			$	0
25.	OTHER (ATTACH LIST)	$	0		$	0	$	0	$	0
26.	TOTAL REORGANIZATION EXPENSES	$	207,689		$	0	$	0	$	207,689
27.	INCOME TAX	$	0		$	0	$	0	$	0
28.	NET PROFIT (LOSS)	$	(108,724	)	$	0	$	0	$	(108,724	)

	Monthly Operating Report
CASE NAME:Kitty Hawk, Inc.	ACCRUAL BASIS-3
	2008
CASE NUMBER:07-44536

		MONTH		MONTH		MONTH		QUARTER
		January 2008		0		0		TOTAL
CASH RECEIPTS AND DISBURSEMENTS
1.	CASH - BEGINNING OF MONTH	$	1,657,197					$	1,657,197
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
7.	SALE OF ASSETS	$	0	$	0	$	0	$	0
8.	OTHER (ATTACH LIST)	$	2,691,682					$	2,691,682
9.	TOTAL NON-OPERATING RECEIPTS	$	2,691,682	$	0	$	0	$	2,691,682
10.	TOTAL RECEIPTS	$	2,691,682	$	0	$	0	$	2,691,682
11.	TOTAL CASH AVAILABLE	$	4,348,879	$	0	$	0	$	4,348,879
OPERATING DISBURSEMENTS
12.	NET PAYROLL	$	263,883					$	263,883
13.	PAYROLL TAXES PAID	$	122,432					$	122,432
14.	SALES, USE & OTHER TAXES PAID	$	0	$	0	$	0	$	0
15.	SECURED / RENTAL / LEASES	$	26,477					$	26,477
16.	UTILITIES	$	28,689					$	28,689
17.	INSURANCE	$	165,616					$	165,616
18.	INVENTORY PURCHASES	$	2,319	$	0	$	0	$	2,319
19.	VEHICLE EXPENSES	$	0	$	0	$	0	$	0
20.	TRAVEL	$	0					$	0
21.	ENTERTAINMENT	$	0	$	0	$	0	$	0
22.	REPAIRS & MAINTENANCE	$	106,059					$	106,059
23.	SUPPLIES	$	0	$	0	$	0	$	0
24.	ADVERTISING	$	0	$	0	$	0	$	0
25.	OTHER (ATTACH LIST)	$	1,089,077					$	1,089,077
26.	TOTAL OPERATING DISBURSEMENTS	$	1,804,552	$	0	$	0	$	1,804,552
REORGANIZATION EXPENSES
27.	PROFESSIONAL FEES	$	0	$	0	$	0	$	0
28.	U.S. TRUSTEE FEES	$	35,250	$	0	$	0	$	35,250
29.	OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
30.	TOTAL REORGANIZATION EXPENSES	$	35,250	$	0	$	0	$	35,250
31.	TOTAL DISBURSEMENTS	$	1,839,802	$	0	$	0	$	1,839,802
32.	NET CASH FLOW	$	851,880	$	0	$	0	$	851,880
33.	CASH - END OF MONTH	$	2,509,077	$	0	$	0	$	2,509,077

	Monthly Operating Report
CASE NAME:Kitty Hawk, Inc.	ACCRUAL BASIS-4
	2008
CASE NUMBER:07-44536

		SCHEDULE			MONTH
		AMOUNT			January 2008			MONTH		MONTH
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	$	936,674
7.	ACCOUNTS RECEIVABLE (NET)	$		0	$	(936,674	)	$	0	$	0

AGING OF POSTPETITION TAXES AND PAYABLES MONTH: January 2008

		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	$	(21,073	)	$	6,556	$	6,513	$	5,104	$	(2,900	)

STATUS OF POSTPETITION TAXES MONTH:  January 2008

		BEGINNING TAX LIABILITY*		AMOUNT WITHHELD AND/ OR ACCRUED		AMOUNT PAID		ENDING TAX LIABILITY
FEDERAL
1.	WITHHOLDING**	$	0	$	30,641	$	30,641	$	0
2.	FICA-EMPLOYEE**	$	0	$	15,541	$	15,541	$	0
3.	FICA-EMPLOYER**	$	0	$	14,949	$	14,949	$	0
4.	UNEMPLOYMENT	$	0	$	891	$	891	$	0
5.	INCOME	$	0	$	0	$	0	$	0
6.	OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
7.	TOTAL FEDERAL TAXES	$	0	$	62,022	$	62,022	$	0
STATE AND LOCAL
8.	WITHHOLDING	$	0	$	1,261	$	1,261	$	0
9.	SALES	$	0	$	0	$	0	$	0
10.	EXCISE	$	0	$	0	$	0	$	0
11.	UNEMPLOYMENT	$	0	$	4,709	$	4,709	$	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	$	5,970	$	5,970	$	0
16.	TOTAL TAXES	$	0	$	67,992	$	67,992	$	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
CASE NAME:Kitty Hawk, Inc.	ACCRUAL BASIS-5
	2008
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: January 2008

		Account #1		Account #2			Account #3			TOTAL
BANK RECONCILIATIONS
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	$	155,603	$	0		$	0		$	155,603
2.	ADD: TOTAL DEPOSITS NOT CREDITED	$	0	$	0		$	0		$	0
3.	SUBTRACT: OUTSTANDING CHECKS	$	0	$	401,554		$	31,263		$	432,817
4.	OTHER RECONCILING ITEMS	$	56,612	$	0		$	0		$	56,612
5.	MONTH END BALANCE PER BOOKS	$	212,215	$	(401,554	)	$	(31,263	)	$	(220,602	)
6.	NUMBER OF LAST CHECK WRITTEN	No checks		109594			067009/210601

INVESTMENT ACCOUNTS

		DATE OF	TYPE OF	PURCHASE		CURRENT
		PURCHASE	INSTRUMENT	PRICE		VALUE
BANK, ACCOUNT NAME & NUMBER
7.	JP Morgan Chase - Overnight Sweep -	1/31/2008	money market	$	2,729,479	$	2,729,479
8.
9.
10.
11.	TOTAL INVESTMENTS			$	2,729,479	$	2,729,479

CASH
12.	CURRENCY ON HAND	$	200
13.	TOTAL CASH - END OF MONTH	$	2,509,077

	Monthly Operating Report
CASE NAME:Kitty Hawk, Inc.	ACCRUAL BASIS-6
	2008
CASE NUMBER:07-44536

	MONTH:	January 2008
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	$	33,333	$	83,376
2.	Jessica L. Wilson	Salary, Expense Reports	$	18,750	$	50,001
3.	Brad Eagelston	Salary, Expense Reports	$	12,917	$	51,668
4.	David Rescino	Salary, Expense Reports	$	33,333	$	83,401
5.	Steven Markhoff	Salary, Expense Reports	$	0	$	18,333
6.	Mel Keating	Executive Committee Fee, Exp Reports	$	41,750	$	138,652
7.	TOTAL PAYMENTS TO INSIDERS		$	140,083	$	425,431

PROFESSIONALS

		DATE OF COURT							TOTAL
		ORDER AUTHORIZING	AMOUNT		AMOUNT		TOTAL PAID		INCURRED
NAME		PAYMENT	APPROVED		PAID		TO DATE		& UNPAID *
1.	Andrews Kurth LLP								$	700,433
2.	Otterbourg, Steindler, Houston & Rosen, P.C.								$	197,983
3.	Munsch Hardt Kopf & Harr, P.C.								$	46,417
4.
5.
6.	TOTAL PAYMENTS TO PROFESSIONALS		$	0	$	0	$	0	$	944,833

* 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, paid in full 12/07	Revolver				$	0
2.	Cananwill	$	12,020	$	24,041	$	0
3.	Citicorp Vendor Finance	$	6,005	$	0	$	24,020
4.	DFW Airport - Facility rent, prepaid 1/08 in 12/07	$	37,295	$	0	$	0
5.
6.	TOTAL	$	55,320	$	24,041	$	24,020

			Monthly Operating Report
CASE NAME:	Kitty Hawk, Inc.		ACCRUAL BASIS-7
			2008
CASE NUMBER:		07-44536

	MONTH:	January 2008
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 insurance liabilities in accordance with first day orders.

