UNITED STATES
                  SECURITIES AND EXCHANGE COMMISSION

                       WASHINGTON, D.C. 20549

                            FORM 10-Q

            Quarterly Report Pursuant To Section 13 or 15(d)
              of The Securities Exchange Act of 1934

For The Quarter Ended March 31, 1997     Commission file number 1-19773


                         OTR EXPRESS, INC.
          (Exact name of registrant as specified in its charter)

                  Kansas                          48-0993128
       (State or other jurisdiction of            (IRS Employer
        incorporation of organization)            Identification No.)

     804 N. Meadowbrook Drive
    PO Box 2819, Olathe, Kansas                   66063-0819 
    (Address of principal executive offices)      (Zip Code)

   Registrant's telephone number, including area code (913) 829-1616



Former name, former address and former fiscal year, if changed since last
report.


       Indicate by check mark whether the registrant (1) has filed
     all reports required to be filed by Section 13 or 15(d) of the
     Securities Exchange Act of 1934 during the preceding 12 months (or
     for such shorter period that the registrant was required to file
     such reports), and (2) has been subject to such filing
     requirements for the past 90 days.

     (1) Yes      X           No         (2)  Yes       X         No      


                               1,840,515
    (Number of shares of common stock outstanding as of April 30, 1997)
<PAGE>
PART 1 FINANCIAL INFORMATION
<TABLE>
ITEM 1. FINANCIAL STATEMENTS

OTR EXPRESS, INC.
BALANCE SHEETS
<CAPTION>
        
                                    March 31 1997           December 31 1996
                                    (Unaudited)
<S>                                 <C>                     <C>    
ASSETS        
CURRENT ASSETS        
  Cash                              $      70,566            $      43,107
  Accounts receivable, freight          6,363,878                6,139,335
  Accounts receivable, other              434,811                  356,027
  Inventory                               584,197                  590,165
  Prepaid expenses and other            1,042,219                  552,426
  TOTAL CURRENT ASSETS                  8,495,671                7,681,060
        
PROPERTY AND EQUIPMENT                 43,862,743               42,894,525
        
  TOTAL ASSETS                      $  52,358,414            $  50,575,585
        
LIABILITIES AND STOCKHOLDERS' EQUITY        
CURRENT LIABILITIES        
  Bank note payable                 $   2,526,000            $   1,389,000
  Accounts payable, trade               1,583,263                1,396,760
  Accrued payroll and taxes             1,129,004                  823,811
  Other accrued expenses                1,147,576                1,180,900
  Current portion of long-term debt    14,275,349               14,361,651
  TOTAL CURRENT LIABILITIES            20,661,192               19,152,122
        
LONG-TERM DEBT                         21,637,220               21,019,354
DEFERRED INCOME TAXES                   1,459,295                1,599,014
        
STOCKHOLDERS' EQUITY                    8,600,707                8,805,095
        
  TOTAL LIABILITIES AND
  STOCKHOLDERS' EQUITY              $  52,358,414            $  50,575,585
        
</TABLE>
<PAGE>
<TABLE>           
OTR EXPRESS, INC.

STATEMENTS OF OPERATIONS
<CAPTION>


                                        Three  Months Ended March 31

(Unaudited)                             1997                1996
<S>                                     <C>                 <C>
                
OPERATING REVENUE                
  Freight revenue                        $  12,872,476       $  12,315,612
  Brokerage revenue                            958,515             716,737
  Total operating revenue                   13,830,991          13,032,349
                
OPERATING EXPENSES                
  Salaries, wages and benefits               5,523,603           5,403,532
  Purchased transportation                     940,411             646,799
  Fuel                                       1,824,402           1,639,289
  Maintenance                                  855,824             804,706
  Depreciation                               1,716,390           1,698,960
  Insurance and claims                         316,518             391,525
  Taxes and licenses                         1,454,675           1,522,751
  Supplies and other                           806,734             623,002
  Total operating expenses                  13,438,557          12,730,564
                  
Operating income                               392,434             301,785
Interest expense                               720,642             690,786
                
Income (loss) before income taxes             (328,208)           (389,001)
Income tax expense (benefit)                  (124,719)           (167,745)
                
Net income (loss)                          $  (203,489)        $  (221,256)
                
Average shares outstanding                   1,841,205           1,836,048
                
Net income (loss) per share                $     (0.11)        $     (0.12)
</TABLE>
<PAGE>
<TABLE>
OTR EXPRESS, INC.

