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):  April 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 April 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 March 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 March 31, 2008
Exhibit 99.2	Monthly Financial Report of Kitty Hawk Ground, Inc. for Month Ending March 31, 2008
Exhibit 99.3	Monthly Financial Report of Kitty Hawk Cargo, Inc. for Month Ending March 31, 2008
Exhibit 99.4	Monthly Financial Report of Kitty Hawk Aircargo, Inc. for Month Ending March 31, 2008
Exhibit 99.5	Monthly Financial Report of KH Ground, Inc. for Month Ending March 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: April 25, 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: MARCH 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	April 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	April 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			MONTH			MONTH
					AMOUNT		January 2008			February 2008			March 2008
ASSETS
1.				UNRESTRICTED CASH	$	0	$	2,509,077		$	6,297,770		$	5,959,533
2.				RESTRICTED CASH	$	2,869,929	$	1,935,883		$	1,786,125		$	1,789,489
3.				TOTAL CASH	$	2,869,929	$	4,444,960		$	8,083,895		$	7,749,022
4.				ACCOUNTS RECEIVABLE (NET)			$	(936,674	)	$	(936,674	)	$	(936,674	)
5.				INVENTORY			$	0		$	0		$	0
6.				NOTES RECEIVABLE			$	0		$	0		$	0
7.				PREPAID EXPENSES			$	395,855		$	364,311		$	319,593
8.				OTHER (ATTACH LIST)	$	15,953	$	33,385,941		$	29,840,425		$	30,195,795
9.				TOTAL CURRENT ASSETS	$	2,885,882	$	37,290,082		$	37,351,957		$	37,327,736
10.				PROPERTY, PLANT & EQUIPMENT	$	1,425,325	$	3,362,423		$	3,362,423		$	2,128,842
11.				LESS: ACCUMULATED DEPRECIATION / DEPLETION	$	0	$	1,876,033		$	1,899,365		$	797,783
12.				NET PROPERTY, PLANT & EQUIPMENT	$	1,425,325	$	1,486,390		$	1,463,058		$	1,331,059
13.				DUE FROM INSIDERS	$	0	$	0		$	0		$	0
14.				OTHER ASSETS - NET OF
				AMORTIZATION (ATTACH LIST)	$	0	$	3,486,848		$	3,486,848		$	3,486,848
15.				OTHER (ATTACH LIST)	$	1,109,030	$	0		$	0		$	0
16.				TOTAL ASSETS	$	5,420,237	$	42,263,320		$	42,301,863		$	42,145,643
POSTPETITION LIABILITIES
17.			ACCOUNTS PAYABLE				$	(2,900	)	$	(16,359	)	$	(31,224	)
18.			TAXES PAYABLE				$	0		$	0		$	0
19.			NOTES PAYABLE				$	0		$	0		$	0
20.			PROFESSIONAL FEES				$	944,833		$	1,128,844		$	1,291,673
21.			SECURED DEBT				$	0		$	0		$	0
22.			OTHER (ATTACH LIST)				$	263,556		$	277,273		$	287,728
23.			TOTAL POSTPETITION LIABILITIES				$	1,205,489		$	1,389,758		$	1,548,177
PREPETITION LIABILITIES
24.		SECURED DEBT			$	15,602,760	$	(61,183	)	$	(78,983	)	$	(96,854	)
25.		PRIORITY DEBT			$	56,297	$	0		$	0		$	0
26.		UNSECURED DEBT			$	1,010,347	$	699,306		$	695,370		$	595,136
27.		OTHER (ATTACH LIST)					$	0		$	0		$	0
28.		TOTAL PREPETITION LIABILITIES			$	16,669,404	$	638,123		$	616,387		$	498,282
29.		TOTAL LIABILITIES			$	16,669,404	$	1,843,612		$	2,006,145		$	2,046,459
EQUITY
30.	PREPETITION OWNERS’ EQUITY						$	41,090,061		$	41,090,061		$	41,090,061
31.	POSTPETITION CUMULATIVE PROFIT OR (LOSS)						$	(670,353	)	$	(794,343	)	$	(990,877	)
32.	DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION)						$	0		$	0		$	0
33.	TOTAL EQUITY				$	0	$	40,419,708		$	40,295,718		$	40,099,184
34.	TOTAL LIABILITIES & OWNERS’ EQUITY				$	16,669,404	$	42,263,320		$	42,301,863		$	42,145,643

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

INCOME STATEMENT

		MONTH			MONTH			MONTH			QUARTER
		January 2008			February 2008			March 2008			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		$	89,057		$	131,846		$	360,986
10.	SELLING & MARKETING	$	0		$	0		$	0		$	0
11.	GENERAL & ADMINISTRATIVE	$	265,188		$	228,175		$	90,212		$	583,575
12.	RENT & LEASE	$	38,735		$	38,735		$	38,656		$	116,126
13.	OTHER (ATTACH LIST)	$	(555,510	)	$	(427,368	)	$	(292,630	)	$	(1,275,508	)
14.	TOTAL OPERATING EXPENSES	$	(111,504	)	$	(71,401	)	$	(31,916	)	$	(214,821	)
15.	INCOME BEFORE NON-OPERATING INCOME & EXPENSE	$	111,504		$	71,401		$	31,916		$	214,821
OTHER INCOME & EXPENSES
16.	NON-OPERATING INCOME (ATT. LIST)	$	12,847		$	13,484		$	12,844		$	39,175
17.	NON-OPERATING EXPENSE (ATT. LIST)	$	0		$	0		$	53,925		$	53,925
18.	INTEREST EXPENSE	$	1,603		$	1,532		$	1,460		$	4,595
19.	DEPRECIATION / DEPLETION	$	23,783		$	23,332		$	12,680		$	59,795
20.	AMORTIZATION	$	0		$	0		$	0		$	0
21.	OTHER (ATTACH LIST)	$	0		$	0		$	0		$	0
22.	NET OTHER INCOME & EXPENSES	$	12,539		$	11,380		$	55,221		$	79,140
REORGANIZATION EXPENSES
23.	PROFESSIONAL FEES	$	207,689		$	184,011		$	162,829		$	554,529
24.	U.S. TRUSTEE FEES	$	0		$	0		$	10,400		$	10,400
25.	OTHER (ATTACH LIST)	$	0		$	0		$	0		$	0
26.	TOTAL REORGANIZATION EXPENSES	$	207,689		$	184,011		$	173,229		$	564,929
27.	INCOME TAX	$	0		$	0		$	0		$	0
28.	NET PROFIT (LOSS)	$	(108,724	)	$	(123,990	)	$	(196,534	)	$	(429,248	)