#10 - due to operation shut down, DIP order did not allow payment of expenditures between 10/15 and 10/29 until DIP lender paid in full; payments on post petition liabilties have resumed during 1/08 and should be brought current during 2/08

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.

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
Fidiciary 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
CASE NAME:	Kitty Hawk, Inc.		ACCRUAL BASIS
			2008
CASE NUMBER:		07-44536

MONTH:   January 2008

Accrual BasisForm Number	LineNumber	Footnote/Explanation
3	8	All available cash received into each subsidiary cash account is transferred to Kitty Hawk, Inc.
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 Fees	The fees noted on this schedule are initial estimates and are subject to change 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
1	17	Credit balance for Accounts Payable is caused by prepaying 2/08 health insurance premiums in 1/08 in the amount of $53,168.

Case Name:	Kitty Hawk, Inc.
Case Number:	07-44536
Details of Other Items

	January 2008
ACCRUAL BASIS - 1
8. OTHER (ATTACH LIST)	33,385,941		Reported
Flex Spending deposit	17,283
A/R - 401(k) Loan	(228	)
A/R - Travel Advance	15,720
Deposits	54,868
Professional Fees Retainer	457,365
Intercompany Receivables	32,840,933
	33,385,941		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)	263,556		Reported
A/P Clearing	(3,953	)
General Accrued AP	277,823
Accrued Health Savings Plan	(17,764	)
AFLAC Deductions	(12	)
Accrued 401(k)	7,462
	263,556		Detail
	0		Difference
ACCRUAL BASIS - 2
13. OTHER (ATTACH LIST)	(555,510	)	Reported
G&A allocation to subsidiaries	555,510
	555,510		Detail
	(1,111,020	)	Difference
16. NON-OPERATING INCOME (ATT. LIST)	12,847		Reported
Interest Income	11,292
Gain on Sale of assets	1,555
	12,847		Detail
	0		Difference
ACCRUAL BASIS - 3
8. OTHER (ATTACH LIST)	2,691,682		Reported
Transfers in from Kitty Hawk Cargo (Case 07-44538)	841,242
Transfers in from Kitty Hawk Ground (Case 07-44537)	1,150,790
Transfers in from Kitty Hawk Aircargo (Case 07-44539)	298,306
Transfers from Asset Sales Account (Case 07-44539)	405,067
Transfers to Asset Sales Account (Case 07-44539)	(75,065	)
Misc Refunds	66,976
Interest income	4,366
	2,691,682		Detail
	0		Difference
25. OTHER (ATTACH LIST)	1,089,077		Reported
401(k)	15,562
Aircraft landing and parking	29,912
Bank fees	3,053
BOD Fees	32,250
Contract labor	88,047
Communications	29,948
Employee expense reports	1,029
Executive committee fees	23,000
Flight crew expense	37,172
Freight handling	427,409
Fuel	7,223
Payroll processing fees	10,940
Non-reorganization professional fees	11,091
Security	2,725
Shipping	6,680
Trucking	333,116
Misc	14,422
Transfer to Kitty Hawk Aircargo (Case 07-44539)	15,498
	1,089,077		Detail
	0		Difference

EX-99.2

Exhibit 99.2

Monthly Operating Report

CASE NAME:		Kitty Hawk Ground, Inc.
			ACCRUAL BASIS
CASE NUMBER:		07-44537	2008
JUDGE:	Russell F. Nelms

UNITED STATES BANKRUPTCY COURT

NORTHERN DISTRICT OF TEXAS

DIVISION 6

MONTHLY OPERATING REPORT

MONTH ENDING: January 31, 2008

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	February 21, 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	February 21, 2008
PRINTED NAME OF PREPARER	DATE

Monthly Operating Report

CASE NAME:	Kitty Hawk Ground, Inc.	ACCRUAL BASIS-1
		2008
CASE NUMBER:	07-44537

COMPARATIVE BALANCE SHEET

		SCHEDULE		MONTH
		AMOUNT		January 2008			MONTH		MONTH
ASSETS
1.	UNRESTRICTED CASH	$	106,914	$	123,003
2.	RESTRICTED CASH			$	0		$	0	$	0
3.	TOTAL CASH	$	106,914	$	123,003		$	0	$	0
4.	ACCOUNTS RECEIVABLE (NET)	$	7,763,152	$	1,192,901
5.	INVENTORY			$	0		$	0	$	0
6.	NOTES RECEIVABLE			$	0		$	0	$	0
7.	PREPAID EXPENSES			$	854,169
8.	OTHER (ATTACH LIST)	$	767,230	$	220,181
9.	TOTAL CURRENT ASSETS	$	8,637,296	$	2,390,254		$	0	$	0
10.	PROPERTY, PLANT & EQUIPMENT	$	1,146,152	$	2,291,849
11.	LESS: ACCUMULATED DEPRECIATION / DEPLETION	$	0	$	914,056
12.	NET PROPERTY, PLANT & EQUIPMENT	$	1,146,152	$	1,377,793		$	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)	$	603,884	$	0		$	0	$	0
16.	TOTAL ASSETS	$	10,387,332	$	3,768,047		$	0	$	0
POSTPETITION LIABILITIES
17.	ACCOUNTS PAYABLE			$	780,571
18.	TAXES PAYABLE			$	27,895
19.	NOTES PAYABLE			$	0		$	0	$	0
20.	PROFESSIONAL FEES			$	0		$	0	$	0
21.	SECURED DEBT			$	0		$	0	$	0
22.	OTHER (ATTACH LIST)			$	18,082,012
23.	TOTAL POSTPETITION LIABILITIES			$	18,890,478		$	0	$	0
PREPETITION LIABILITIES
24.	SECURED DEBT	$	17,206,526	$	1,064,069
25.	PRIORITY DEBT	$	277,316	$	0		$	0	$	0
26.	UNSECURED DEBT	$	7,503,343	$	7,207,239
27.	OTHER (ATTACH LIST)			$	0		$	0	$	0
28.	TOTAL PREPETITION LIABILITIES	$	24,987,185	$	8,271,308		$	0	$	0
29.	TOTAL LIABILITIES	$	24,987,185	$	27,161,786		$	0	$	0
EQUITY
30.	PREPETITION OWNERS’ EQUITY	0		$	(17,803,179	)
31.	POSTPETITION CUMULATIVE PROFIT OR (LOSS)			$	(5,590,560	)
32.	DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION)			$	0		$	0	$	0
33.	TOTAL EQUITY	$	0	$	(23,393,739	)	$	0	$	0
34.	TOTAL LIABILITIES & OWNERS’ EQUITY	$	24,987,185	$	3,768,047		$	0	$	0

