SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C.  20549

                                    FORM 10-K

[ X ]    Annual Report Pursuant to Section 13 or 15(d) of the Securities
         Exchange  Act  of  1934

                   For the Fiscal Year Ended December 31, 1999

                                       or

[   ]    Transition  Report  Pursuant  to  Section  13  or  15(d)  of  the
         Securities  Exchange  Act  of  1934

                           Commission File No. 0-15057

                      P.A.M. TRANSPORTATION SERVICES, INC.
             (Exact name of registrant as specified in its charter)

                     Delaware                                    71-0633135
                     --------                                    ----------
         (State or other jurisdiction of                     (I.R.S. Employer
          incorporation or organization)                    Identification No.)

                                Highway 412 West
                                  P.O. Box 188
                           Tontitown, Arkansas 72770
                                 (501) 361-9111
          (Address of principal executive offices, including zip code,
                   and telephone number, including area code)

Securities  registered  pursuant  to  section  12(b)  of  the  Act:  None

Securities  registered pursuant to section 12(g) of the Act:  Common Stock, $.01
par  value

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.
                            Yes  X             No
                                ---              ---
Indicate  by  check mark if disclosure of delinquent filers pursuant to Item 405
of  Regulation  S-K  is  not contained herein, and will not be contained, to the
best  of  the  registrant's  knowledge,  in  definitive  proxy  or  information
statements  incorporated  by  reference  in  Part  III  of this Form 10-K or any
amendment  to  this  Form  10-K.  [  ]

The  aggregate  market  value  of  the  common  stock  of the registrant held by
non-affiliates  of the registrant on March 13, 2000 was $18,874,651.  Solely for
the  purposes  of  this  response,  executive officers, directors and beneficial
owners  of  more  than five percent of the Company's common stock are considered
the  affiliates  of  the  Company  at  that  date.

The  number  of shares outstanding of the issuer's common stock, as of March 13,
2000:  8,439,957  shares  of  $.01  par  value  common  stock.

Certain  statements  contained  in this filing are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995, such
as  statements  relating  to  financial  results  and  plans for future business
development  activities,  and  are  thus  prospective.  Such  forward-looking
statements  are  subject  to  risks, uncertainties and other factors which could
cause  actual  results  to  differ  materially  from future results expressed or
implied  by  such  forward-looking statements. Potential risks and uncertainties
include, but are not limited to, general economic conditions, competition in the
transportation  industry  and  other uncertainties detailed from time to time in
the  Company's  Securities  and  Exchange  Commission  filings.

                                     PART I

ITEM 1. BUSINESS
----------------

     P.A.M. Transportation Services, Inc. (the "Company"), operating through its
wholly-owned  subsidiaries,  is  an  irregular  route, common and contract motor
carrier  authorized  to transport general commodities throughout the continental
United  States  and  the  Canadian  provinces of Ontario and Quebec, pursuant to
operating  authorities  granted  by  the  former  Interstate Commerce Commission
("ICC"),  various  state  regulatory  agencies and Canadian regulatory agencies.
Under  its operating authorities, the Company may transport all types of freight
(except  household goods, commodities in bulk and certain explosives) intrastate
within  any  state, and from any point in the continental United States, Ontario
or  Quebec  to any other point in the continental United States or in Ontario or
Quebec  over  any  route  selected  by  the Company.  The Company transports dry
freight  commodities  ("freight")  in  48-foot  and  53-foot  long,  high  cube
conventional  and  specialized  freight vans ("trailers").  The freight consists
primarily  of  automotive  parts,  consumer  goods, such as general retail store
merchandise  and products from the manufacturing sector, such as heating and air
conditioning  units.  All  freight  is  transported  as  truckload  quantities.

     The  Company  is a holding company organized under the laws of the State of
Delaware  in  June  1986  and  conducts  its operations through its wholly-owned
subsidiaries,  P.A.M.  Transport,  Inc.  ("P.A.M.  Transport"),  P.A.M.  Special
Services,  Inc., T.T.X., Inc., P.A.M. Dedicated Services, Inc., P.A.M. Logistics
Services,  Inc.,  Choctaw  Express, Inc., Choctaw Brokerage, Inc., Allen Freight
Services,  Inc.  and  Decker  Transport  Co.,  Inc.  The  Company's  operating
authorities  are  held  by  P.A.M.  Transport,  P.A.M. Dedicated Services, Inc.,
Choctaw Express, Inc., Choctaw Brokerage, Inc., Allen Freight Services, Inc. and
Decker  Transport Co., Inc.  Although not organized until June 1986, the Company
is,  for financial accounting purposes, the successor to P.A.M. Transport, which
was  organized  under  the  laws  of  the State of Arkansas in 1980.  Unless the
context  otherwise requires, all references to the Company in this Annual Report
on  Form 10-K include P.A.M. Transportation Services, Inc. and its subsidiaries.
At December 31, 1999, the Company operated a transport fleet consisting of 1,468
over-the-road  tractors  ("tractors")  and  3,846  trailers.

     The  Company  is  headquartered  and  maintains  its  primary  terminal,
maintenance  facilities and corporate and administrative offices in Tontitown in
the  northwest  corner of Arkansas, a major center for the trucking industry and
where  the  support  services (including warranty repair services) of most major
tractor  and  trailer  equipment  manufacturers  are  readily  available.

MARKETING/MAJOR CUSTOMERS

     The  Company's  marketing  emphasis  is  directed  to  that  segment of the
truckload  market  which  is  generally  service-sensitive,  as opposed to being
solely price competitive.  Since 1990, the Company has diversified its marketing
efforts  to  gain  access  to  non-traditional  freight  traffic,  including
international (Mexico and Canada), domestic regional short-haul, dedicated fleet
services  and  intermodal  transportation.  The  Company  also  participates  in
various  "core  carrier"  partnerships  with  its larger customers.  The Company
estimates  that  approximately  55% of its deliveries to customers are made on a
JIT ("just in time") basis, whereby products and raw materials are scheduled for
delivery  as  they  are  needed  on  the  retail  customer's  shelves  or in the
manufacturing  customer's production line.  Such requirements place a premium on
the  freight  carrier's  delivery  performance and reliability.  With respect to
these  JIT deliveries, approximately 50% require the use of two-man driver teams
to  meet  the  customer's  schedule.  The  need for this service is a product of
modern  manufacturing  and  assembly  methods  which are designed to drastically
decrease  inventory  levels  and  handling  costs.

     The  Company's  marketing  efforts  are  conducted  by  eight outside sales
persons  domiciled  within  the  Company's  major  markets.  Field personnel are
supervised  from  Company  headquarters,  emphasizing  an  even  flow of freight
traffic  (balance  between originations and destinations in a given geographical
area)  and  minimization  of  movement  of  empty  equipment.