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

		MONTH		MONTH		MONTH			QUARTER
		January 2008		February 2008		March 2008			TOTAL
CASH RECEIPTS AND DISBURSEMENTS
1.	CASH - BEGINNING OF MONTH	$	1,657,197	$	2,509,077	$	6,297,770		$	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	$	0		$	0
7.	SALE OF ASSETS	$	0	$	0	$	0		$	0
8.	OTHER (ATTACH LIST)	$	2,691,682	$	4,839,255	$	228,848		$	7,759,785
9.	TOTAL NON-OPERATING RECEIPTS	$	2,691,682	$	4,839,255	$	228,848		$	7,759,785
10.	TOTAL RECEIPTS	$	2,691,682	$	4,839,255	$	228,848		$	7,759,785
11.	TOTAL CASH AVAILABLE	$	4,348,879	$	7,348,332	$	6,526,618		$	9,416,982
OPERATING DISBURSEMENTS
12.	NET PAYROLL	$	263,883	$	160,663	$	183,448		$	607,994
13.	PAYROLL TAXES PAID	$	122,432	$	67,789	$	79,025		$	269,246
14.	SALES, USE & OTHER TAXES PAID	$	0	$	7,891	$	612		$	8,503
15.	SECURED / RENTAL / LEASES	$	26,477	$	160,988	$	13,200		$	200,665
16.	UTILITIES	$	28,689	$	45,029	$	14,745		$	88,463
17.	INSURANCE	$	165,616	$	53,346	$	68,040		$	287,002
18.	INVENTORY PURCHASES	$	2,319	$	0	$	0		$	2,319
19.	VEHICLE EXPENSES	$	0	$	0	$	0		$	0
20.	TRAVEL	$	0	$	496	$	0		$	496
21.	ENTERTAINMENT	$	0	$	0	$	0		$	0
22.	REPAIRS  & MAINTENANCE	$	106,059	$	86,417	$	12,107		$	204,583
23.	SUPPLIES	$	0	$	0	$	0		$	0
24.	ADVERTISING	$	0	$	1,162	$	0		$	1,162
25.	OTHER (ATTACH LIST)	$	1,089,077	$	466,781	$	195,908		$	1,751,766
26.	TOTAL OPERATING DISBURSEMENTS	$	1,804,552	$	1,050,562	$	567,085		$	3,422,199
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	$	1,050,562	$	567,085		$	3,457,449
32.	NET CASH FLOW	$	851,880	$	3,788,693	$	(338,237	)	$	4,302,336
33.	CASH - END OF MONTH	$	2,509,077	$	6,297,770	$	5,959,533		$	5,959,533

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

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

AGING OF POSTPETITION TAXES AND PAYABLES MONTH: March 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	$	(43,579	)	$	374	$	3,059	$	8,922	$	(31,224	)

STATUS OF POSTPETITION TAXES MONTH: March 2008

			BEGINNING		AMOUNT						ENDING
			TAX		WITHHELD AND/			AMOUNT			TAX
			LIABILITY*		0R ACCRUED			PAID			LIABILITY
FEDERAL
1.	WITHHOLDING**		$	0	$	28,229		$	28,229		$	0
2.	FICA-EMPLOYEE**		$	0	$	13,421		$	13,421		$	0
3.	FICA-EMPLOYER**		$	0	$	13,421		$	13,421		$	0
4.	UNEMPLOYMENT		$	0	$	15		$	15		$	0
5.	INCOME		$	0	$	0		$	0		$	0
6.	OTHER (ATTACH LIST)		$	0	$	0		$	0		$	0
7.	TOTAL FEDERAL TAXES		$	0	$	55,086		$	55,086		$	0
STATE AND LOCAL
8.		WITHHOLDING	$	0	$	231		$	231		$	0
9.		SALES	$	0	$	0		$	0		$	0
10.		EXCISE	$	0	$	0		$	0		$	0
11.		UNEMPLOYMENT	$	0	$	(1,532	)	$	(1,532	)	$	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	$	(1,301	)	$	(1,301	)	$	0
16.		TOTAL TAXES	$	0	$	53,785		$	53,785		$	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:	March 2008
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	$	94,024		$	32,272		$	126,296
4.	OTHER RECONCILING ITEMS	$	5,323	$	0		$	0		$	5,323
5.	MONTH END BALANCE PER BOOKS	$	155,323	$	(94,024	)	$	(32,272	)	$	29,027
6.	NUMBER OF LAST CHECK WRITTEN	No checks		110121			067014/210620

INVESTMENT ACCOUNTS

		DATE OF	TYPE OF	PURCHASE		CURRENT
		PURCHASE	INSTRUMENT	PRICE		VALUE
BANK, ACCOUNT NAME & NUMBER
7.	JP Morgan Chase - Overnight Sweep -	3/31/2008	money market	$	5,930,306	$	5,930,306
8.
9.
10.
11.	TOTAL INVESTMENTS			$	5,930,306	$	5,930,306

CASH
12.	CURRENCY ON HAND	$	200
13.	TOTAL CASH - END OF MONTH	$	5,959,533

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

MONTH: March 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	$	35,908	$	144,862
2.	Jessica L. Wilson	Salary, Expense Reports	$	25,533	$	90,620
3.	Brad Eagelston	Salary, Expense Reports	$	23,867	$	88,696
4.	David Rescino	Salary, Expense Reports	$	36,538	$	145,171
5.	Steven Markhoff	Salary, Expense Reports	$	0	$	18,333
6.	Mel Keating	Executive Committee Fee, Exp Reports	$	10,000	$	158,652
7.	TOTAL PAYMENTS TO INSIDERS		$	131,846	$	646,334

PROFESSIONALS

		DATE OF COURT							TOTAL
		ORDER AUTHORIZING	AMOUNT		AMOUNT		TOTAL PAID		INCURRED
NAME		PAYMENT	APPROVED		PAID		TO DATE		& UNPAID*
1.	Andrews Kurth LLP								$	948,435
2.	Otterbourg, Steindler, Houston & Rosen, P.C.								$	200,000
3.	Munsch Hardt Kopf & Harr, P.C.								$	61,560
4.	Morrison & Foerster								$	14,796
5.	BMC Group								$	66,882
6.	TOTAL PAYMENTS TO PROFESSIONALS		$	0	$	0	$	0	$	1,291,673

* 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	$	12,020	$	0
3.	Citicorp Vendor Finance	$	6,005	$	0	$	36,030
4.	DFW Airport - Facility rent, prepaid 4/08 in 3/08	$	37,295	$	9,074	$	0
5.
6.	TOTAL	$	55,320	$	21,094	$	36,030

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

	MONTH:	March 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 i/a/w de minimis asset sale motion approved by the Court and Court approved auction 3/18 - 3/20    

#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 continued during 3/08        

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, cancelled 2/08	Quarterly; $281,953 (original policy)
B737 Aviation Deductible	Illinois National Insurance	7/1/07 - 6/30/08, cancelled 2/08	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: March 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.
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