Monthly Operating Report

CASE NAME:	Kitty Hawk Ground, Inc.	ACCRUAL BASIS-2
		2008
CASE NUMBER:	07-44537

INCOME STATEMENT

		MONTH			MONTH		MONTH		QUARTER
		January 2008			0		0		TOTAL
REVENUES
1.	GROSS REVENUES	$	(2,029	)					$	(2,029	)
2.	LESS: RETURNS & DISCOUNTS	$	0		$	0	$	0	$	0
3.	NET REVENUE	$	(2,029	)	$	0	$	0	$	(2,029	)
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	$	(2,029	)	$	0	$	0	$	(2,029	)
OPERATING EXPENSES
9.	OFFICER / INSIDER COMPENSATION	$	0						$	0
10.	SELLING & MARKETING	$	0		$	0	$	0	$	0
11.	GENERAL & ADMINISTRATIVE	$	374,955						$	374,955
12.	RENT & LEASE	$	25,309						$	25,309
13.	OTHER (ATTACH LIST)	$	(119,152	)					$	(119,152	)
14.	TOTAL OPERATING EXPENSES	$	281,112		$	0	$	0	$	281,112
15.	INCOME BEFORE NON-OPERATING INCOME & EXPENSE	$	(283,141	)	$	0	$	0	$	(283,141	)
OTHER INCOME & EXPENSES
16.	NON-OPERATING INCOME (ATT. LIST)	$	505						$	505
17.	NON-OPERATING EXPENSE (ATT. LIST)	$	445,711						$	445,711
18.	INTEREST EXPENSE	$	0						$	0
19.	DEPRECIATION / DEPLETION	$	28,486						$	28,486
20.	AMORTIZATION	$	0						$	0
21.	OTHER (ATTACH LIST)	$	0		$	0	$	0	$	0
22.	NET OTHER INCOME & EXPENSES	$	473,692		$	0	$	0	$	473,692
REORGANIZATION EXPENSES
23.	PROFESSIONAL FEES	$	0		$	0	$	0	$	0
24.	U.S. TRUSTEE FEES	$	0		$	0			$	0
25.	OTHER (ATTACH LIST)	$	0		$	0	$	0	$	0
26.	TOTAL REORGANIZATION EXPENSES	$	0		$	0	$	0	$	0
27.	INCOME TAX	$	0		$	0	$	0	$	0
28.	NET PROFIT (LOSS)	$	(756,833	)	$	0	$	0	$	(756,833	)

Monthly Operating Report

CASE NAME:	Kitty Hawk Ground, Inc.	ACCRUAL BASIS-3
		2008
CASE NUMBER:	07-44537

		MONTH			MONTH		MONTH		QUARTER
		January 2008			0		0		TOTAL
CASH RECEIPTS AND DISBURSEMENTS
1.	CASH - BEGINNING OF MONTH	$	68,770						$	68,770
RECEIPTS FROM OPERATIONS
2.	CASH SALES	$	0		$	0	$	0	$	0
COLLECTION OF ACCOUNTS RECEIVABLE
3.	PREPETITION	$	1,205,023						$	1,205,023
4.	POSTPETITION	$	0		$	0	$	0	$	0
5.	TOTAL OPERATING RECEIPTS	$	1,205,023		$	0	$	0	$	1,205,023
NON - OPERATING RECEIPTS
6.	LOANS & ADVANCES (ATTACH LIST)	$	0		$	0	$	0	$	0
7.	SALE OF ASSETS	$	0		$	0	$	0	$	0
8.	OTHER (ATTACH LIST)	$	(1,150,790	)					$	(1,150,790	)
9.	TOTAL NON-OPERATING RECEIPTS	$	(1,150,790	)	$	0	$	0	$	(1,150,790	)
10.	TOTAL RECEIPTS	$	54,233		$	0	$	0	$	54,233
11.	TOTAL CASH AVAILABLE	$	123,003		$	0	$	0	$	123,003
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	$	54,233		$	0	$	0	$	54,233
33.	CASH - END OF MONTH	$	123,003		$	0	$	0	$	123,003

Monthly Operating Report

CASE NAME:	Kitty Hawk Ground, Inc.	ACCRUAL BASIS-4
		2008
CASE NUMBER:	07-44537

		SCHEDULE		MONTH			MONTH		MONTH
		AMOUNT		January 2008			0		0
ACCOUNTS RECEIVABLE AGING
1.	0-30			$	(26,011	)
2.	31-60			$	3,644
3.	61-90			$	8,131
4.	91+			$	1,302,864
5.	TOTAL ACCOUNTS RECEIVABLE	$	7,763,152	$	1,288,628		$	0	$	0
6.	AMOUNT CONSIDERED UNCOLLECTIBLE	$	0	$	48,193
7.	ACCOUNTS RECEIVABLE (NET)	$	7,763,152	$	1,240,435		$	0	$	0

AGING OF POSTPETITION TAXES AND PAYABLES MONTH: January 2008

		0-30			31-60		61-90		91+
		DAYS			DAYS		DAYS		DAYS		TOTAL
TAXES PAYABLE
1.	FEDERALR	$	0		$	0	$	0	$	0	$	0
2.	STATE	$	0		$	0	$	0	$	0	$	0
3.	LOCAL	$	0		$	0	$	0	$	0	$	0
4.	OTHER (ATTACH LIST)	$	0		$	960	$	0	$	26,935	$	27,895
5.	TOTAL TAXES PAYABLE	$	0		$	960	$	0	$	26,935	$	27,895
6.	ACCOUNTS PAYABLE	$	(85,135	)	$	51,189	$	564,555	$	249,962	$	780,571

STATUS OF POSTPETITION TAXES MONTH: January 2008

		BEGINNING		AMOUNT					ENDING
		TAX		WITHHELD AND/			AMOUNT		TAX
		LIABILITY*		OR 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

CASE NAME:	Kitty Hawk Ground, Inc.	ACCRUAL BASIS-5
		2008
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.

MONTH: January 2008

		Account #1			Account #2		Account #3		TOTAL
BANK RECONCILIATIONS
A.	BANK:	Capital One			N/A		N/A
B.	ACCOUNT NUMBER:	3620477825
C.	PURPOSE (TYPE):	Depository
1.	BALANCE PER BANK STATEMENT	$	123,086						$	123,086
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	$	123,003		$	0	$	0	$	123,003
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	$	123,003

Monthly Operating Report

CASE NAME:	Kitty Hawk Ground, Inc.	ACCRUAL BASIS-6
		2008
CASE NUMBER:	07-44537

MONTH: January 2008

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	$	0	$	34,027
2. Mark Lasky	Salary, Expense Reports	$	0	$	12,078
3. Dan Yongue	Salary, Expense Reports	$	0	$	25,292
4.
5.
6. TOTAL PAYMENTS TO  INSIDERS		$	0	$	71,397

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.		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

CASE NAME:	Kitty Hawk Ground, Inc.	ACCRUAL BASIS-7
		2008
CASE NUMBER:	07-44537

MONTH: January 2008

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 - Four vehicles sold pursuant to court order; additional assets written off due to abandonment when outstations closed.