     During  1999,  the  Company's five largest customers, for which the Company
provides  carrier  services covering a number of geographic locations, accounted
for  approximately  52% of total revenues.  General Motors Corporation accounted
for  approximately 30% of 1999 revenues.  A total loss of this business, however
unlikely,  would  have  an  adverse impact on the Company's operations, at least
over  the  short  term.

     The  Company  also  provides transportation services to other manufacturers
who  are  suppliers for automobile manufacturers.  As a result, concentration of
the  Company's business within the industry is greater than the concentration in
a single customer.  Of the Company's revenues for 1999 that were attributable to
its  top  ten  customers,  approximately  46%  were  derived from transportation
services  provided  to  the  automobile  industry.

      The  Company  is  no  longer  required to file tariffs with the Interstate
Commerce  Commission  ("ICC")  or  any  successor  agency.  See  "Regulation."

OPERATIONS

     The  Company maintains dispatch offices at its headquarters, as well as its
offices  in Jacksonville, Florida; Columbia, Mississippi; Warren, Ohio; Oklahoma
City,  Oklahoma; Willard, Ohio; Riverdale, New Jersey; and Irving, Texas, with a
toll  free  WATS  line  to  facilitate  communications  with  both customers and
drivers.  The  location,  status  and contact assignment of all of the Company's
equipment  are  available  on an up-to-date basis through the Company's computer
system,  which permits the Company to better meet delivery schedules, respond to
customer  inquiries  and  match  equipment  with  the  next  available  load.

     The  Company  has installed  Qualcomm Omnitracs(TM) display units in all of
its tractors.  The Omnitracs system is a  satellite-based global positioning and
communications  system  that  allows fleet managers to communicate directly with
drivers.  Drivers  can  provide  location  status  and  updates  directly to the
customer's  computer,  saving  telephone  usage  cost,  lost  productivity,  and
inconvenience.  The  Omnitracs  system  provides  customer service with accurate
estimated time of arrival information which optimizes load selection and service
levels  to  the  Company's  customers.

     The  Company  communicates through electronic data interchange with many of
its  customers,  providing  live status reports of freight shipments and arrival
time  information.  This system provides the Company's customers flexibility and
convenience  by  allowing  the  customer  to  tender  freight  electronically.

     The  Company  has  contractual  arrangements  with  some  customers to move
freight in dedicated lanes within the United States.  A majority of this freight
is  moved on a round-trip basis, and due to the volume involved, the Company has
agreed  to dedicate equipment and personnel to handle this part of its business.
The  Company  has found that dedicated service promotes increased utilization of
equipment  and  greater driver satisfaction due to the greater regularity of the
routes  and schedules, which allows the drivers to be at home more often.  There
exists  a  large  volume  of  dedicated-type business throughout the continental
United  States.  The  Company  has enjoyed considerable success in entering this
market,  and  is  aggressively  seeking  to  expand  its  share of the dedicated
services  market.

OVER-THE-ROAD EQUIPMENT

     The  Company  operated  a  fleet  of  1,468  tractors and 3,846 trailers at
December 31, 1999.  All of the trailers and all except 148 tractors are owned or
leased  by the Company.  The tractors that are not Company owned are leased from
owner/operators  on  a  per  mile  basis.

     At  the  end  of  the  respective  years,  the average age of the Company's
tractors  was  1.94  in 1997, 1.74 in 1998 and 1.64 in 1999.  The average age of
the  Company's  trailer fleet was 2.85, 3.31, and 3.97 at the end of 1997, 1998,
and  1999,  respectively.

     During  1999,  the  Company purchased 545 new tractors and 455 new trailers
and disposed of 407 tractors and 129 trailers.  During 2000, the Company expects
to  purchase  330 new  tractors and 25 new  trailers while continuing to sell or
trade older  equipment.

MAINTENANCE

     The  Company  has  a strictly enforced comprehensive preventive maintenance
program  for  the  tractors  and  trailers it operates.  Inspections and various
levels  of  repair  and  preventive  maintenance  are  performed  at set mileage
intervals  on  both  tractors  and  trailers.  Although a significant portion of
maintenance  is  performed  at  the Company's maintenance facility in Tontitown,
Arkansas,  the  Company's subsidiaries have additional maintenance facilities in
Columbia, Mississippi; Springfield, Missouri; Riverdale, New Jersey; Willard and
Warren,  Ohio;  Oklahoma  City, Oklahoma; and Irving, Laredo and El Paso, Texas.
These  facilities  enhance  the  Company's  preventive  and  routine maintenance
operations  and are strategically located on major transportation routes where a
majority  of the Company's freight originates and terminates.  A maintenance and
safety  inspection  is  performed  on  all  vehicles  each time they return to a
terminal.  The  Company's  primary  maintenance  facilities  consist of thirteen
mechanical  repair  bays,  four  body-shop bays and three safety and maintenance
inspection  bays.  The  Company believes that its current maintenance facilities
will  be  adequate  to  accommodate  its  fleet  for  the  foreseeable  future.

     The  Company's  tractors  carry  full warranty coverage of at least 100,000
miles.  Extended  warranties  are  negotiated  with  the  manufacturer and major
component  manufacturer  (i.e.,  engine,  transmission,  differential) for up to
750,000  miles.  Trailers  are  also  warranted  by  the  manufacturer and major
component  manufacturer  for  up  to  five  years.

     Manufacturers  of  tractors  are required to certify that new tractors meet
federal  emission standards and the Company receives such certifications on each
new  tractor  it acquires.  Certain governmental regulations require the Company
to  adhere  to  a  fuel  and  oil  spillage  prevention  plan and to comply with
regulations  concerning  the  discharge  and disposal of waste oil.  The Company
believes  it  is  in  compliance  with  applicable  waste  disposal and emission
regulations.  The  Company also maintains insurance to cover clean up expense in
the  event  of  a  spill.

DRIVERS

     At December 31, 1999, the Company utilized 1,486 drivers in its operations.
All  drivers are recruited, screened, drug tested and trained and are subject to
the  control and supervision of the Company's operations and safety departments.
The  Company's  driver  training  program  stresses the importance of safety and
reliable, on-time delivery.  Drivers are required to report to their dispatchers
daily  and  at  the  earliest possible moment when any condition en route occurs
which  might  delay  their  scheduled  delivery  time.