STATEMENTS OF CASH FLOWS
<CAPTION>


                                             Three Months Ended March 31
(Unaudited)                                  1997             1996
<S>                                          <C>              <C>
        
OPERATING ACTIVITIES        
NET CASH PROVIDED BY OPERATING ACTIVITIES    $  1,053,151     $  601,848
        
INVESTING ACTIVITIES        
Acquisition of property and equipment          (4,044,607)      (263,989)
Proceeds from disposition of property
and equipment                                   1,360,000        117,000
  NET CASH USED IN INVESTING ACTIVITIES        (2,684,607)      (146,989)
        
FINANCING ACTIVITIES        
Proceeds from issuance of long-term debt        7,291,017      3,957,000
Repayments of long-term debt                   (6,759,453)    (4,021,463)
Net increase (decrease) in bank note payable    1,137,000       (390,000)
Other                                              (9,649)        (6,999)
   NET CASH PROVIDED BY (USED IN) FINANCING         
   ACTIVITIES                                   1,658,915       (461,462)
        
  NET INCREASE (DECREASE) IN CASH                  27,459         (6,603)
  CASH, BEGINNING OF PERIOD                        43,107         36,101
        
  CASH, END OF PERIOD                         $    70,566    $    29,498
        
        
SUPPLEMENTAL DISCLOSURE OF CASH FLOW         
INFORMATION        
  Cash paid for interest                     $    720,436    $   693,121
  Cash received for income taxes                        -        (65,025)
        
</TABLE>
<PAGE>      
        
        
        OTR EXPRESS, INC. 
NOTES TO FINANCIAL STATEMENTS 
(Unaudited)



NOTE 1 - FINANCIAL STATEMENT PRESENTATION
The financial statements included herein have been prepared by
management, without audit, pursuant to the rules and regulations
of the Securities and Exchange Commission.  Certain information
and footnote disclosures normally included in financial statements
prepared in accordance with generally accepted accounting
principles have been condensed or omitted pursuant to such rules
and regulations, although management believes that the disclosures
are adequate to enable a reasonable understanding of the
information presented.  In the opinion of management, all
adjustments considered necessary for a fair presentation of the
financial statements have been included.  For further information,
refer to the Company's financial statements and footnotes thereto
included in the Annual Report and Form 10-K for the year ended
December 31, 1996.

NOTE 2 - LONG-TERM DEBT AND COMMITMENTS
During the three months ended March 31, 1997, the Company financed
the purchase of revenue equipment through the issuance of long-
term debt totaling $4,033,000.  This debt bears interest at an
effective rate of 8.00%.  The Company refinanced encumbered
revenue equipment through the issuance of long-term debt totaling
$3,300,000.  This debt bears interest at an effective rate of
8.66%.

At March 31, 1997, the Company had purchase and finance
commitments outstanding for additional revenue equipment totaling
$11,897,000.   The Company anticipates receiving proceeds from the
sale or trade-in of 116 tractors and 190 trailers in association
with these commitments.

NOTE 3 - EARNINGS PER SHARE
In February 1997, the Financial Accounting Standards Board issued
Statement No. 128  ("FAS 128"), "Earnings Per Share", which
simplifies the computation of earnings per share.  FAS 128 is
effective for financial statements issued for periods ending after
December 15, 1997 and requires restatement for all prior period
earnings per share data presented.  The Company will be required
to adopt FAS No. 128 in the fourth quarter of 1997, but does not
expect that adoption will have a material effect on earnings per
share.
<PAGE>

ITEM 2  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
  OPERATIONS AND FINANCIAL CONDITION

RESULTS OF OPERATIONS
1st Quarter 1997 v. 1996
  Operating Revenue.  Operating revenue improved by 6.1% to
$13.8 million in the first quarter ended March 31, 1997 from $13.0
million in 1996.  Freight revenue increased by 4.5%  and brokerage
revenue increased by 33.7%.  
  Freight revenue improved primarily due to an increase in the
rate per mile to $1.012 in the first quarter of 1997 compared to
$0.979 in 1996.  The higher rate is primarily a result of a higher
level of shipper miles in 1997 compared to 1996.  The average
number of tractors in service were 506 in the first quarter of
1997 compared to 502 in 1996.  Average miles per truck per week
increased to 1,974 from 1,955.  The Company's empty mile percent
increased to 7.3% from 6.9% in 1996.
  Brokerage revenue increased to 6.9% of revenue from 5.5% due to
an increase in the Company's customer base and additional
personnel in the brokerage division. 