7, 8, 10 - due to operation shut down, DIP order did not allow payment of expenditures between 10/15 and 10/29 until DIP lender paid in full; payments on post petition liabilties have resumed during 1/08 and should be brought current during 2/08

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.

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

CASE NAME:	Kitty Hawk Ground, Inc.	ACCRUAL BASIS
		2008
CASE NUMBER:	07-44537

MONTH: January 2008

Accrual Basis	Line
Form Number	Number	Footnote/Explanation
2	17	Other expense includes an accrual for $332,871 related to a draw on the Navistar Leasing Letter of Credit ($408,322.50) less the amount of accounts payable outstanding. Claim/rejection has not been reconciled with the amount of the draw.
3	8	All available cash received into each subsidiary cash account is transferred to 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
3	15	Cash receipts collected was automatically transferred to Laurus Master Fund to paydown revolver until paid in full on 12/07; afterwards, cash receiptstranferred 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 Unapplied cash at the end of the reporting cycle, not included on the AR aging, $42,370 and Accrued AR, $5,164
4	Payroll Taxes	There were no employees for Kitty Hawk Ground, Inc. during this reporting period, therefore, there are no payroll tax liabilities or payments reported.

Case Name:	Kitty Hawk Ground, Inc.
Case Number:	07-44537

Details of Other Items

			January 2008
ACCRUAL BASIS - 1
8.		OTHER (ATTACH LIST)	220,181		Reported
		A/R - Clearing	5,931
		A/R - 401(k)	(119	)
		A/R - Owner/Operator	8,540
		A/R - Employees	3,488
		A/R - Payroll Advance	(101	)
		A/R - Other	7,067
		Deposits	195,375
			220,181		Detail
			0		Difference
22.		OTHER (ATTACH LIST)	18,082,012		Reported
		General Accrued AP	849,819
		Intercompany Payables	17,237,204
		A/P - Clearing	1,002
		Accrued Wages	(5,575	)
		Accrued 401(k) contribution	(438	)
			18,082,012		Detail
			0		Difference
ACCRUAL BASIS - 2
13.		OTHER OPERATING EXPENSE	(119,152	)	Reported
		Trucking expense	(84,051	)
		Driver Wages	200
		Fuel	(2,510	)
		Truck Maintenance	10,330
		Freight Handling Contract Costs	(36,515	)
		Equipment Lease	(967	)
		Other support	(5,639	)
			(119,152	)	Detail
			0		Difference
16.		NON-OPERATING INCOME (ATT. LIST)	505		Reported
		Other Income	113
		Interest income	392
			505		Detail
			0		Difference
17.		NON-OPERATING EXPENSE (ATT. LIST)	445,711		Reported
		Lease rejection accrual	332,871
		Net Loss on Disposal of Assets	112,840
			445,711		Detail
			0		Difference
ACCRUAL BASIS - 3
8.	OTHER (ATTACH LIST)		(1,150,790	)	Reported
	Transfer to Kitty Hawk, Inc. (Case 07-44536)		(1,150,790	)
			(1,150,790	)	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
CASE NAME:	Kitty Hawk Cargo, Inc.	ACCRUAL BASIS
		2008
CASE NUMBER:	07-44538
JUDGE:  Russell F. Nelms

UNITED STATES BANKRUPTCY COURT

NORTHERN DISTRICT OF TEXAS

DIVISION 6

MONTHLY OPERATING REPORT

MONTH ENDING: JANUARY 31, 2008

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	February 21, 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	February 21, 2008
PRINTED NAME OF PREPARER	DATE

		Monthly Operating Report
CASE NAME:	Kitty Hawk Cargo, Inc.	ACCRUAL BASIS-1
		2008
CASE NUMBER:	07-44538

COMPARATIVE BALANCE SHEET

		SCHEDULE		MONTH
		AMOUNT		January 2008			MONTH		MONTH
ASSETS
1.	UNRESTRICTED CASH	$	901,444	$	23,495
2.	RESTRICTED CASH			$	0		$	0	$	0
3.	TOTAL CASH	$	901,444	$	23,495		$	0	$	0
4.	ACCOUNTS RECEIVABLE (NET)	$	14,522,323	$	3,717,170
5.	INVENTORY			$	0
6.	NOTES RECEIVABLE			$	0
7.	PREPAID EXPENSES			$	10,204
8.	OTHER (ATTACH LIST)	$	129,586	$	56,359
9.	TOTAL CURRENT ASSETS	$	15,553,353	$	3,807,228		$	0	$	0
10.	PROPERTY, PLANT & EQUIPMENT	$	511,103	$	155,567
11.	LESS: ACCUMULATED DEPRECIATION / DEPLETION	$	0	$	52,297
12.	NET PROPERTY, PLANT & EQUIPMENT	$	511,103	$	103,270		$	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)	$	150,000	$	0		$	0	$	0
16.	TOTAL ASSETS	$	16,214,456	$	3,910,498		$	0	$	0
POSTPETITION LIABILITIES
17.	ACCOUNTS PAYABLE			$	335,328
18.	TAXES PAYABLE			$	21,134
19.	NOTES PAYABLE			$	0		$	0	$	0
20.	PROFESSIONAL FEES			$	0		$	0	$	0
21.	SECURED DEBT			$	0		$	0	$	0
22.	OTHER (ATTACH LIST)			$	22,550,477
23.	TOTAL POSTPETITION LIABILITIES			$	22,906,939		$	0	$	0
PREPETITION LIABILITIES
24.	SECURED DEBT	$	16,684,744	$	136,918
25.	PRIORITY DEBT	$	223,906	$	0
26.	UNSECURED DEBT	$	3,562,306	$	4,044,264
27.	OTHER (ATTACH LIST)			$	0		$	0	$	0
28.	TOTAL PREPETITION LIABILITIES	$	20,470,956	$	4,181,182		$	0	$	0
29.	TOTAL LIABILITIES	$	20,470,956	$	27,088,121		$	0	$	0
EQUITY
30.	PREPETITION OWNERS’ EQUITY			$	(23,236,677	)
31.	POSTPETITION CUMULATIVE PROFIT OR (LOSS)			$	59,054
32.	DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION)			$	0		$	0	$	0
33.	TOTAL EQUITY	$	0	$	(23,177,623	)	$	0	$	0
34.	TOTAL LIABILITIES & OWNERS’ EQUITY	$	20,470,956	$	3,910,498		$	0	$	0

		Monthly Operating Report
CASE NAME:	Kitty Hawk Cargo, Inc.	ACCRUAL BASIS-2
		2008
CASE NUMBER:	07-44538