     The  Company's drivers are selected only after strict application screening
and  drug testing.  Before being permitted to operate a vehicle for the Company,
drivers  must  undergo classroom instruction on Company policies and procedures,
safety  techniques  and  proper  operation  of equipment and then must pass both
written  and road tests.  Instruction in defensive driving and safety techniques
continues  after  hiring,  with the Company holding seminars at its terminals in
Tontitown,  Arkansas;  Jacksonville,  Florida; Columbia, Mississippi; Riverdale,
New  Jersey;  Warren,  Ohio; and Oklahoma City, Oklahoma.  The Company currently
employs  approximately 56 persons on a full-time basis in its driver recruiting,
training  and  safety  instruction  programs.

     The Company's drivers are compensated on the basis of miles driven, loading
and unloading, extra stop pay and layovers in transit.  Drivers can earn bonuses
by  recruiting  other  qualified  drivers who become employed by the Company and
both  cash  and  non-cash  prizes  are  awarded for consecutive periods of safe,
accident-free  driving.

     Intense competition in the trucking industry for qualified drivers over the
last  several years, along with difficulties and added expense in recruiting and
retaining  qualified  drivers,  has  had a negative impact on the industry.  The
Company's  operations  have also been impacted and from time to time the Company
has  experienced  under-utilization  and increased expenses due to a shortage of
qualified  drivers.  Management  places  the  highest  of  priorities  on  the
recruitment  and  retention  of  an  adequate  supply  of  qualified  drivers.

EMPLOYEES

     At  December  31,  1999, the Company employed 1,899 persons, of which 1,486
are  drivers,  112 are maintenance personnel, 139 are employed in operations, 34
are  employed  in marketing, 56 are employed in safety and personnel, and 72 are
employed  in  general  administration  and accounting.  The Company also has 148
owner/operators under contract who are compensated on a per mile basis.  None of
these  employees are represented by a collective bargaining unit and the Company
believes  that  its  employee  relations  are  good.

REGULATION

     The  Company  is  a  common and contract motor carrier that is regulated by
certain  state  and Canadian regulatory agencies.  Prior to January 1, 1996, the
Company  was also regulated by the ICC.  The ICC governed such activities as the
authority  to  engage in motor carrier operations, rates and charges, accounting
systems,  certain  mergers,  consolidations, acquisitions and periodic financial
reporting.  On  January  1,  1996, however, the ICC Termination Act of 1995 (the
"Termination  Act")  was  enacted,  terminating  the  ICC  and  substantially
deregulating  the  rail  and  motor  carrier  industries.

     The  Termination  Act substantially  revises the Motor Carrier Act of 1980,
eliminating  numerous  unnecessary provisions and streamlining many of the ICC's
functions  regarding the regulation of the motor carrier industry.  The majority
of  the  remaining ICC functions are transferred to the United States Department
of  Transportation ("DOT"), with limited responsibilities transferred to a newly
formed  Surface  Transportation Board.  Some of the ICC functions that have been
eliminated  include:  tariff  filings, except for non-contiguous domestic trade;
rate  regulation,  except  for  non-contiguous  domestic  trade  and  individual
household  goods  movements;  federal  grants  of  operating  authority;  price
regulation  and  tariff  filing  requirements  for office and exhibit moves; the
possibility  of future undercharge claims; restrictions on intermodal ownership;
review  of  motor  carrier  mergers;  and  state  regulation  of  transportation
intermediaries.  In addition, registration and insurance filings under the Motor
Carrier  Act  are  streamlined  into a single federal registration and insurance
system  to  eliminate duplicative and burdensome filing requirements.  Exemption
authority  to  permit  administrative  deregulation  has also been substantially
broadened, with restrictions remaining on only cargo loss and damage, insurance,
safety  fitness  and  antitrust  immunity.

     Prior  to the enactment of the Termination Act, most of the ICC's authority
to  oversee  the  commercial operation of the motor carrier industry had already
been  transferred  to  the  DOT.  The  primary  remaining  functions  which  are
transferred to the DOT by the Termination Act are motor carrier registration and
the  setting  and  maintenance  of  minimum  levels  of liability insurance.  In
addition,  the maintenance of nationwide motor carrier industry commercial rules
(such  as  leasing rules, uniform cargo loss and damage rules, rules for shipper
payment,  and  perfecting  security  interests)  are  transferred  to  the  DOT.

     Currently,  the ICC and the DOT operate separate registration systems.  The
ICC  requires  that  interstate,  for hire carriers receive a license (operating
authority)  with the standards for granting of authority limited to a showing of
safety  and  fitness  and  insurance  coverage  at  a  specified level.  The DOT
registration  system  extends  to  all  carriers,  including  private and exempt
carriers  not  regulated  by  the  ICC.  The  DOT  assigns  each  carrier  an
identification  number.  Carriers are not required to show proof of insurance at
the time of DOT registration, nor is any fee currently charged.  The Termination
Act  continues  the two registration systems for a period of twenty-four months,
during  which  time  the Secretary of Transportation shall conduct a rule-making
and  implement  changes  to  consolidate these two registration systems into one
system.  The  new  system  will  serve  as  a  clearing  house and depository of
information  on  and  identification of all domestic and foreign motor carriers,
brokers,  freight  forwarders  and  others  required  to register.  The DOT will
utilize  the  information  in  overseeing  safety  fitness  and  compliance with
required  levels  of  insurance.  Registrations will be renewed periodically and
the  on-line  system  will  be  available  to  state authorities and the public.

     The  Termination  Act  also continues antitrust immunity granted by the ICC
but  contains  reforms  intended  to  prevent  any  potential  market  abuses.

     Motor carrier operations are also subject to safety requirements prescribed
by  the  DOT  governing  interstate  operation.  Such  matters  as  weight  and
dimensions  of  equipment  are  also  subject  to federal and state regulations.

     The Company believes that it is in compliance in all material respects with
applicable  regulatory  requirements  relating  to  its  trucking  business  and
operates  with  a  satisfactory  rating  from  the  DOT.

COMPETITION

     The  trucking  industry  is  highly  competitive.  The  Company  competes
primarily  with other irregular route long-haul truckload carriers, with private
carriage  conducted  by  its  existing and potential customers, and, to a lesser
extent,  with  the  railroads.  Increased  competition  has  resulted  from
deregulation  of  the  trucking  industry  and  has  generally  exerted downward
pressure on prices.  The Company competes on the basis of its quality of service
and  delivery  performance  as well as price.  Many of the other irregular route
long-haul truckload carriers have substantially greater financial resources, own
more  equipment  or  carry  a  larger  total volume of freight than the Company.