CASE NAME:	Kitty Hawk, Inc.
CASE NUMBER:	07-44536
Details of Other Items

		March 2008
ACCRUAL BASIS - 1
8. OTHER (ATTACH LIST)		30,195,795		Reported
	Flex Spending deposit	17,283
	A/R - Accrued	61,248
	A/R - 401(k) Loan	37
	A/R - Other	24
	A/R - Employees	15
	A/R - Travel Advance	15,720
	Deposits	43,368
	Professional Fees Retainer	457,365
	Intercompany Receivables	29,600,735
		30,195,795		Detail
		0		Difference
14. OTHER ASSETS - NET OF AMORTIZATION
	ATTACH LIST	3,486,848		Reported
	Laurus Loan Organization Costs - Warrants Value	3,486,848
		3,486,848		Detail
		0		Difference
22. OTHER (ATTACH LIST)		287,728		Reported
	A/P Clearing	(3,953	)
	General Accrued AP	325,006
	Accrued Health Savings Plan	(33,539	)
	AFLAC Deductions	(12	)
	Accrued 401(k)	226
		287,728		Detail
		0		Difference
ACCRUAL BASIS - 2
13. OTHER (ATTACH LIST)		(292,630	)	Reported
	G&A allocation to subsidiaries	(292,630	)
		(292,630	)	Detail
		0		Difference
16. NON-OPERATING INCOME (ATT. LIST)		12,844		Reported
	Interest Income	12,844
		12,844		Detail
		0		Difference
16. NON-OPERATING EXPENSE (ATT. LIST)		53,925		Reported
	Loss of sale of assets	53,925
		53,925		Detail
		0		Difference
ACCRUAL BASIS - 3
8. OTHER (ATTACH LIST)		228,848		Reported
	Transfers in from Kitty Hawk Cargo (Case 07-44538)	68,883
	Transfers in from Kitty Hawk Ground (Case 07-44537)	113,937
	Transfers in from Kitty Hawk Aircargo (Case 07-44539)	0
	Transfers from Asset Sales Account (Case 07-44539)	0
	Transfers to Asset Sales Account (Case 07-44539)	0
	Proceeds from FWA Auction	0
	Misc Refunds	36,677
	Misc Deposits	0
	Interest income	9,351
	CD Redemption - Corporate Credit Card	0
		228,848		Detail
		0		Difference
25. OTHER (ATTACH LIST)		195,908		Reported
	401(k)	10,159
	Aircraft landing and parking	0
	Bank fees	7,478
	BOD Fees	0
	Contract labor	71,303
	Communications	12,283
	Employee expense reports	2,230
	Executive committee fees	10,000
	Flight crew expense	0
	Freight handling	21,217
	Fuel	0
	IT Support	0
	Payroll processing fees	1,208
	Non-reorganization professional fees	16,314
	Security	187
	Shipping	1,290
	Trucking	33,227
	Misc	9,012
	Transfer to Kitty Hawk Aircargo (Case 07-44539)	0
		195,908		Detail
		0		Difference

EX-99.2

Exhibit 99.2

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

UNITED STATES BANKRUPTCY COURT

NORTHERN DISTRICT OF TEXAS

DIVISION 6

MONTHLY OPERATING REPORT

MONTH ENDING: March 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	April 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	April 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			MONTH			MONTH
		AMOUNT		January 2008			February 2008			March 2008
ASSETS
1.	UNRESTRICTED CASH	$	106,914	$	123,003		$	2,562		$	53,024
2.	RESTRICTED CASH			$	0		$	0		$	0
3.	TOTAL CASH	$	106,914	$	123,003		$	2,562		$	53,024
4.	ACCOUNTS RECEIVABLE (NET)	$	7,763,152	$	1,192,901		$	796,914		$	396,844
5.	INVENTORY			$	0		$	0		$	0
6.	NOTES RECEIVABLE			$	0		$	0		$	0
7.	PREPAID EXPENSES			$	854,169		$	922,938		$	918,310
8.	OTHER (ATTACH LIST)	$	767,230	$	220,181		$	206,609		$	198,605
9.	TOTAL CURRENT ASSETS	$	8,637,296	$	2,390,254		$	1,929,023		$	1,566,783
10.	PROPERTY, PLANT & EQUIPMENT	$	1,146,152	$	2,291,849		$	590,499		$	590,499
11.	LESS: ACCUMULATED DEPRECIATION / DEPLETION	$	0	$	914,056		$	68,892		$	68,892
12.	NET PROPERTY, PLANT & EQUIPMENT	$	1,146,152	$	1,377,793		$	521,607		$	521,607
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		$	2,450,630		$	2,088,390
POSTPETITION LIABILITIES
17.	ACCOUNTS PAYABLE			$	780,571		$	644,197		$	559,716
18.	TAXES PAYABLE			$	27,895		$	16,826		$	16,826
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		$	17,711,751		$	17,501,310
23.	TOTAL POSTPETITION LIABILITIES			$	18,890,478		$	18,372,774		$	18,077,852
PREPETITION LIABILITIES
24.	SECURED DEBT	$	17,206,526	$	1,064,069		$	1,064,069		$	1,064,069
25.	PRIORITY DEBT	$	277,316	$	0		$	0		$	0
26.	UNSECURED DEBT	$	7,503,343	$	7,207,239		$	7,251,717		$	7,310,451
27.	OTHER (ATTACH LIST)			$	0		$	0		$	0
28.	TOTAL PREPETITION LIABILITIES	$	24,987,185	$	8,271,308		$	8,315,786		$	8,374,520
29.	TOTAL LIABILITIES	$	24,987,185	$	27,161,786		$	26,688,560		$	26,452,372
EQUITY
30.	PREPETITION OWNERS’ EQUITY	0		$	(17,803,179	)	$	(17,803,179	)	$	(17,803,179	)
31.	POSTPETITION CUMULATIVE PROFIT OR (LOSS)			$	(5,590,560	)	$	(6,434,751	)	$	(6,560,803	)
32.	DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION)			$	0		$	0		$	0
33.	TOTAL EQUITY	$	0	$	(23,393,739	)	$	(24,237,930	)	$	(24,363,982	)
34.	TOTAL LIABILITIES & OWNERS’ EQUITY	$	24,987,185	$	3,768,047		$	2,450,630		$	2,088,390