INCOME STATEMENT

		MONTH			MONTH		MONTH		QUARTER
		January 2008			0		0		TOTAL
REVENUES
1.	GROSS REVENUES	$	31,385		$	0	$	0	$	31,385
2.	LESS: RETURNS & DISCOUNTS	$	0		$	0	$	0	$	0
3.	NET REVENUE	$	31,385		$	0	$	0	$	31,385
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	$	31,385		$	0	$	0	$	31,385
OPERATING EXPENSES
9.	OFFICER / INSIDER COMPENSATION	$	0		$	0	$	0	$	0
10.	SELLING & MARKETING	$	0		$	0	$	0	$	0
11.	GENERAL & ADMINISTRATIVE	$	245,237		$	0	$	0	$	245,237
12.	RENT & LEASE	$	85,000		$	0	$	0	$	85,000
13.	OTHER (ATTACH LIST)	$	(8,412	)	$	0	$	0	$	(8,412	)
14.	TOTAL OPERATING EXPENSES	$	321,825		$	0	$	0	$	321,825
15.	INCOME BEFORE NON-OPERATING INCOME & EXPENSE	$	(290,440	)	$	0	$	0	$	(290,440	)
OTHER INCOME & EXPENSES
16.	NON-OPERATING INCOME (ATT. LIST)	$	2,966,440		$	0	$	0	$	2,966,440
17.	NON-OPERATING EXPENSE (ATT. LIST)	$	0		$	0	$	0	$	0
18.	INTEREST EXPENSE	$	169		$	0	$	0	$	169
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	$	(2,966,271	)	$	0	$	0	$	(2,966,271	)
REORGANIZATION EXPENSES
23.	PROFESSIONAL FEES	$	0		$	0	$	0	$	0
24.	U.S. TRUSTEE FEES	$	0		$	0	$	0	$	0
25.	OTHER (ATTACH LIST)	$	0		$	0	$	0	$	0
26.	TOTAL REORGANIZATION EXPENSES	$	0		$	0	$	0	$	0
27.	INCOME TAX	$	0		$	0	$	0	$	0
28.	NET PROFIT (LOSS)	$	2,675,831		$	0	$	0	$	2,675,831

		Monthly Operating Report
CASE NAME:	Kitty Hawk Cargo, Inc.	ACCRUAL BASIS-3
		2008
CASE NUMBER:	07-44538

		MONTH			MONTH		MONTH		QUARTER
		January 2008			0		0		TOTAL
CASH RECEIPTS AND DISBURSEMENTS
1.	CASH - BEGINNING OF MONTH	$	68,445						$	68,445
RECEIPTS FROM OPERATIONS
2.	CASH SALES	$	0		$	0	$	0	$	0
COLLECTION OF ACCOUNTS RECEIVABLE
3.	PREPETITION	$	802,171		$	0	$	0	$	802,171
4.	POSTPETITION	$	0		$	0	$	0	$	0
5.	TOTAL OPERATING RECEIPTS	$	802,171		$	0	$	0	$	802,171
NON - OPERATING RECEIPTS
6.	LOANS & ADVANCES (ATTACH LIST)	$	0		$	0	$	0	$	0
7.	SALE OF ASSETS	$	0		$	0	$	0	$	0
8.	OTHER (ATTACH LIST)	$	(841,242	)	$	0	$	0	$	(841,242	)
9.	TOTAL NON-OPERATING RECEIPTS	$	(841,242	)	$	0	$	0	$	(841,242
10.	TOTAL RECEIPTS	$	(39,071	)	$	0	$	0	$	(39,071	)
11.	TOTAL CASH AVAILABLE	$	29,374		$	0	$	0	$	29,374
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)	$	5,879		$	0	$	0	$	5,879
26.	TOTAL OPERATING DISBURSEMENTS	$	5,879		$	0	$	0	$	5,879
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	$	5,879		$	0	$	0	$	5,879
32.	NET CASH FLOW	$	(44,950	)	$	0	$	0	$	(44,950	)
33.	CASH - END OF MONTH	$	23,495		$	0	$	0	$	23,495

		Monthly Operating Report
CASE NAME:	Kitty Hawk Cargo, Inc.	ACCRUAL BASIS-4
		2008
CASE NUMBER:	07-44538

		SCHEDULE		MONTH			MONTH		MONTH
		AMOUNT		January 2008			0		0
ACCOUNTS RECEIVABLE AGING
1.	0-30			$	(35,549	)
2.	31-60			$	(46,035	)
3.	61-90			$	(81,009	)
4.	91+			$	403,678
5.	TOTAL ACCOUNTS RECEIVABLE	$	14,522,323	$	241,085		$	0	$	0
6.	AMOUNT CONSIDERED UNCOLLECTIBLE			$	0
7.	ACCOUNTS RECEIVABLE (NET)	$	14,522,323	$	241,085		$	0	$	0

AGING OF POSTPETITION TAXES AND PAYABLES							MONTH:		January 2008
		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)	$	21,134		$	0	$	0	$	0	$	21,134
5.	TOTAL TAXES PAYABLE	$	21,134		$	0	$	0	$	0	$	21,134
6.	ACCOUNTS PAYABLE	$	(17,704	)	$	14,135	$	195,180	$	143,717	$	335,328

STATUS OF POSTPETITION TAXES				MONTH:		January 2008
		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
CASE NAME:	Kitty Hawk Cargo, Inc.	ACCRUAL BASIS-5
		2008
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: January 2008

		Account #1
		Capital One
		3620477841		Account #2		Account #3
		Depository		N/A		N/A		TOTAL
BANK RECONCILIATIONS
A.	BANK:
B.	ACCOUNT NUMBER:
C.	PURPOSE (TYPE):
1.	BALANCE PER BANK STATEMENT	$	21,601					$	21,601
2.	ADD: TOTAL DEPOSITS NOT CREDITED	$	0					$	0
3.	SUBTRACT: OUTSTANDING CHECKS	$	0					$	0
4.	OTHER RECONCILING ITEMS	$	107					$	107
5.	MONTH END BALANCE PER BOOKS	$	21,708	$	0	$	0	$	21,708
6.	NUMBER OF LAST CHECK WRITTEN	None

		DATE OF	TYPE OF	PURCHASE		CURRENT
		PURCHASE	INSTRUMENT	PRICE		VALUE
INVESTMENT ACCOUNTS
BANK, ACCOUNT NAME & NUMBER
7.	N/A
8.
9.
10.
11.	TOTAL INVESTMENTS			$	0	$	0
CASH
12.	CURRENCY ON HAND					$	1,787
13.	TOTAL CASH - END OF MONTH					$	23,495

		Monthly Operating Report
CASE NAME:	Kitty Hawk Cargo, Inc.	ACCRUAL BASIS-6
		2008
CASE NUMBER:	07-44538

	MONTH:	January 2008
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, prepaid 1/08 in 12/07	$	1,048	$	0	$	0
4.	US Bank, cancelled 1/08	$	168,775	$	0	$	0
5.	Other facility leases cancelled 11/07
6.	TOTAL	$	171,926	$	0	$	4,206

		Monthly Operating Report
CASE NAME:	Kitty Hawk Cargo, Inc.	ACCRUAL BASIS-7
		2008
CASE NUMBER:	07-44538

MONTH: January 2008

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 XPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY.