EXECUTIVE OFFICERS

     The  executive  officers  of  the  Company  are  as  follows:

           Name                   Position  with  Company
           ----                   -----------------------
     Robert Weaver       President and Chief Executive Officer

     W. Clif Lawson      Executive Vice President and Chief Operating Officer

     Larry J. Goddard    Vice President-Finance, Chief Financial Officer,
                         Secretary and Treasurer

     ROBERT W. WEAVER,  age 49, is a co-founder of the Company and served as its
Vice  President  from  March  1980  to  June  1986.  He was  President and Chief
Operating Officer from  June  1986  until he resigned in February 1987.  Between
February  1987  and  September  1989, he  was  self-employed as a transportation
Consultant.  In September 1989,  Mr. Weaver returned to the Company as President
and  Chief  Operating  Officer  and  a  director.  On  February 22, 1990, he was
appointed  Chief  Executive  Officer.

     W.  CLIF  LAWSON,  age 46, has been Executive Vice President of the Company
since  August  1989 and Chief Operating Officer since March 1992.  He joined the
Company in June 1984 and served in various operations and sales capacities until
August  1989.

     LARRY  J.  GODDARD,  age  41,  has  been  Vice  President-Finance and Chief
Financial  Officer  since  January  1991 and served as Controller of the Company
from  May  1989  to January 1991.  In addition, he has served as Secretary since
September  1989,  and Treasurer since May 1991.  From November 1987 to May 1989,
he  served  as  General  Accounting  Manager  of  the  Company.

ITEM 2. PROPERTIES
------------------

     The Company's executive offices and primary terminal facilities are located
in  Tontitown,  Arkansas.  The Company's facilities are located on approximately
45  acres  and consist of 79,193 square feet of office space and maintenance and
storage  facilities.  The  Company's  facilities  in  Tontitown are owned by the
Company.

     The  Company's subsidiaries also lease terminal facilities in Jacksonville,
Florida; Springfield, Missouri; Riverdale, New Jersey; Willard and Warren, Ohio;
Oklahoma  City,  Oklahoma;  Memphis, Tennessee; and Laredo, El Paso, and Irving,
Texas;  the  terminal  facilities  in  Columbia,  Mississippi  are owned.  These
facilities  are  leased  primarily  on  a  month-to-month  basis,  and  provide
on-the-road  maintenance  and  trailer  drop  and  relay  stations.

     The  Company  has  access  to  trailer  drop  and relay stations in various
locations  across  the  country.  Certain  of these facilities are leased by the
Company on a month-to-month basis from an affiliate of its majority shareholder.

     The  Company  believes  that  all  of the properties owned or leased by the
Company  are  suitable  for  their  purposes  and adequate to meet the Company's
needs.

ITEM 3. LEGAL PROCEEDINGS
-------------------------

     The  nature  of  the  Company's  business  routinely results in litigation,
primarily involving claims for personal injuries and property damage incurred in
the  transportation  of freight, and management of the Company believes all such
litigation is adequately covered by insurance and that adverse results in one or
more  of  those  cases would not have a material adverse effect on the Company's
financial  condition.

ITEM  4.  SUBMISSION  OF  MATTERS  TO  A  VOTE  OF  SECURITY  HOLDERS.
----------------------------------------------------------------------

     No  matters  were  submitted  to  a vote of security holders of the Company
during  the  fourth  quarter  ended  December  31,  1999.

                                     PART II


ITEM  5.  MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.
--------------------------------------------------------------------------------

The  Company's Common Stock is traded on the Nasdaq National Market System under
the Nasdaq symbol PTSI.  The following table sets forth, for the fiscal quarters
indicated,  the  range  of the high and low sales price per share for the Common
Stock  as  quoted  on  the  Nasdaq  National  Market  System.

<TABLE>
<CAPTION>
Fiscal  Year  Ended  December  31,  1999
----------------------------------------
                                  High               Low
                                  ----               ---
<S>                           <C>               <C>
First Quarter                 $     10          $      7
Second Quarter                   9 7/8           8 15/16
Third Quarter                   12 7/8             9 1/4
Fourth Quarter                  12 1/8           9 13/16
</TABLE>

<TABLE>
<CAPTION>
Fiscal  Year  Ended  December  31,  1998
----------------------------------------
                                  High               Low
                                  ----               ---
<S>                           <C>                <C>
First Quarter                 $ 11 3/4           $ 8 3/4
Second Quarter                      12             8 3/4
Third Quarter                       10             6 1/4
Fourth Quarter                       9             6 1/2
</TABLE>

     As  of  March  13,  2000,  the  number  of  stockholders  of  record  was
approximately  331.  The  Company  has not declared or paid any cash dividend on
its  common  stock.  The  policy  of the Board of Directors of the Company is to
retain  earnings  for  the  expansion and development of the Company's business.
Future  dividend policy and the payment of dividends, if any, will be determined
by the Board of Directors in light of circumstances then existing, including the
Company's earnings, financial condition and other factors deemed relevant by the
Board  of  Directors.

ITEM  6.  SELECTED  FINANCIAL  DATA.
------------------------------------

    The following selected financial data should be read in conjunction with the
Consolidated  Financial  Statements and notes thereto included elsewhere herein.

<TABLE>
<CAPTION>
                                                             Years Ended December 31,
                                                1999       1998       1997       1996      1995
                                              ---------------------------------------------------
                                                     (in thousands, except per share amounts)
<S>                                           <C>        <C>        <C>        <C>        <C>
Statement of operations:
Operating revenues                            $207,381   $143,164   $127,211   $113,021   $91,595
                                              ---------------------------------------------------
Operating expenses:
Salaries, wages and benefits                    90,248     65,169     57,662     52,444    40,020
Operating supplies                              35,246     26,511     24,666     21,909    16,719
Rent and purchased transportation               13,309      1,082      1,655      1,824     1,538
Depreciation and amortization                   18,392     14,003     12,995     11,999     9,428
Operating taxes and licenses                    11,334      8,388      7,581      6,734     5,608
Insurance and claims                             7,945      6,069      5,571      5,004     4,163
Communications and utilities                     2,365      1,583      1,001      1,090       852
Other                                            4,388      3,131      2,394      2,077     1,666
(Gain) loss on sale or disposal of property       (301)       168         71        375       159
                                              ---------------------------------------------------
Total operating expenses                       182,926    126,104    113,596    103,456    80,153
                                              ---------------------------------------------------
Operating income                                24,455     17,060     13,615      9,565    11,442
Interest expense                                (5,650)    (3,830)    (3,423)    (4,137)   (3,521)
Other                                                -          1          -         31       166
                                              ---------------------------------------------------
Income before income taxes                      18,805     13,231     10,192      5,459     8,087
Income taxes                                     7,536      5,158      3,892      2,147     3,073
                                              ---------------------------------------------------
Net income                                    $ 11,269   $  8,073   $  6,300   $  3,312  $  5,014
                                              ===================================================
Earnings per common share:
Basic                                         $   1.34   $   0.97   $   0.77   $   0.66  $   1.01
                                              ===================================================
Diluted                                       $   1.33   $   0.96   $   0.76   $   0.44  $   0.66
                                              ===================================================
Average common shares outstanding-Basic          8,393      8,306      8,192      5,035     4,970
                                              ===================================================
Average common shares outstanding-Diluted(1)     8,488      8,444      8,290      7,578     7,654
                                              ===================================================