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				February 2008					March 2008				TOTAL
REVENUES
1.	GROSS REVENUES	$		(2,029	)	$	(7,194		)		$		(26,914	)	$	(36,137	)
2.	LESS: RETURNS & DISCOUNTS	$		0		$	0				$		0		$	0
3.	NET REVENUE	$	(2,029		)	$	(7,194		)		$		(26,914	)	$	(36,137	)
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	)	$	(7,194		)		$		(26,914	)	$	(36,137	)
OPERATING EXPENSES
9.	OFFICER / INSIDER COMPENSATION	$		0		$	0				$		0		$	0
10.	SELLING & MARKETING	$		0		$	0				$		0		$	0
11.	GENERAL & ADMINISTRATIVE	$		374,955		$	170,444				$		97,375		$	642,774
12.	RENT & LEASE	$		25,309		$	16,814				$		0		$	42,123
13.	OTHER (ATTACH LIST)	$		(119,152	)	$	17,602				$		(834	)	$	(102,384	)
14.	TOTAL OPERATING EXPENSES	$		281,112		$	204,860				$		96,541		$	582,513
15.	INCOME BEFORE NON-OPERATING
	INCOME & EXPENSE	$		(283,141	)	$	(212,054		)		$		(123,455	)	$	(618,650	)
OTHER INCOME & EXPENSES
16.	NON-OPERATING INCOME (ATT. LIST)	$		505		$	110				$		7,088		$	7,703
17.	NON-OPERATING EXPENSE (ATT. LIST)	$		445,711		$	632,247				$		9,360		$	1,087,318
18.	INTEREST EXPENSE	$		0		$	0				$		0		$	0
19.	DEPRECIATION / DEPLETION	$		28,486		$	0				$		0		$	28,486
20.	AMORTIZATION	$		0		$	0				$		0		$	0
21.	OTHER (ATTACH LIST)	$		0		$	0				$		0		$	0
22.	NET OTHER INCOME & EXPENSES	$		473,692		$	632,137				$		2,272		$	1,108,101
REORGANIZATION EXPENSES
23.	PROFESSIONAL FEES	$		0		$	0			$		0			$	0
24.	U.S. TRUSTEE FEES	$		0		$	0			$		325			$	325
25.	OTHER (ATTACH LIST)	$		0		$	0			$		0			$	0
26.	TOTAL REORGANIZATION EXPENSES	$		0		$	0			$		325			$	325
27.	INCOME TAX	$		0		$	0			$		0			$	0
28.	NET PROFIT (LOSS)	$		(756,833	)	$	(844,191	)		$		(126,052		)	$	(1,727,076	)

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

		MONTH			MONTH			MONTH			QUARTER
		January 2008			February 2008			March 2008			TOTAL
CASH RECEIPTS AND DISBURSEMENTS
1.	CASH - BEGINNING OF MONTH	$	68,770		$	123,003		$	2,562		$	68,770
RECEIPTS FROM OPERATIONS
2.	CASH SALES	$	0		$	0		$	0		$	0
COLLECTION OF ACCOUNTS RECEIVABLE
3.	PREPETITION	$	1,205,023		$	567,482		$	164,399		$	1,936,904
4.	POSTPETITION	$	0		$	0		$	0		$	0
5.	TOTAL OPERATING RECEIPTS	$	1,205,023		$	567,482		$	164,399		$	1,936,904
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	)	$	(687,923	)	$	(113,937	)	$	(1,952,650	)
9.	TOTAL NON-OPERATING RECEIPTS	$	(1,150,790	)	$	(687,923	)	$	(113,937	)	$	(1,952,650	)
10.	TOTAL RECEIPTS	$	54,233		$	(120,441	)	$	50,462		$	(15,746	)
11.	TOTAL CASH AVAILABLE	$	123,003		$	2,562		$	53,024		$	53,024
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		$	(120,441	)	$	50,462		$	(15,746	)
33.	CASH - END OF MONTH	$	123,003		$	2,562		$	53,024		$	53,024

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

		SCHEDULE		MONTH			MONTH			MONTH
		AMOUNT		January 2008			February 2008			March 2008
ACCOUNTS RECEIVABLE AGING
1.	0-30			$	(26,011	)	$	43,012		$	19,427
2.	31-60			$	3,644		$	(44,944	)	$	24,645
3.	61-90			$	8,131		$	(245	)	$	(45,664	)
4.	91+			$	1,302,864		$	644,880		$	434,475
5.	TOTAL ACCOUNTS RECEIVABLE	$	7,763,152	$	1,288,628		$	642,703		$	432,883
6.	AMOUNT CONSIDERED UNCOLLECTIBLE	$	0	$	48,193		$	0		$	0
7.	ACCOUNTS RECEIVABLE (NET)	$	7,763,152	$	1,240,435		$	642,703		$	432,883

AGING OF POSTPETITION TAXES AND PAYABLES MONTH:  March 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)	$	16,826		$	0	$	0	$	0	$	16,826
5.	TOTAL TAXES PAYABLE	$	16,826		$	0	$	0	$	0	$	16,826
6.	ACCOUNTS PAYABLE	$	(47,155	)	$	7,844	$	1,762	$	597,265	$	559,716

STATUS OF POSTPETITION TAXES MONTH:  March 2008

			BEGINNING TAX LIABILITY*		AMOUNT WITHHELD AND/ 0R ACCRUED		AMOUNT PAID		ENDING TAX 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.

BANK RECONCILIATIONS	MONTH:			March 2008
	Account #1			Account #2		Account #3
A.  BANK:	Capital One
B.  ACCOUNT NUMBER:	3620477825
C.  PURPOSE (TYPE):	Depository			N/A		N/A		TOTAL
1.  BALANCE PER BANK STATEMENT	$	54,458						$	54,458
2.  ADD: TOTAL DEPOSITS NOT CREDITED	$	0						$	0
3.  SUBTRACT: OUTSTANDING CHECKS	$	0						$	0
4.  OTHER RECONCILING ITEMS	$	(1,434	)					$	(1,434	)
5.  MONTH END BALANCE PER BOOKS	$	53,024		$	0	$	0	$	53,024
6.  NUMBER OF LAST CHECK WRITTEN	None

INVESTMENT ACCOUNTS

BANK, ACCOUNT NAME & NUMBER	DATE OF PURCHASE	TYPE OF INSTRUMENT	PURCHASE PRICE		CURRENT VALUE
7.  N/A
8.
9.
10.
11. TOTAL INVESTMENTS			$	0	$	0
CASH
12. CURRENCY ON HAND					$		0
13. TOTAL CASH - END OF MONTH					$	53,024

	Monthly Operating Report
CASE NAME: Kitty Hawk Ground Inc.	ACCRUAL BASIS-6
	2008

CASE  NUMBER: 07-44537

MONTH: February 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

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.  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: February 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.