1 - Court approved auction held in Fort Wayne, IN during 1/08

8, 10 - - due to operation shut down, DIP order did not allow payment of expenditures between 10/15 and 10/29 until DIP lender paid in full; payments on post petition liabilties have resumed during 1/08 and should be brought current during 2/08

INSURANCE

		YES	NO
1.	ARE WORKER’S COMPENSATION, GENERAL LIABILITY AND OTHER ECESSARY 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
CASE NAME:	Kitty Hawk Cargo, Inc.	ACCRUAL BASIS
		2008
CASE NUMBER:	07-44538

MONTH: January 2008

Accrual Basis	Line
Form Number	Number	Footnote/Explanation
3	8	All available cash received into each subsidiary cash account is transferred to 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 Accrued AR of $3.5 million related to the proceeds from the Fort Wayne, IN. auction. Funds received in 2/08.
4	Payroll Taxes	There were no employees for Kitty Hawk Cargo, Inc. during this reporting period, therefore, there are no payroll tax liabilities or payments reported.

Case Name:	Kitty Hawk Cargo, Inc.
Case Number:	07-44538

Details of Other Items
		January 2008
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)	22,550,477		Reported
	Intercompany Payables	22,467,772
	Accrued Wages	16,440
	Accrued 401(k)	2,114
	General Accrued AP	64,151
		22,550,477		Detail
		0		Difference
ACCRUAL BASIS - 2
13.	OTHER OPERATING EXPENSE	(8,412	)	Reported
	Chartered Airline Expense	(810	)
	Allocation from Ground	(3,715	)
	Freight Handling Wages	10,930
	Freight Handling Contractors	(20,617	)
	GSE Wages	5,800
		(8,412	)	Detail
		0		Difference
16.	NON-OPERATING INCOME (ATT. LIST)	2,966,440		Reported
	Gain on Sale of Assets	2,966,440
		2,966,440		Detail
		0		Difference
ACCRUAL BASIS - 3
8.	OTHER (ATTACH LIST)	(841,242	)	Reported
	Transfer to Inc (#07-44536)	(841,242	)
		(841,242	)	Detail
		0		Difference
25.	OTHER (ATTACH LIST)	5,879		Reported
	Bank Charges	5,316
	Misc - Petty Cash usage	563
		5,879		Detail
		0		Difference

EX-99.4

Exhibit 99.4

				Monthly Operating Report
CASE NAME:		Kitty Hawk Aircargo, Inc.		ACCRUAL BASIS
				2008
CASE NUMBER:			07-44539
JUDGE:	Russell F. Nelms

UNITED STATES BANKRUPTCY COURT

NORTHERN DISTRICT OF TEXAS

DIVISION 6

MONTHLY OPERATING REPORT

MONTH ENDING: JANUARY 31, 2008

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	February 21, 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	February 21, 2008
PRINTED NAME OF PREPARER	DATE

			Monthly Operating Report
CASE NAME:	Kitty Hawk Aircargo, Inc.		ACCRUAL BASIS-1
			2008
CASE NUMBER:		07-44539

COMPARATIVE BALANCE SHEET

		SCHEDULE		MONTH
		AMOUNT		January 2008		MONTH		MONTH
ASSETS
1.	UNRESTRICTED CASH	$	2,913	$	142,416
2.	RESTRICTED CASH			$	0	$	0	$	0
3.	TOTAL CASH	$	2,913	$	142,416	$	0	$	0
4.	ACCOUNTS RECEIVABLE (NET)	$	428,572	$	623,545
5.	INVENTORY	$	1,807,835	$	1,355,242
6.	NOTES RECEIVABLE	$	0	$	0
7.	PREPAID EXPENSES	$	538,000	$	572,538
8.	OTHER (ATTACH LIST)	$	2,114,882	$	205,518
9.	TOTAL CURRENT ASSETS	$	4,892,202	$	2,899,259	$	0	$	0
10.	PROPERTY, PLANT & EQUIPMENT	$	359,058	$	1,181,826
11.	LESS: ACCUMULATED
	DEPRECIATION / DEPLETION	$	0	$	927,686
12.	NET PROPERTY, PLANT &
	EQUIPMENT	$	359,058	$	254,140	$	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	$	6,859,002
16.	TOTAL ASSETS	$	5,251,260	$	10,012,401	$	0	$	0
POSTPETITION LIABILITIES
17.	ACCOUNTS PAYABLE			$	430,867
18.	TAXES PAYABLE			$	93,039
19.	NOTES PAYABLE			$	0	$	0	$	0
20.	PROFESSIONAL FEES			$	0	$	0	$	0
21.	SECURED DEBT			$	0	$	0	$	0
22.	OTHER (ATTACH LIST)			$	985,594
23.	TOTAL POSTPETITION LIABILITIES			$	1,509,500	$	0	$	0
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	$	6,324,435
27.	OTHER (ATTACH LIST)			$	0	$	0	$	0
28.	TOTAL PREPETITION LIABILITIES	$	22,170,447	$	6,324,435	$	0	$	0
29.	TOTAL LIABILITIES	$	22,170,447	$	7,833,935	$	0	$	0
EQUITY
30.	PREPETITION OWNERS’ EQUITY			$	3,848,021
31.	POSTPETITION CUMULATIVE PROFIT OR (LOSS)			$	(1,669,555)
32.	DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION)			$	0	$	0	$	0
33.	TOTAL EQUITY	$	0	$	2,178,466	$	0	$	0
34.	TOTAL LIABILITIES & OWNERS’ EQUITY	$	22,170,447	$	10,012,401	$	0	$	0

			Montehly Operating Report
CASE NAME:	Kitty Hawk Aircargo, Inc.		ACCRUAL BASIS-2
			2008
CASE NUMBER:		07-44539

INCOME STATEMENT

		MONTH		MONTH	MONTH	QUARTER
		January 2008		0	0	TOTAL
REVENUES
1.	GROSS REVENUES	$ 36,900		$ 0	$ 0	$ 36,900
2.	LESS: RETURNS & DISCOUNTS	$ 0		$ 0	$ 0	$ 0
3.	NET REVENUE	$ 36,900		$ 0	$ 0	$ 36,900
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	$ 36,900		$ 0	$ 0	$ 36,900
OPERATING EXPENSES
9.	OFFICER / INSIDER COMPENSATION	$ 24,616		$ 0	$ 0	$ 24,616
10.	SELLING & MARKETING	$ 0		$ 0	$ 0	$ 0
11.	GENERAL & ADMINISTRATIVE	$ 115,042		$ 0	$ 0	$ 115,042
12.	RENT & LEASE	$ 23,462		$ 0	$ 0	$ 23,462
13.	OTHER (ATTACH LIST)	$ 236,341		$ 0	$ 0	$ 236,341
14.	TOTAL OPERATING EXPENSES	$ 399,461		$ 0	$ 0	$ 399,461
15.	INCOME BEFORE NON-OPERATING INCOME & EXPENSE	$(362,561	)	$ 0	$ 0	$(362,561	)
OTHER INCOME & EXPENSES
16.	NON-OPERATING INCOME (ATT. LIST)	$ 112,010		$ 0	$ 0	$ 112,010
17.	NON-OPERATING EXPENSE (ATT. LIST)	$ 0		$ 0	$ 0	$ 0
18.	INTEREST EXPENSE	$ 0		$ 0	$ 0	$ 0
19.	DEPRECIATION / DEPLETION	$ 12,661		$ 0	$ 0	$ 12,661
20.	AMORTIZATION	$ 0		$ 0	$ 0	$ 0
21.	OTHER (ATTACH LIST)	$ 0		$ 0	$ 0	$ 0
22.	NET OTHER INCOME & EXPENSES	$(99,349	)	$ 0	$ 0	$(99,349	)
REORGANIZATION EXPENSES
23.	PROFESSIONAL FEES	$ 0		$ 0	$ 0	$ 0
24.	U.S. TRUSTEE FEES	$ 0		$ 0	$ 0	$ 0
25.	OTHER (ATTACH LIST)	$ 0		$ 0	$ 0	$ 0
26.	TOTAL REORGANIZATION EXPENSES	$ 0		$ 0	$ 0	$ 0
27.	INCOME TAX	$ 0		$ 0	$ 0	$ 0
28.	NET PROFIT (LOSS)	$(263,212	)	$ 0	$ 0	$(263,212	)