(1) Income per share for 1999, 1998, 1997, 1996 and 1995 assumes the exercise of stock  purchase
    warrants and stock options  to purchase an aggregate of 262,097, 317,040, 347,850, 3,545,280
    and  3,529,278  shares  of Common  Stock,  respectively.
</TABLE>

<TABLE>
<CAPTION>
                                          Balance Sheet Data
                                            At December 31,

                               1999     1998    1997     1996    1995
                             -----------------------------------------
                                         (in thousands)
<S>                          <C>      <C>      <C>      <C>     <C>
Total assets                 168,961  126,471  100,688  94,985  86,808
Long term debt                55,617   44,816   28,226  34,938  37,966
Shareholders' equity          53,365   41,457   33,162  26,312  18,232
</TABLE>

<TABLE>
<CAPTION>
                                                                     Operating Data
                                                                 Years Ended December 31,

                                          1999            1998            1997            1996            1995
                                        --------------------------------------------------------------------------
<S>                                     <C>             <C>             <C>             <C>             <C>
Operating ratio (1)                         88.2%           88.1%           89.4%           91.5%           87.5%
Average number of truckloads per week      4,885           3,425           2,874           2,437           1,913
Average miles per trip                       734             767             786             845             899
Total miles traveled (in thousands)      176,358         131,847         115,622         102,946          85,588
Average miles per tractor                128,966         125,569         125,404         122,250         118,424
Average revenue per tractor per week    $  2,848        $  2,716        $  2,694        $  2,684        $  2,711
Average revenue per loaded mile         $   1.18        $   1.15        $   1.17        $   1.17        $   1.14
Empty mile factor                            5.4%            5.5%            5.8%            6.1%            6.2%


At end of period:
Total company-owned/leased tractors. .     1,468(2)        1,127(3)          975(3)          912(4)          716(5)
Average age of all tractors (in years)      1.64            1.74            1.94            1.85            1.26
Total trailers                             3,846(6)        2,784(7)        2,678(8)        2,398(9)        1,638(10)
Average age of trailers (in years)          3.97            3.31            2.85            2.60            2.34
Number of employees                        1,899           1,656           1,446           1,438           1,192

(1)  Total  operating  expenses  as  a  percentage  of total operating revenues.
(2)  Includes  148  owner  operator  tractors.
(3)  Includes  94  owner  operator  tractors.
(4)  Includes  126  owner  operator  tractors.
(5)  Includes  45  owner  operator  tractors.
(6)  Includes  21  trailers  leased  from an affiliate of the Company's majority shareholder.
(7)  Includes  46  trailers  leased  from an affiliate of the Company's majority shareholder.
(8)  Includes  66  trailers  leased  from an affiliate of the Company's majority shareholder.
(9)  Includes  74  trailers  leased  from an affiliate of the Company's majority shareholder.
(10) Includes  82  trailers  leased from an affiliate of the Company's majority shareholder.
</TABLE>

ITEM  7.     MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF FINANCIAL CONDITION AND
--------------------------------------------------------------------------------
RESULTS  OF  OPERATIONS.
------------------------

     Certain  statements  contained  in  this  filing  are  "forward-looking
statements"  within  the meaning of the Private Securities Litigation Reform Act
of  1995,  such as statements relating to financial results and plans for future
business development activities, and are thus prospective.  Such forward-looking
statements  are  subject  to  risks, uncertainties and other factors which could
cause  actual  results  to  differ  materially  from future results expressed or
implied  by  such  forward-looking statements. Potential risks and uncertainties
include, but are not limited to, general economic conditions, competition in the
transportation  industry  and  other uncertainties detailed from time to time in
the  Company's  Securities  and  Exchange  Commission  filings.

     The  following  table sets forth the percentage relationship of revenue and
expense  items  to  operating  revenues  for  the  periods  indicated.

<TABLE>
<CAPTION>
                                       Percentage of Operating Revenues
                                           Years Ended December 31,

                                             1999   1998   1997
                                             ------------------
<S>                                          <C>    <C>    <C>
Operating revenues                           100%   100%   100%
                                             ------------------
Operating expenses:
Salaries, wages and benefits                 43.5   45.5   45.3
Operating supplies                           17.0   18.5   19.4
Rent and purchased transportation             6.4    0.8    1.3
Depreciation and amortization                 8.9    9.8   10.2
Operating taxes and licenses                  5.5    5.9    6.0
Insurance and claims                          3.8    4.2    4.4
Communications and utilties                   1.1    1.1    0.8
Other                                         2.1    2.2    1.9
(Gain) loss on sale or disposal of property  (0.1)   0.1    0.1
                                             ------------------
Total operating expenses                     88.2   88.1   89.4
                                             ------------------
Operating income                             11.8   11.9   10.6
Interest expense                             (2.7)  (2.7)  (2.7)
                                             ------------------
Income before income taxes                    9.1    9.2    7.9
Federal and state income taxes               (3.6)  (3.6)  (3.1)
                                             ------------------
Net income                                    5.5    5.6    4.8
                                             ==================
</TABLE>

RESULTS  OF  OPERATIONS

1999  COMPARED  TO  1998

     For  the  year  ended  December  31, 1999, revenues increased 44.9% to $207
million  as  compared to $143 million for the year ended December 31, 1998.  The
Company's  utilization  (revenue  per  tractor per work day) increased 5.0% from
$543  in  1998  to  $570  in  1999.

     The  Company's  operating  ratio  increased  from 88.1%  in  1998  to 88.2%
in 1999

     Salaries,  wages  and  benefits decreased from 45.5% of revenues in 1998 to
43.5%  of  revenues  in  1999.  The  decrease relates primarily to the brokerage
operations  of  Decker Transport in which revenues are generated through the use
of  outside  transportation  services  and  not  Company  paid  drivers.

     Operating supplies and expenses decreased from 18.5% of revenues in 1998 to
17.0%  of  revenues  in  1999.  The  decrease,  which was partially offset by an
increase  in  fuel  costs, relates primarily to costs associated with the Decker
brokerage  operations  being combined and paid to other transportation companies
in  the  form  of  purchased  transportation.

     Rent  and  purchased transportation increased from 0.8% of revenues in 1998
to  6.4%  of  revenues  in 1999.  The increase relates primarily to the purchase
of  transportation  services  from  other  transportation  companies in order to
support  brokerage  operations.