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 continued during 3/08

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 POLICY	CARRIER	PERIOD COVERED		PAYMENT AMOUNT & 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	cancelled	$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: February 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)
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 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 Unapplied cash at the end of the reporting cycle, not included on the AR aging, $37,142, and Accrued AR of $1,103
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

	March 2008
ACCRUAL BASIS - 1
8. OTHER (ATTACH LIST)	198,605		Reported
A/R - Clearing	3,187
A/R - Customer Refund	536
A/R - 401(k)	(119	)
A/R - Owner/Operator	0
A/R - Employees	3,488
A/R - Payroll Advance	(102	)
A/R - Other	4,243
Deposits	187,372
	198,605		Detail
	0		Difference
22. OTHER (ATTACH LIST)	17,501,310		Reported
General Accrued AP	735,498
Intercompany Payables	16,771,826
A/P - Clearing	0
Accrued Wages	(5,575	)
Accrued 401(k) contribution	(439	)
	17,501,310		Detail
	0		Difference
ACCRUAL BASIS - 2
13. OTHER OPERATING EXPENSE	(834	)	Reported
Trucking expense	163
Driver Wages	0
Fuel	0
Truck Maintenance	301
Freight Handling Contract Costs	(1,462	)
Equipment Lease	0
Other support	164
	(834	)	Detail
	0		Difference
16. NON-OPERATING INCOME (ATT. LIST)	7,088		Reported
Other Income	0
Gain on sale of asset	5,300
Interest income	1,788
	7,088		Detail
	0		Difference
17. NON-OPERATING EXPENSE (ATT. LIST)	9,360		Reported
Lease rejection accrual	9,360
Other Expense	0
Net Loss on Disposal of Assets	0
	9,360		Detail
	0		Difference
ACCRUAL BASIS - 3
8. OTHER (ATTACH LIST)	(113,937	)	Reported
Transfer to Kitty Hawk, Inc. (Case 07-44536)	(113,937	)
	(113,937	)	Detail
	0		Difference
ACCRUAL BASIS - 4
Aging of Post-petition Taxes	16,826		Reported
Accrued franchise taxes	960
O/O Fuel Tax	35
Fuel Tax	15,831
	16,826		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: March 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	April 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	April 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			MONTH			MONTH
		AMOUNT		January 2008			February 2008			March 2008
ASSETS
1.	UNRESTRICTED CASH	$	901,444	$	23,495		$	2,452		$	37,931
2.	RESTRICTED CASH			$	0		$	0		$	0
3.	TOTAL CASH	$	901,444	$	23,495		$	2,452		$	37,931
4.	ACCOUNTS RECEIVABLE (NET)	$	14,522,323	$	3,717,170		$	(1,981	)	$	(86,462	)
5.	INVENTORY			$	0		$	0		$	0
6.	NOTES RECEIVABLE			$	0		$	0		$	0
7.	PREPAID EXPENSES			$	10,204		$	10,204		$	334
8.	OTHER (ATTACH LIST)	$	129,586	$	56,359		$	51,375		$	51,385
9.	TOTAL CURRENT ASSETS	$	15,553,353	$	3,807,228		$	62,050		$	3,188
10.	PROPERTY, PLANT  & EQUIPMENT	$	511,103	$	155,567		$	155,567		$	155,567
11.	LESS: ACCUMULATED DEPRECIATION / DEPLETION	$	0	$	52,297		$	52,297		$	52,297
12.	NET PROPERTY, PLANT  & EQUIPMENT	$	511,103	$	103,270		$	103,270		$	103,270
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		$	165,320		$	106,458
POSTPETITION LIABILITIES
17.	ACCOUNTS PAYABLE			$	335,328		$	207,657		$	202,308
18.	TAXES PAYABLE			$	21,134		$	31,258		$	39,969
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		$	19,265,501		$	19,285,898
23.	TOTAL POSTPETITION LIABILITIES			$	22,906,939		$	19,504,416		$	19,528,175
PREPETITION LIABILITIES
24.	SECURED DEBT	$	16,684,744	$	136,918		$	136,918		$	136,918
25.	PRIORITY DEBT	$	223,906	$	0		$	0		$	0
26.	UNSECURED DEBT	$	3,562,306	$	4,044,264		$	3,875,071		$	3,941,851
27.	OTHER (ATTACH LIST)			$	0		$	0		$	0
28.	TOTAL PREPETITION LIABILITIES	$	20,470,956	$	4,181,182		$	4,011,989		$	4,078,769
29.	TOTAL LIABILITIES	$	20,470,956	$	27,088,121		$	23,516,405		$	23,606,944
EQUITY
30.	PREPETITION OWNERS’ EQUITY			$	(23,236,677	)	$	(23,236,677	)	$	(23,236,677	)
31.	POSTPETITION CUMULATIVE PROFIT OR (LOSS)			$	59,054		$	(114,408	)	$	(263,809	)
32.	DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION)			$	0		$	0		$	0
33.	TOTAL EQUITY	$	0	$	(23,177,623	)	$	(23,351,085	)	$	(23,500,486	)
34.	TOTAL LIABILITIES  & OWNERS’ EQUITY	$	20,470,956	$	3,910,498		$	165,320		$	106,458

		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			February 2008			March 2008			TOTAL
REVENUES
1.	GROSS REVENUES	$	31,385		$	43		$	(14,601	)	$	16,827
2.	LESS: RETURNS & DISCOUNTS	$	0		$	0		$	0		$	0
3.	NET REVENUE	$	31,385		$	43		$	(14,601	)	$	16,827
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		$	43		$	(14,601	)	$	16,827
OPERATING EXPENSES
9.	OFFICER / INSIDER COMPENSATION	$	0		$	0		$	0		$	0
10.	SELLING  & MARKETING	$	0		$	0		$	0		$	0
11.	GENERAL & ADMINISTRATIVE	$	245,237		$	187,755		$	27,237		$	460,229
12.	RENT  & LEASE	$	85,000		$	4,966		$	205		$	90,171
13.	OTHER (ATTACH LIST)	$	(8,412	)	$	(19,216	)	$	107,033		$	79,405
14.	TOTAL OPERATING EXPENSES	$	321,825		$	173,505		$	134,475		$	629,805
15.	INCOME BEFORE NON-OPERATING INCOME & EXPENSE	$	(290,440	)	$	(173,462	)	$	(149,076	)	$	(612,978	)
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		$	325		$	325
25.	OTHER (ATTACH LIST)	$	0		$	0		$	0		$	0
26.	TOTAL REORGANIZATION EXPENSES	$	0		$	0		$	325		$	325
27.	INCOME TAX	$	0		$	0		$	0		$	0
28.	NET PROFIT (LOSS)	$	2,675,831		$	(173,462	)	$	(149,401	)	$	2,352,968