  Operating Expenses.  The operating ratio (total operating
expenses as a percent of operating revenue) improved to 97.2% in
the first quarter of 1997 compared to 97.7% in 1996.
  Salaries, wages and benefits decreased to 39.9% of revenue in
1997 from 41.5% in 1996.  The decrease has resulted from increased
revenue rates per mile and relatively stable driver wage rates per
mile.
  Purchased transportation represents payments to other trucklines
for hauling loads contracted through the Company's freight
brokerage division.  Purchased transportation increased to 6.8% of
revenue in 1997 compared to 5.0% in 1996 because of the increase
in brokerage revenue.
  Fuel was 13.2% of revenue in 1997 compared to 12.6% in 1996. 
The Company's blended average cost per gallon was $1.212 in 1997
compared to $1.101 in 1996, as a result of higher diesel fuel
prices nationwide in the first quarter of 1997.
  Depreciation as a percent of revenue decreased to 12.4% in 1997
from 13.0% in 1996 as a result of higher revenue.
  Taxes and licenses as a percent of revenue decreased from 11.7%
to 10.5% as a result of the increased revenue rate per mile.
  Supplies and other expenses were 5.8% of revenue in 1997
compared to 4.8% in 1996 as a result of an increase in advertising
for drivers and monthly service costs of on-board satellite
communications, which were installed in all of the Company's
tractors in August 1996.
<PAGE>
  Interest Expense.  Interest expense declined to 5.2% of
revenue in 1997 from 5.3% in 1996.

  Net Income (Loss).  The Company reported a net loss of
$203,000, or $0.11 per share, for the first quarter of 1997
compared to a net loss of $221,000, or $0.12 per share, in 1996. 
The effective income tax rate was 37.9% in 1997 compared to 43.1%
in 1996.

LIQUIDITY AND CAPITAL RESOURCES
  The growth of the Company's business has required significant
investments in new revenue equipment, which has been acquired
primarily through secured borrowings.  Capital expenditures for
revenue equipment purchases totaled $4,045,000 for the three
months ended March 31, 1997. The Company received $1,360,000 in
proceeds from the disposition of revenue equipment. The Company
has outstanding purchase commitments for 100 replacement tractors
at a cost of $8.0 million and 190 replacement trailers at a cost
of $3.9 million.  The Company has finance commitments for the
equipment purchases at fixed interest rates.  The Company's other
capital expenditures will be financed through internally generated
funds and secured borrowings.
  Historically, the Company has obtained loans for revenue
equipment which are of shorter duration (three years for trailers,
four years for tractors) than the economic useful lives of the
equipment.  While such loans have current maturities that tend to
create working capital deficits that could adversely affect cash
flows, management believes that these factors are mitigated by the
more attractive interest rates and terms available on these
shorter maturities.   This financing practice has been a
significant cause of the working capital deficit which has existed
since the Company's inception.  However, in 1997 the Company began
financing tractors over fifty-four months to reflect a longer
holding period for the tractors.  Trailers will be financed over
sixty months.  This method of financing can be expected to
continue to produce working capital deficits in the future.  The
Company's working capital deficit at March 31, 1997 was $12.2
million.  Primarily due to the Company's equity position and the
potential for refinancing of both unencumbered and encumbered
assets, working capital deficits historically have not been a
barrier to the Company's ability to borrow funds for operations
and expansion.
  As of March 31, 1997, the Company had a credit line of $5.5
million with its primary lending bank. The line bears interest at
the prime lending rate, expires May 31, 1997 and is secured by
accounts receivable of the Company.  The Company had borrowings of
$2.5 million under this line at March 31, 1997.  A total of $1.6
million of the available credit line was committed for letters of
credit issued by the bank.
  In management's opinion, the Company has adequate liquidity for
the foreseeable future based upon funds expected to be generated
from operations, the availability of equity in the Company's
assets and the Company's ability to obtain secured equipment
financing. 
<PAGE>
PART II OTHER INFORMATION

ITEM 1 - Legal Proceedings......................................*
ITEM 2 - Changes in Securities..................................*
ITEM 3 - Defaults Upon Senior Securities........................*
ITEM 4 - Submission of Matters to a Vote of Security Holders....*
ITEM 5 - Other Information......................................*

  *  No information submitted under this caption.

ITEM 6 - Exhibits and Reports on Form 8-K
  The Company did not file any reports on Form 8-K during the
three months ended March 31, 1997.

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 thereunto duly authorized.

                                                  OTR EXPRESS, INC.      
                                                  (Registrant)


Date:           May 9, 1997                       /s/   William P. Ward    
                                                  By:  William P. Ward
                                                  Chairman of the Board,
                                                  President and Principal
                                                  Executive Officer

Date:           May 9, 1997                       /s/   Steven W. Ruben    
                                                  By:  Steven W. Ruben
                                                  Principal Financial Officer
                                                  and Principal Accounting
                                                  Officer