     Depreciation  and  amortization  decreased from 9.8% of revenues in 1998 to
8.9%  of revenues in 1999.  The decrease relates primarily to the utilization of
outside  transportation  companies'  drivers  and  equipment in order to perform
brokerage  activities.

     The  Company's  effective tax rate increased from 38.9% in 1998 to 40.1% in
1999.  This  increase  is related to payments made to Decker drivers in the form
of  a per diem which is only partially deductible by the Company for federal and
state  income  tax  purposes.


1998  COMPARED  TO  1997

     For  the  year  ended  December  31, 1998, revenues increased 12.5% to $143
million  as  compared to $127 million for the year ended December 31, 1997.  The
Company's  utilization  (revenue  per  tractor per work day) increased .74% from
$539  in  1997  to  $543  in  1998.

     The Company's operating ratio improved from 89.4% in 1997 to 88.1% in 1998.

     Operating supplies and expenses decreased from 19.4% of revenues in 1997 to
18.5% of revenues in 1998, reflecting a decrease of 1.9% in fuel costs for 1998.
This  decrease  was  partially offset by an increase of .8% in driver recruiting
and  training  costs.

     Rent  and  purchased transportation decreased from 1.3% of revenues in 1997
to 0.8% of revenues in 1998.  This decrease was due to the replacement of rental
trailers  with  Company-owned  trailers  and  a  planned  decrease in intermodal
operations,  thus  reducing  purchased  transportation  costs.

     The  Company's  effective tax rate increased from 38.2% in 1997 to 39.0% in
1998.

LIQUIDITY  AND  CAPITAL  RESOURCES

     During  1999,  the  Company  generated $39.6 million in cash from operating
activities.  The  ratio  of  current assets to current liabilities was .8 at the
end  of 1999, compared to 1.2 and 1.0 at the end of 1998 and 1997, respectively.

     Investing  activities  used $47.8 million in cash in 1999 compared to $38.3
million  and $16.5 million in 1998 and 1997, respectively.  The cash used in all
three  years  related primarily to the purchase of revenue equipment used in the
Company's  operations.

     Financing  activities  provided $5.8 million in cash in 1999 primarily from
long-term debt incurred to finance the purchase of revenue equipment used in the
Company's  operations.

     The  Company's  principal  subsidiary,  P.A.M. Transport, Inc., has a $15.0
million  secured  bank  line  of  credit  subject  to  borrowing  limitations.
Withdrawals  from  the line of credit are at an interest rate of LIBOR as of the
first  day  of the month plus 1.40% (7.88% at December 31, 1999).  The Company's
borrowing limitation at December 31, 1999 was $7.5 million.  This line of credit
is  guaranteed  by  the  Company  and  matures May 31, 2001.  The line of credit
agreement contains restrictive covenants which require the Company to maintain a
net  worth  of  $12.5 million and a debt service coverage ratio of not less than
1.0 to 1.0.  The line of credit agreement also includes restrictions on dividend
payments  and  certain  corporate  acts  such as mergers and consolidations.  At
December  31,  1999,  the  Company  was  in  compliance with all such covenants.

     In  addition  to  cash  flow from operations, the Company uses its existing
line  of  credit  on  an interim basis to finance capital expenditures and repay
long-term  debt.  Longer-term transactions, such as installment notes (generally
three  and  four  year  terms at fixed rates) are typically entered into for the
purchase of revenue equipment; however, the Company purchased additional revenue
equipment  during  1999  with  a  cost  of approximately $24.0 million using its
existing  line  of  credit  and cash on hand.  Four subsidiaries of the Company,
P.A.M.  Transport, Inc., P.A.M. Dedicated Services, Inc., Choctaw Express, Inc.,
and Decker Transport Co., Inc., entered into installment obligations in 1999 for
the  purchase of replacement revenue equipment which totaled approximately $11.1
million, $2.2 million, $12.4 million, and $7.5 million, respectively, payable in
36,  48,  and  60  monthly  installments at interest rates ranging from 6.34% to
7.73%.  The  Company's  weighted  average  interest rates on all borrowings were
6.73%,  7.68%  and  7.69%  for  1999,  1998  and  1997,  respectively.

     During 1999, the Company sold or traded revenue equipment for approximately
$12.7  million.  The  Company  plans  to replace 25 trailers and 330 tractors in
2000,  which  would  result  in  additional debt of approximately $26.2 million.
Management  expects that the Company's net cash provided by operating activities
and  its  available  line  of  credit  will  be sufficient to meet the Company's
capital commitments as of December 31, 1999, to repay indebtedness coming due in
the  current  year,  and  to  fund  its  operating  needs  during  fiscal  2000.

INSURANCE

     Auto  liability  and  collision  coverage are generally subject to a $2,500
deductible  per  occurrence  while  cargo  loss  coverage generally has a $1,000
deductible.  The  Company  maintains  a  reserve for estimated losses for claims
incurred, and maintains a reserve for claims incurred but not reported (based on
the  Company's  historical experience).  The Company is fully-insured through an
insurance  company  for  workers'  compensation  coverage in Arkansas, Oklahoma,
Mississippi  and Florida.  The Company continues to be self-insured for workers'
compensation  coverage  in  Ohio  with  excess  coverage  maintained  for claims
exceeding  $350,000.  The  Company has reserved for estimated losses to pay such
claims  as incurred as well as claims incurred but not reported. The Company has
not  experienced  any adverse trends involving differences in claims experienced
versus  claims  estimates  for  workers'  compensation  reserves.  The  Company
contracts  a  third-party  licensed associate of risk management and a certified
Hazard  Control  Manager to develop its workers' compensation reserves using the
Company's  historical  data  of  past injuries.  Letters of credit are held by a
bank  as  security  for  workers'  compensation  claims  in  Arkansas, Oklahoma,
Mississippi,  and Florida, respectively, and two letters of credit are held by a
bank  for  auto  liability  claims.

SEASONALITY

     The  Company's revenues do not exhibit a seasonal pattern, due primarily to
its  varied  customer  mix.  Operating expenses are generally somewhat higher in
the  winter  months,  primarily  due  to decreased fuel efficiency and increased
maintenance  costs  in  cold  weather.

ENVIRONMENTAL

     The  Company  has  no  outstanding  inquiries  with  any  federal  or state
environmental  agency  at  December  31,  1999.

INFLATION

     Inflation  has  an  impact  on  most  of  the  Company's  operating  costs.
Recently,  the  effect  of  inflation  has  been  minimal.

     Competition for drivers has increased in recent years, leading to increased
labor  costs.  While  increases  in  fuel  and driver costs affect the Company's
operating  costs,  the effects of such increases are not greater for the Company
than  for  other  trucking  concerns.