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

		MONTH			MONTH			MONTH			QUARTER
		January 2008			February 2008			March 2008			TOTAL
CASH RECEIPTS AND DISBURSEMENTS
1.	CASH - BEGINNING OF MONTH	$	68,445		$	23,495		$	2,452		$	68,445
RECEIPTS FROM OPERATIONS
2.	CASH SALES	$	0		$	0		$	0		$	0
COLLECTION OF ACCOUNTS RECEIVABLE
3.	PREPETITION	$	802,171		$	300,739		$	108,003		$	1,210,913
4.	POSTPETITION	$	0		$	0		$	0		$	0
5.	TOTAL OPERATING RECEIPTS	$	802,171		$	300,739		$	108,003		$	1,210,913
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	)	$	(316,034	)	$	(68,883	)	$	(1,226,159	)
9.	TOTAL NON-OPERATING RECEIPTS	$	(841,242	)	$	(316,034	)	$	(68,883	)	$	(1,226,159	)
10.	TOTAL RECEIPTS	$	(39,071	)	$	(15,295	)	$	39,120		$	(15,246	)
11.	TOTAL CASH AVAILABLE	$	29,374		$	8,200		$	41,572		$	53,199
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		$	5,748		$	3,641		$	15,268
26.	TOTAL OPERATING DISBURSEMENTS	$	5,879		$	5,748		$	3,641		$	15,268
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		$	5,748		$	3,641		$	15,268
32.	NET CASH FLOW	$	(44,950	)	$	(21,043	)	$	35,479		$	(30,514	)
33.	CASH - END OF MONTH	$	23,495		$	2,452		$	37,931		$	37,931

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

		SCHEDULE		MONTH			MONTH			MONTH
		AMOUNT		January 2008			February 2008			March 2008
ACCOUNTS RECEIVABLE AGING
1.	0-30			$	(35,549	)	$	(1,794	)	$	(4,528	)
2.	31-60			$	(46,035	)	$	(19,906	)	$	(1,021	)
3.	61-90			$	(81,009	)	$	(28,172	)	$	(14,988	)
4.	91+			$	403,678		$	47,696		$	(66,375	)
5.	TOTAL ACCOUNTS RECEIVABLE	$	14,522,323	$	241,085		$	(2,176	)	$	(86,912	)
6.	AMOUNT CONSIDERED UNCOLLECTIBLE	$	0	$	0		$	0
7.	ACCOUNTS RECEIVABLE (NET)	$	14,522,323	$	241,085		$	(2,176	)	$	(86,912	)

AGING OF POSTPETITION TAXES AND PAYABLES MONTH: March 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)	$	39,969		$	0	$	0	$	0	$	39,969
5.	TOTAL TAXES PAYABLE	$	39,969		$	0	$	0	$	0	$	39,969
6.	ACCOUNTS PAYABLE	$	(20,337	)	$	849	$	4,201	$	217,595	$	202,308

STATUS OF POSTPETITION TAXES MONTH: March 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 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.

BANK RECONCILIATIONS

MONTH: March 2008

		Account #1		Account #2		Account #3		TOTAL
A.	BANK:	Capital One
B.	ACCOUNT NUMBER:	3620477841
C.	PURPOSE (TYPE):	Depository		N/A		N/A
1.	BALANCE PER BANK STATEMENT	$	36,724					$	36,724
2.	ADD: TOTAL DEPOSITS NOT CREDITED	$	0					$	0
3.	SUBTRACT: OUTSTANDING CHECKS	$	0					$	0
4.	OTHER RECONCILING ITEMS	$	1,207					$	1,207
5.	MONTH END BALANCE PER BOOKS	$	37,931	$	0	$	0	$	37,931
6.	NUMBER OF LAST CHECK WRITTEN	None

INVESTMENT ACCOUNTS

		DATE OF	TYPE OF	PURCHASE		CURRENT
BANK, ACCOUNT NAME & NUMBER		PURCHASE	INSTRUMENT	PRICE		VALUE
7.	N/A
8.
9.
10.
11.	TOTAL INVESTMENTS			$	0	$	0
CASH
12.	CURRENCY ON HAND					$	0
13.	TOTAL CASH - END OF MONTH					$	37,931

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

	MONTH:	March 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, lease cancelled 2/08	$	1,048	$	0	$	1,048
4.	US Bank, cancelled 1/08	$	168,775	$	0	$	0
5.	Other facility leases cancelled 11/07
6.	TOTAL	$	171,926	$	0	$	5,254

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

MONTH:	March 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.

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 continued during 3/08 Additionally, several creditors have drawn on outstanding letters of credit; company attempting to reconcile activity; therefore, no payments were made on post-petition basis, primarily airport landing, parking and rental fees.

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

MONTH:  March 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 by $450 due to on-going reconciliation item.
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

	March 2008
ACCRUAL BASIS - 1
8. OTHER (ATTACH LIST)	51,385		Reported
A/R Employees	988
A/R Other	22,831
Deposits	27,794
A/R - 401(k) loan	(228	)
	51,385		Detail
	0		Difference

22. OTHER (ATTACH LIST)	19,285,898	Reported
Intercompany Payables	19,209,510
Accrued Wages	16,440
Accrued 401(k)	2,114
General Accrued AP	57,834
	19,285,898	Detail
	0	Difference

ACCRUAL BASIS - 2
13. OTHER OPERATING EXPENSE	107,033			Reported
Chartered Airline Expense (10/07 not recorded)	106,937
Allocation from Ground	0
Freight Handling Wages	0
Freight Handling Contractors	0
GSE Wages	0
Support Costs	86
Fuel	10
	107,033			Detail
	0			Difference
ACCRUAL BASIS - 3
8. OTHER (ATTACH LIST)	(68,883	)	Reported
Transfer to Inc (#07-44536)	(68,883	)
Transfer to Aircargo (#07-44540)	0
	(68,883	)	Detail
	0		Difference

25. OTHER (ATTACH LIST)	3,641	Reported
Bank Charges	3,641
Misc - Petty Cash usage
	3,641	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:  March 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	April 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	April 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			MONTH			MONTH
		AMOUNT		January 2008			February 2008			March 2008
ASSETS
1.	UNRESTRICTED CASH	$	2,913	$	142,416		$	199,455		$	400,376
2.	RESTRICTED CASH			$	0		$	0		$	0
3.	TOTAL CASH	$	2,913	$	142,416		$	199,455		$	400,376
4.	ACCOUNTS RECEIVABLE (NET)	$	428,572	$	623,545		$	340,721		$	2,459,492
5.	INVENTORY	$	1,807,835	$	1,355,242		$	1,355,242		$	216,535
6.	NOTES RECEIVABLE	$	0	$	0		$	0		$	0
7.	PREPAID EXPENSES	$	538,000	$	572,538		$	545,897		$	541,982
8.	OTHER (ATTACH LIST)	$	2,114,882	$	205,518		$	202,463		$	205,999
9.	TOTAL CURRENT ASSETS	$	4,892,202	$	2,899,259		$	2,643,778		$	3,824,384
10.	PROPERTY, PLANT & EQUIPMENT	$	359,058	$	1,181,826		$	1,166,223		$	0
11.	LESS: ACCUMULATED DEPRECIATION / DEPLETION	$	0	$	927,686		$	927,446		$	0
12.	NET PROPERTY, PLANT & EQUIPMENT	$	359,058	$	254,140		$	238,777		$	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		$	6,852,889		$	6,381,177
16.	TOTAL ASSETS	$	5,251,260	$	10,012,401		$	9,735,444		$	10,205,561
POSTPETITION LIABILITIES
17.	ACCOUNTS PAYABLE			$	430,867		$	465,264		$	450,889
18.	TAXES PAYABLE			$	93,039		$	115,821		$	140,257
19.	NOTES PAYABLE			$	0		$	0		$	0
20.	PROFESSIONAL FEES			$	0		$	0		$	0
21.	SECURED DEBT			$	0		$	0		$	0
22.	OTHER (ATTACH LIST)			$	985,594		$	843,827		$	820,463
23.	TOTAL POSTPETITION LIABILITIES			$	1,509,500		$	1,424,912		$	1,411,609
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		$	6,340,059		$	6,295,907
27.	OTHER (ATTACH LIST)			$	0		$	0		$	0
28.	TOTAL PREPETITION LIABILITIES	$	22,170,447	$	6,324,435		$	6,340,059		$	6,295,907
29.	TOTAL LIABILITIES	$	22,170,447	$	7,833,935		$	7,764,971		$	7,707,516
EQUITY
30.	PREPETITION OWNERS’ EQUITY			$	3,848,021		$	3,848,021		$	3,848,021
31.	POSTPETITION CUMULATIVE PROFIT OR (LOSS)			$	(1,669,555	)	$	(1,877,548	)	$	(1,349,976	)
32.	DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION)			$	0		$	0		$	0
33.	TOTAL EQUITY	$	0	$	2,178,466		$	1,970,473		$	2,498,045
34.	TOTAL LIABILITIES  & OWNERS’ EQUITY	$	22,170,447	$	10,012,401		$	9,735,444		$	10,205,561