			Monthly Operating Report
CASE NAME:	Kitty Hawk Aircargo, Inc.		ACCRUAL BASIS-3
			2008
CASE NUMBER:		07-44539

		MONTH			MONTH		MONTH		QUARTER
		January 2008			0		0		TOTAL
CASH RECEIPTS AND DISBURSEMENTS
1.	CASH - BEGINNING OF MONTH	$	564,506						$	564,506
RECEIPTS FROM OPERATIONS
2.	CASH SALES	$	0		$	0	$	0	$	0
COLLECTION OF ACCOUNTS RECEIVABLE
3.	PREPETITION	$	182,283		$	0	$	0	$	182,283
4.	POSTPETITION	$	0		$	0	$	0	$	0
5.	TOTAL OPERATING RECEIPTS	$	182,283		$	0	$	0	$	182,283
NON - OPERATING RECEIPTS
6.	LOANS & ADVANCES (ATTACH LIST)	$	0		$	0	$	0	$	0
7.	SALE OF ASSETS	$	23,234		$	0	$	0	$	23,234
8.	OTHER (ATTACH LIST)	$	(612,074	)	$	0	$	0	$	(612,074	)
9.	TOTAL NON-OPERATING RECEIPTS	$	(588,840	)	$	0	$	0	$	(588,840	)
10.	TOTAL RECEIPTS	$	(406,557	)	$	0	$	0	$	(406,557	)
11.	TOTAL CASH AVAILABLE	$	157,949		$	0	$	0	$	157,949
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)	$	15,533		$	0	$	0	$	15,533
26.	TOTAL OPERATING DISBURSEMENTS	$	15,533		$	0	$	0	$	15,533
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	$	15,533		$	0	$	0	$	15,533
32.	NET CASH FLOW	$	(422,090	)	$	0	$	0	$	(422,090	)
33.	CASH - END OF MONTH	$	142,416		$	0	$	0	$	142,416

			Monthly Operating Report
CASE NAME:	Kitty Hawk Aircargo, Inc.		ACCRUAL BASIS-4
			2008
CASE NUMBER:		07-44539

		SCHEDULE		MONTH		MONTH		MONTH
		AMOUNT		January 2008		0		0
ACCOUNTS RECEIVABLE AGING
1.	0-30			$	151,830
2.	31-60			$	41,823
3.	61-90			$	21,483
4.	91+			$	301,988
5.	TOTAL ACCOUNTS RECEIVABLE	$	428,572	$	517,124	$	0	$	0
6.	AMOUNT CONSIDERED UNCOLLECTIBLE	$	0	$	0	$	0	$	0
7.	ACCOUNTS RECEIVABLE (NET)	$	428,572	$	517,124	$	0	$	0

AGING OF POSTPETITION TAXES AND PAYABLES MONTH: January 2008

		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)	$	93,039	$	0	$	0	$	0	$	93,039
5.	TOTAL TAXES PAYABLE	$	0	$	0	$	0	$	0	$	93,039
6.	ACCOUNTS PAYABLE	$	154,528	$	115,771	$	106,304	$	54,264	$	430,867

STATUS OF POSTPETITION TAXES MONTH: January 2008

		BEGINNING TAX LIABILITY*		AMOUNT WITHHELD AND/ OR ACCRUED		AMOUNT PAID		ENDING TAX LIABILITY
FEDERAL
1.	WITHHOLDING**	$	0	$	27,797	$	27,797	$	0
2.	FICA-EMPLOYEE**	$	0	$	17,121	$	17,121	$	0
3.	FICA-EMPLOYER**	$	0	$	17,121	$	17,121	$	0
4.	UNEMPLOYMENT	$	0	$	1,474	$	1,474	$	0
5.	INCOME	$	0	$	0	$	0	$	0
6.	OTHER (ATTACH LIST)	$	0	$	15,498	$	15,498	$	0
7.	TOTAL FEDERAL TAXES	$	0	$	79,011	$	79,011	$	0
STATE AND LOCAL
8.	WITHHOLDING	$	0	$	1,105	$	1,105	$	0
9.	SALES	$	0	$	0	$	0	$	0
10.	EXCISE	$	0	$	0	$	0	$	0
11.	UNEMPLOYMENT	$	0	$	3,974	$	3,974	$	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	$	5,079	$	5,079	$	0
16.	TOTAL TAXES	$	0	$	84,090	$	84,090	$	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
CASE NAME:	Kitty Hawk Aircargo, Inc.		ACCRUAL BASIS-5
			2008
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:		January 2008
		Account #1			Account #2		Account #3
BANK RECONCILIATIONS
A.	BANK:	Capital One			JP Morgan Chase		Capital One
B.	ACCOUNT NUMBER:	3620477833			100130152		3620562563		TOTAL
C.	PURPOSE (TYPE):	Depository			Operating		Asset Sales
1.	BALANCE PER BANK STATEMENT	$	11,750		$	0	$	130,066	$	141,816
2.	ADD: TOTAL DEPOSITS NOT CREDITED	$	0		$	0	$	0	$	0
3.	SUBTRACT: OUTSTANDING CHECKS	$	0		$	0	$	0	$	0
4.	OTHER RECONCILING ITEMS	$	0		$	0	$	250	$	250
5.	MONTH END BALANCE PER BOOKS	$	11,750		$	0	$	130,316	$	142,066
6.	NUMBER OF LAST CHECK WRITTEN	None			No Checks		No Checks

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	$	350
13.	TOTAL CASH - END OF MONTH	$	142,416

			Monthly Operating Report
CASE NAME:	Kitty Hawk Aircargo, Inc.		ACCRUAL BASIS-6
			2008
CASE NUMBER:		07-44539

MONTH: January 2008

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.	Robbie Barron	Salary, Expense Reports	$	15,385	$	57,768
2.	Danny Clifton	Salary, Expense Reports	$	0	$	22,418
3.	Mark Luman	Salary, Expense Reports	$	9,231	$	30,456
4.
5.
6.	TOTAL PAYMENTS
	TO INSIDERS		$	24,616	$	110,642

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

* 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.	GECAS; all aircraft returned 12/07	$	738,159			$	1,372,597
2.	AirLease International; all aircraft returned 1/08	$	48,910			$	0
3.
4.
5.
6.	TOTAL	$	787,069	$	0	$	1,372,597

			Monthly Operating Report
CASE NAME:	Kitty Hawk Aircargo, Inc.		ACCRUAL BASIS-7
			2008
CASE NUMBER:		07-44539

MONTH: January 2008

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 and assets sold in the Court approved auction in Fort Wayne, IN.