ITEM  7A.  QUANTITATIVE  AND  QUALITATIVE  DISCLOSURE  ABOUT  MARKET  RISK.
---------------------------------------------------------------------------

     The  Company  is exposed to cash flow and interest rate risk due to changes
in  interest  rates  with  respect  to  its  long-term  debt.  See note 3 to the
consolidated  financial  statements for details on the Company's long-term debt.


ITEM  8.  FINANCIAL  STATEMENTS  AND  SUPPLEMENTARY  DATA.
----------------------------------------------------------

     The  following  statements  are  filed  with  this  report:

     Report  of  Independent  Public  Accountants

     Consolidated  Balance  Sheets  -  December  31,  1999  and  1998

     Consolidated  Statements  of  Income -  Years ended December 31, 1999, 1998
     and 1997

     Consolidated Statements of Shareholders' Equity  - Years ended December 31,
     1999, 1998 and 1997

     Consolidated Statements of Cash Flows - Years ended December 31, 1999, 1998
     and 1997

     Notes  to  Consolidated  Financial  Statements


ITEM  9.  CHANGES  IN  AND  DISAGREEMENTS  WITH  ACCOUNTANTS  ON  ACCOUNTING AND
--------------------------------------------------------------------------------
FINANCIAL  DISCLOSURE.
----------------------

     No  response  is  required  to  this  item.



              P.A.M. Transportation Services, Inc. and Subsidiaries

                        Consolidated Financial Statements

                  Years ended December 31, 1999, 1998 and 1997


                                    CONTENTS

                  Report  of  Independent  Public  Accountants
                 Audited  Consolidated  Financial  Statements:
                        Consolidated  Balance  Sheets
                     Consolidated  Statements  of  Income
               Consolidated  Statements  of  Shareholders'  Equity
                   Consolidated  Statements  of  Cash  Flows
                  Notes  to  Consolidated  Financial  Statements



                    Report of Independent Public Accountants


To  the  Board  of  Directors  and  Shareholders  of
P.A.M.  Transportation  Services,  Inc.:


We  have  audited  the  accompanying  consolidated  balance  sheets  of  P.A.M.
Transportation  Services,  Inc.  (a Delaware corporation) and subsidiaries as of
December  31,  1999 and 1998, and the related consolidated statements of income,
shareholders'  equity,  and cash flows for each of the three years in the period
ended  December  31,  1999.  These  consolidated  financial  statements  are the
responsibility  of the Company's management. Our responsibility is to express an
opinion  on  these  consolidated  financial  statements  based  on  our  audits.

We conducted our audits in accordance with auditing standards generally accepted
in  the United States. Those standards require that we plan and perform an audit
to  obtain  reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting  the  amounts  and  disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made  by  management,  as  well  as  evaluating  the overall financial statement
presentation.  We  believe  that  our  audits provide a reasonable basis for our
opinion.

In  our opinion, the consolidated financial statements referred to above present
fairly,  in  all  material  respects,  the  financial  position  of  P.A.M.
Transportation Services, Inc. and subsidiaries as of December 31, 1999 and 1998,
and  the  results of their operations and their cash flows for each of the three
years  in  the  period  ended  December  31, 1999, in conformity with accounting
principles  generally  accepted  in  the  United  States.


                                             ARTHUR  ANDERSEN  LLP

Fayetteville,  Arkansas
  February  18,  2000



<TABLE>
<CAPTION>

                              P.A.M. Transportation Services, Inc.

                                  Consolidated Balance Sheets
                            (thousands, except shares and par value)



                                                                   December 31,
                                                                1999         1998
                                                             -----------------------
<S>                                                          <C>          <C>
Assets
Current assets:
  Cash and cash equivalents                                  $   3,557    $   5,963
  Accounts receivable:
    Trade, net of allowance for doubtful
    accounts(1999--$655; 1998--$579)                            22,890       20,816
    Other                                                        1,032           63
  Equipment held for sale                                            -          505
  Operating supplies and inventories                                60          458
  Prepaid expenses and deposits                                  4,408        3,860
  Deferred income taxes                                            378           19
  Income taxes refundable                                          113           38
                                                             -----------------------
Total current assets                                            32,438       31,722

Property and equipment:
  Land                                                           1,224          959
  Structures and improvements                                    3,021        2,667
  Revenue equipment                                            167,012      124,354
  Service vehicles                                                 667        1,944
  Office furniture and equipment                                 5,578        3,936
                                                             -----------------------
                                                               177,502      133,860
  Allowances for depreciation                                  (51,382)     (42,429)
                                                             -----------------------
                                                               126,120       91,431
Other assets:
  Excess of cost over net assets acquired, net of
   accumulated amortization (1999--$973; 1998--$849)             8,911        2,277
  Non-competition agreements, net of accumulated
   amortization (1999--$131; 1998--$1,549)                         261          297
  Other                                                          1,231          744
                                                             -----------------------
                                                                10,403        3,318
                                                             -----------------------
Total assets                                                 $ 168,961    $ 126,471
                                                             =======================
</TABLE>

<TABLE>
<CAPTION>

                                                                   December 31,
                                                                1999         1998
                                                             -----------------------
<S>                                                          <C>          <C>
Liabilities and Shareholders' Equity
Current liabilities:
  Trade accounts payable                                     $  11,210    $   8,494
  Accrued expenses                                               7,674        5,178
  Current portion of long-term debt                             22,271       13,362
                                                             -----------------------
Total current liabilities                                       41,155       27,034


Long-term debt, less current portion                            55,617       44,816


Deferred income taxes                                           18,693       13,164


Non-competition agreements                                         131            _


Shareholders' equity:
 Common stock, $.01 par value:
  Authorized shares--20,000,000
  Issued and outstanding shares: 1999-8,439,957;
    1998-8,324,957                                                  84           83
  Additional paid-in capital                                    19,452       18,814
  Retained earnings                                             33,829       22,560
                                                             -----------------------
Total shareholders' equity                                      53,365       41,457
                                                             -----------------------
Total liabilities and shareholders' equity                   $ 168,961    $ 126,471
                                                             =======================

See accompanying notes.

</TABLE>


<TABLE>
<CAPTION>

                             P.A.M. Transportation Services, Inc.