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

INCOME STATEMENT

		MONTH			MONTH			MONTH			QUARTER
		January 2008			February 2008			March 2008			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		$	36,923		$	39,142		$	100,681
10.	SELLING & MARKETING	$	0		$	0		$	0		$	0
11.	GENERAL & ADMINISTRATIVE	$	115,042		$	115,591		$	166,092		$	396,725
12.	RENT & LEASE	$	23,462		$	630		$	268		$	24,360
13.	OTHER (ATTACH LIST)	$	236,341		$	45,827		$	10,505		$	292,673
14.	TOTAL OPERATING EXPENSES	$	399,461		$	198,971		$	216,007		$	814,439
15.	INCOME BEFORE NON-OPERATING INCOME & EXPENSE	$	(362,561)		$	(198,971	)	$	(216,007	)	$	(777,539	)
OTHER INCOME & EXPENSES
16.	NON-OPERATING INCOME (ATT. LIST)	$	112,010		$	3,566		$	744,229		$	859,805
17.	NON-OPERATING EXPENSE (ATT. LIST)	$	0		$	0		$	0		$	0
18.	INTEREST EXPENSE	$	0		$	0		$	0		$	0
19.	DEPRECIATION / DEPLETION	$	12,661		$	12,588		$	0		$	25,249
20.	AMORTIZATION	$	0		$	0		$	0		$	0
21.	OTHER (ATTACH LIST)	$	0		$	0		$	0		$	0
22.	NET OTHER INCOME & EXPENSES	$	(99,349	)	$	9,022		$	(744,229	)	$	(834,556	)
REORGANIZATION EXPENSES
23.	PROFESSIONAL FEES	$	0		$	0		$	0		$	0
24.	U.S. TRUSTEE FEES	$	0		$	0		$	650		$	650
25.	OTHER (ATTACH LIST)	$	0		$	0		$	0		$	0
26.	TOTAL REORGANIZATION EXPENSES	$	0		$	0		$	650		$	650
27.	INCOME TAX	$	0		$	0		$	0		$	0
28.	NET PROFIT (LOSS)	$	(263,212	)	$	(207,993	)	$	527,572		$	56,367

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

		MONTH			MONTH			MONTH		QUARTER
		January 2008			February 2008			March 2008		TOTAL
CASH RECEIPTS AND DISBURSEMENTS
1.	CASH - BEGINNING OF MONTH	$	564,506		$	142,416		$	199,455	$	564,506
RECEIPTS FROM OPERATIONS
2.	CASH SALES	$	0		$	0		$	0	$	0
COLLECTION OF ACCOUNTS RECEIVABLE
3.	PREPETITION	$	182,283		$	176,881		$	0	$	359,164
4.	POSTPETITION	$	0		$	0		$	0	$	0
5.	TOTAL OPERATING RECEIPTS	$	182,283		$	176,881		$	0	$	359,164
NON - OPERATING RECEIPTS
6.	LOANS & ADVANCES (ATTACH LIST)	$	0		$	0		$	0	$	0
7.	SALE OF ASSETS	$	23,234		$	0		$	200,486	$	223,720
8.	OTHER (ATTACH LIST)	$	(612,074	)	$	(119,467	)	$	435	$	(731,106	)
9.	TOTAL NON-OPERATING RECEIPTS	$	(588,840	)	$	(119,467	)	$	200,921	$	(507,386	)
10.	TOTAL RECEIPTS	$	(406,557	)	$	57,414		$	200,921	$	(148,222	)
11.	TOTAL CASH AVAILABLE	$	157,949		$	199,830		$	400,376	$	416,284
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		$	375		$	0	$	15,908
26.	TOTAL OPERATING DISBURSEMENTS	$	15,533		$	375		$	0	$	15,908
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		$	375		$	0	$	15,908
32.	NET CASH FLOW	$	(422,090	)	$	57,039		$	200,921	$	(164,130	)
33.	CASH - END OF MONTH	$	142,416		$	199,455		$	400,376	$	400,376

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

		SCHEDULE		MONTH		MONTH		MONTH
		AMOUNT		January 2008		February 2008		March 2008
ACCOUNTS RECEIVABLE AGING
1.	0-30			$	151,830	$	0	$	0
2.	31-60			$	41,823	$	44,969	$	0
3.	61-90			$	21,483	$	2,012	$	44,969
4.	91+			$	301,988	$	293,471	$	295,483
5.	TOTAL ACCOUNTS RECEIVABLE	$	428,572	$	517,124	$	340,452	$	340,452
6.	AMOUNT CONSIDERED UNCOLLECTIBLE	$	0	$	0	$	0	$	0
7.	ACCOUNTS RECEIVABLE (NET)	$	428,572	$	517,124	$	340,452	$	340,452

AGING OF POSTPETITION TAXES AND PAYABLES MONTH: March 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)	$	140,257	$	0	$	0	$	0	$	140,257
5.	TOTAL TAXES PAYABLE	$	0	$	0	$	0	$	0	$	140,257
6.	ACCOUNTS PAYABLE	$	(24,474)	$	39,174	$	131,618	$	304,571	$	450,889