10 - due to operation shut down, DIP order did not allow payment of expenditures between 10/15 and 10/29 until DIP lender paid in full; payments on post petition liabilties have resumed during 1/08 and should be brought current during 2/08 

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
CASE NAME:	Kitty Hawk Aircargo, Inc.		ACCRUAL BASIS
			2008
CASE NUMBER:		07-44539

MONTH: January 2008

Accrual BasisForm Number	LineNumber	Footnote/Explanation
3	8	All available cash received into each subsidiary cash account is transferred to 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 $106,423 of Accrued AR related to the sale of assets in Fort Wayne, IN. Net proceeds were received in 2/08.

Case Name:	Kitty Hawk Aircargo, Inc.
Case Number:	07-44539
Details of Other Items

	January 2008
ACCRUAL BASIS - 1
8. OTHER (ATTACH LIST)	205,518		Reported
AR 401(k)	(834	)
AR Employees	(3,084	)
Fuel intoplane suspense	(32,255	)
Deposits	241,691
	205,518		Detail
	0		Difference
15. OTHER (ATTACH LIST)	6,859,002		Reported
Intercompany receivable	6,859,002
	6,859,002		Detail
	0		Difference
22. OTHER (ATTACH LIST)	985,594		Reported
Payroll clearing	(3,394	)
General Accrued AP	950,498
Accrued Union Dues	(12,827	)
Accrued wages	51,389
Accrued 401(k)	(72	)
	985,594		Detail
	0		Difference
ACCRUAL BASIS - 2
13. OTHER OPERATING EXPENSE	236,341		Reported
Crewmember wages	11,852
Crewmember travel	(10,928	)
Training	(500	)
Flight Operations Admin wages & travel	32,687
Flight Planning Expense	9,905
Aircraft Insurance	1,169
Ground Operating Expense	(8,110	)
Fuel	(8,201	)
Maintenance wages & travel	39,945
Support costs	(4,854	)
Contract labor	(5,867	)
Parts Related Expense	29,868
Contractual Maintenance agreements	147,786
Allocation to Cargo	0
On demand charter expense	1,589
	236,341		Detail
	0		Difference
16. NON-OPERATING INCOME (ATT. LIST)	112,010		Reported
Interest income	864
Gain on sale of assets	111,146
	112,010		Detail
	0		Difference
ACCRUAL BASIS - 3
8. OTHER (ATTACH LIST)	(612,074	)	Reported
Transfer to Inc (#07-44536)	(703,372	)
Transfer from Inc (#07-44536)	90,563
Interest Income	735
	(612,074	)	Detail
	0		Difference
25. OTHER (ATTACH LIST)	15,533		Reported
Federal Excise Tax payments	15,498
Bank Fees	35
	15,533		Detail
	0		Difference
ACCRUAL BASIS - 4
Status of Post Petition Taxes	15,498		Reported
Federal Excise Taxes - collected and remitted	15,498
	15,498		Detail
	0		Difference
ACCRUAL BASIS - 4
Aging of Post-petition Taxes	93,039		Reported
Accrued FICA related to accrued wages	2,782
Accrued franchise tax	388
Accrued property tax	89,869
	93,039		Detail
	0		Difference

EX-99.5

Exhibit 99.5

			Monthly Operating Report
CASE NAME:		KH Ground, Inc.	ACCRUAL BASIS
			2008
CASE NUMBER:		07-44540
JUDGE:	Russell F. Nelms

UNITED STATES BANKRUPTCY COURT

NORTHERN DISTRICT OF TEXAS

DIVISION 6

MONTHLY OPERATING REPORT

MONTH ENDING: JANUARY 31, 2008

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	February 21, 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	February 21, 2008
PRINTED NAME OF PREPARER	DATE

	Monthly Operating Report
CASE NAME: KH Ground, Inc.	ACCRUAL BASIS-1
	2008
CASE NUMBER: 07-44540

COMPARATIVE BALANCE SHEET

		SCHEDULE		MONTH
		AMOUNT		January 2008			MONTH		MONTH
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	$	0
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	$	0
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	$	250		$	0	$	0
28.	TOTAL PREPETITION LIABILITIES	$	16,684,744	$	250		$	0	$	0
29.	TOTAL LIABILITIES	$	16,684,744	$	250		$	0	$	0
EQUITY
30.	PREPETITION OWNERS’ EQUITY	0		$	0		$	0	$	0
31.	POSTPETITION CUMULATIVE PROFIT OR (LOSS)			$	(250	)	$	0	$	0
32.	DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION)			$	0		$	0	$	0
33.	TOTAL EQUITY	$	0	$	(250	)	$	0	$	0
34.	TOTAL LIABILITIES & OWNERS’ EQUITY	$	16,684,744	$	0		$	0	$	0

	Monthly Operating Report
CASE NAME: KH Ground, Inc.	ACCRUAL BASIS-2
	2008
CASE NUMBER: 07-44540

INCOME STATEMENT

		MONTH		MONTH		MONTH		QUARTER
		January 2008		0		0		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 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	$	0	$	0
25.	OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
26.	TOTAL REORGANIZATION EXPENSES	$	0	$	0	$	0	$	0
27.	INCOME TAX	$	0	$	0	$	0
28.	NET PROFIT (LOSS)	$	0	$	0	$	0	$	0

	Monthly Operating Report
CASE NAME: KH Ground, Inc.	ACCRUAL BASIS-3
	2008
CASE NUMBER: 07-44540

		MONTH		MONTH		MONTH		QUARTER
		January 2008		0		0		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
CASE NAME: KH Ground, Inc.	ACCRUAL BASIS-4
	2008
CASE NUMBER: 07-44540

		SCHEDULE		MONTH		MONTH		MONTH
		AMOUNT		January 2008		0		0
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:		January 2008
		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:			January 2008
		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

CASE NAME: KH Ground, Inc.	ACCRUAL BASIS-5
	2008
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:			January 2008
		Account #1			Account #2			Account #3		TOTAL
BANK RECONCILIATIONS
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	TYPE OF	PURCHASE		CURRENT
		PURCHASE	INSTRUMENT	PRICE		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
CASE NAME: KH Ground, Inc.	ACCRUAL BASIS-6
	2008
CASE NUMBER: 07-44540

MONTH: January 2008

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.	No insiders
2.
3.
4.
5.
6.	TOTAL PAYMENTS TO INSIDERS		$	0	$	0

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.	See Case #07-44536, Kitty Hawk, Inc.
2.
3.
4.
5.
6.	TOTAL	$	0	$	0	$	0

	Monthly Operating Report
CASE NAME: KH Ground, Inc.	ACCRUAL BASIS-7
	2008
CASE NUMBER: 07-44540

MONTH: January 2008

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

	Footnotes Supplement
CASE NAME: KH Ground, Inc.	ACCRUAL BASIS
	2008
CASE NUMBER: 07-44540
MONTH:	January 2008

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

Case Name:	KH Ground, Inc.
Case Number:	07-44540
Details of Other Items

	January 2008
ACCRUAL BASIS - 1
27. OTHER (ATTACH LIST)	250	Reported
Intercompany Payable to Kitty Hawk, Inc. (Case No. 07-44536)	250
	250	Detail
	0	Difference