STATUS OF POSTPETITION TAXES MONTH: March 2008

		BEGINNING		AMOUNT						ENDING
		TAX		WITHHELD AND/			AMOUNT			TAX
		LIABILITY*		OR ACCRUED			PAID			LIABILITY
FEDERAL
1.	WITHHOLDING**	$	0	$	13,508		$	13,508		$	0
2.	FICA-EMPLOYEE**	$	0	$	6,285		$	6,285		$	0
3.	FICA-EMPLOYER**	$	0	$	6,285		$	6,285		$	0
4.	UNEMPLOYMENT	$	0	$	90		$	90		$	0
5.	INCOME	$	0	$	0		$	0		$	0
6.	OTHER (ATTACH LIST)	$	0	$	0		$	0		$	0
7.	TOTAL FEDERAL TAXES	$	0	$	26,168		$	26,168		$	0
STATE AND LOCAL
8.	WITHHOLDING	$	0	$	1,155		$	1,155		$	0
9.	SALES	$	0	$	0		$	0		$	0
10.	EXCISE	$	0	$	0		$	0		$	0
11.	UNEMPLOYMENT	$	0	$	(2,133	)	$	(2,133	)	$	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	$	(978	)	$	(978	)	$	0
16.	TOTAL TAXES	$	0	$	25,190		$	25,190		$	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.

BANK RECONCILIATIONS MONTH: March 2008

		Account #1		Account #2		Account #3
A.	BANK:	Capital One		JP Morgan Chase		Capital One
B.	ACCOUNT NUMBER:	3620477833		100130152		3620562563
C.	PURPOSE (TYPE):	Depository		Operating		Asset Sales		TOTAL
1.	BALANCE PER BANK STATEMENT	$	0	$	0	$	0	$	0
2.	ADD: TOTAL DEPOSITS NOT CREDITED	$	0	$	0	$	0	$	0
3.	SUBTRACT: OUTSTANDING CHECKS	$	0	$	0	$	0	$	0
4.	OTHER RECONCILING ITEMS	$	0	$	0	$	0	$	0
5.	MONTH END BALANCE PER BOOKS	$	0	$	0	$	0	$	0
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	3/31/2008	Overnight Sweep	$	400,376		$		400,376
8.
9.
10.
11.	TOTAL INVESTMENTS			$	400,376		$		400,376
CASH
12.	CURRENCY ON HAND					$		0
13.	TOTAL CASH - END OF MONTH					$		400,376

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

MONTH: March 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	$	23,846	$	104,691
2.	Danny Clifton	Salary, Expense Reports	$	0	$	22,418
3.	Mark Luman	Salary, Expense Reports	$	15,296	$	59,598
4.
5.
6.	TOTAL PAYMENTS TO INSIDERS		$	39,142	$	186,707

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.	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: March 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 i/a/w de minimis asset sale motion approved by the Court and Court approved auction 3/18 - 3/20

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 continued during 3/08

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

MONTH: March 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)
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 Accrued AR of $2,119,040, net proceeds from DFW auction - received in 4/08

Case Name:	Kitty Hawk Aircargo, Inc.
Case Number:	07-44539

Details of Other Items

	March 2008
ACCRUAL BASIS - 1
8. OTHER (ATTACH LIST)	205,999		Reported
AR 401(k)	(833	)
AR Employees	(1,604	)
Fuel intoplane suspense	(32,255	)
Deposits	240,691
	205,999		Detail
	0		Difference
15. OTHER (ATTACH LIST)	6,381,177		Reported
Intercompany receivable	6,381,177
	6,381,177		Detail
	0		Difference
22. OTHER (ATTACH LIST)	820,463		Reported
Payroll clearing	(3,394	)
General Accrued AP	827,918
Accrued Union Dues	(13,479	)
Accrued wages	9,490
Accrued 401(k)	(72	)
Accrued Health Savings Plan	0
	820,463		Detail
	0		Difference
ACCRUAL BASIS - 2
13. OTHER OPERATING EXPENSE	10,505		Reported
Crewmember wages	(72	)
Crewmember travel	(18,894	)
Training	0
Flight Operations Admin wages & travel	21,645
Flight Planning Expense	0
Aircraft Insurance	0
Ground Operating Expense	0
Fuel	0
Maintenance wages & travel	7,602
Support costs	161
Contract labor	46
Parts Related Expense	17
Contractual Maintenance agreements	0
Allocation to Cargo	0
On demand charter expense	0
	10,505		Detail
	0		Difference
16. NON-OPERATING INCOME (ATT. LIST)	744,229		Reported
Interest income	436
Gain on sale of assets	743,793
	744,229		Detail
	0		Difference
ACCRUAL BASIS - 3
8. OTHER (ATTACH LIST)	435		Reported
Transfer to Inc (#07-44536)	0
Transfer from Inc (#07-44536)	0
Interest Income	435
	435		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: MARCH 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	April 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	April 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			MONTH			MONTH
		AMOUNT		January 2008			February 2008			March 2008
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		$	325
23.	TOTAL POSTPETITION LIABILITIES			$	0		$	0		$	325
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		$	250		$	250
28.	TOTAL PREPETITION LIABILITIES	$	16,684,744	$	250		$	250		$	250
29.	TOTAL LIABILITIES	$	16,684,744	$	250		$	250		$	575
EQUITY
30.	PREPETITION OWNERS’ EQUITY	0		$	0		$	0		$	0
31.	POSTPETITION CUMULATIVE PROFIT OR (LOSS)			$	(250	)	$	(250	)	$	(575	)
32.	DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION)			$	0		$	0		$	0
33.	TOTAL EQUITY	$	0	$	(250	)	$	(250	)	$	(575	)
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		February 2008		March 2008			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	$	325		$	325
25.	OTHER (ATTACH LIST)	$	0	$	0	$	0		$	0
26.	TOTAL REORGANIZATION EXPENSES	$	0	$	0	$	325		$	325
27.	INCOME TAX	$	0	$	0	$	0
28.	NET PROFIT (LOSS)	$	0	$	0	$	(325	)	$	(325	)

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

CASE NUMBER:  07-44540

		MONTH		MONTH		MONTH		QUARTER
		January 2008		February 2008		March 2008		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		February 2008		March 2008
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	$	0
7.	ACCOUNTS RECEIVABLE (NET)	$	0	$	0	$	0	$	0

AGING OF POSTPETITION TAXES AND PAYABLES MONTH: March 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: March 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:  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.

BANK RECONCILIATIONS MONTH: March 2008

		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	TYPE OF	PURCHASE		CURRENT
BANK, ACCOUNT NAME & NUMBER		PURCHASE	INSTRUMENT	PRICE		VALUE
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: March 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: March 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

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: March 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

		March 2008
ACCRUAL BASIS - 1
22. OTHER (ATTACH LIST)		325	Reported
	Accrued AP for payable to US Trustee	325
		325	Detail
		0	Difference
27. OTHER (ATTACH LIST)		250	Reported
	Intercompany Payable to Kitty Hawk, Inc. (Case No. 07-44536)	250
		250	Detail
		0	Difference