                              Consolidated Statements of Income
                             (thousands, except per share data)

                                                                 Year ended December 31,
                                                               1999       1998       1997
                                                             -------------------------------
<S>                                                          <C>        <C>        <C>
Operating revenues                                           $207,381   $143,164   $127,211
Operating expenses and costs:
 Salaries, wages and benefits                                  90,248     65,169     57,662
 Operating supplies and expenses                               35,246     26,511     24,666
 Rents and purchased transportation                            13,309      1,082      1,655
 Depreciation and amortization                                 18,392     14,003     12,995
 Operating taxes and licenses                                  11,334      8,388      7,581
 Insurance and claims                                           7,945      6,069      5,571
 Communications and utilities                                   2,365      1,583      1,001
 Other                                                          4,388      3,131      2,394
 (Gain) loss on sale or disposal of equipment                    (301)       168         71
                                                             -------------------------------
                                                              182,926    126,104    113,596
                                                             -------------------------------
Operating income                                               24,455     17,060     13,615

Interest expense                                               (5,650)    (3,829)    (3,423)
                                                             -------------------------------
Income before income taxes                                     18,805     13,231     10,192
Federal and state income taxes:
 Current                                                        2,107      1,323      1,120
 Deferred                                                       5,429      3,835      2,772
                                                             -------------------------------
                                                                7,536      5,158      3,892
                                                             -------------------------------
Net income                                                   $ 11,269   $  8,073   $  6,300
                                                             ===============================

Earnings per common share:
   Basic                                                     $   1.34   $    .97   $    .77
                                                             ===============================
   Diluted                                                   $   1.33   $    .96   $    .76
                                                             ===============================
Average common shares outstanding:
   Basic                                                        8,393      8,306      8,192
                                                             ===============================
   Diluted                                                      8,488      8,444      8,290
                                                             ===============================
See accompanying notes.
</TABLE>

<TABLE>
<CAPTION>
                                P.A.M. Transportation Services, Inc.

                          Consolidated Statements of Shareholders' Equity
                                           (thousands)

                                                         Additional
                                             Common        Paid-In       Retained
                                             Stock         Capital       Earnings       Total
------------------------------------------------------------------------------------------------
<S>                                         <C>          <C>             <C>           <C>
Balances at December 31, 1996               $      81      $ 18,044      $  8,187      $ 26,312
 Net income                                         -             -         6,300         6,300
 Exercise of stock options-shares issued            2           467             -           469
 Tax benefits of stock options                      -            81             -            81
------------------------------------------------------------------------------------------------
Balances at December 31, 1997                      83        18,592        14,487        33,162
 Net income                                         -             -         8,073         8,073
 Exercise of stock options-shares issued            -           175             -           175
 Tax benefits of stock options                      -            47             -            47
------------------------------------------------------------------------------------------------
Balances at December 31, 1998                      83        18,814        22,560        41,457
 Net income                                         -             -        11,269        11,269
 Exercise of stock options-shares issued            1           488             -           489
 Tax benefits of stock options                      -           150             -           150
------------------------------------------------------------------------------------------------
Balances at December 31, 1999               $      84      $ 19,452      $ 33,829      $ 53,365
================================================================================================

See accompanying notes.
</TABLE>

<TABLE>
<CAPTION>

                                 P.A.M. Transportation Services, Inc.

                                Consolidated Statements of Cash Flows
                                             (thousands)

                                                                   Year ended December 31,
                                                                1999        1998        1997
                                                             ----------------------------------
<S>                                                          <C>         <C>         <C>
Net income                                                   $  11,269   $   8,073   $   6,300
Adjustments to reconcile net income to net cash provided
 by operating activities:
   Depreciation and amortization                                18,392      14,003      12,995
   Non-competition agreement amortization                          427         440         440
   Provision for deferred income taxes                           5,429       3,835       2,772
   (Gain) loss on sale or disposal of equipment                   (301)        168          71
   Changes in operating assets and liabilities,
    net of acquisition:
    Accounts receivable                                          2,322      (2,261)     (1,515)
    Prepaid expenses and other assets                              563        (724)       (318)
    Income taxes refundable                                        (75)        377        (415)
    Trade accounts payable                                         920        (739)      3,650
    Accrued expenses                                               609         343       1,018
                                                             ----------------------------------
Net cash provided by operating activities                       39,555      23,515      24,998
                                                             ----------------------------------
Investing Activities
Purchases of property and equipment                            (51,480)    (46,119)    (16,736)
Proceeds from sale or disposal of equipment                     12,668       7,846         195
Lease payments received on direct financing lease                  670           -           -
Acquisition of business, net of cash acquired                   (9,642)          -           -
                                                             ----------------------------------
Net cash used in investing activities                          (47,784)    (38,273)    (16,541)
                                                             ----------------------------------
Financing Activities
Borrowings under line of credit                                199,508     173,227     151,616
Repayments under line of credit                               (195,559)   (178,449)   (153,624)
Borrowings of long-term debt                                    24,179      43,785      12,784
Repayments of long-term debt                                   (22,589)    (24,017)    (18,792)
Payments under non-competition agreements                         (355)       (448)       (450)
Proceeds from exercise of stock options and warrants               489         175         388
Tax benefits of stock options                                      150          47          81
                                                             ----------------------------------
Net cash provided by (used in) financing activities              5,823      14,320      (7,997)
                                                             ----------------------------------
Net (decrease) increase in cash and cash equivalents            (2,406)       (438)        460
Cash and cash equivalents at beginning of year                   5,963       6,401       5,941
                                                             ----------------------------------
Cash and cash equivalents at end of year                     $   3,557   $   5,963   $   6,401
                                                             ==================================

See accompanying notes.
</TABLE>

                      P.A.M. Transportation Services, Inc.
                   Notes to Consolidated Financial Statements
                                December 31, 1999

1.  ACCOUNTING  POLICIES

DESCRIPTION  OF  BUSINESS  AND  CONSOLIDATION

P.A.M.  Transportation Services, Inc. (the "Company"), through its subsidiaries,
operates  as  a  truckload  motor  carrier.

The  consolidated  financial  statements include the accounts of the Company and
its  subsidiaries.  All  significant intercompany accounts and transactions have
been  eliminated.

Majority  ownership  of  the  Company  is  held  by  an  affiliate  of  another
transportation  company,  with  whom  the  Company  has  certain  business
relationships.

CASH  AND  CASH  EQUIVALENTS

The  Company  considers  all  highly liquid investments with a maturity of three
months  or  less  when  purchased  to  be  cash  equivalents.

TIRE  PURCHASES

Tires  purchased with revenue equipment are capitalized as a cost of the related
equipment.  Replacement  tires  are  included  in  other  current assets and are
amortized  over  a 24-month period.  Amounts paid for the recapping of tires are
expensed  when  incurred.

EXCESS  OF  COST  OVER  NET  ASSETS  ACQUIRED

The  excess of cost over net assets acquired, or goodwill, is being amortized on
a  straight-line  basis  over  25  years. The carrying value of goodwill will be
reviewed if the facts and circumstances suggest that it may be impaired. If this
review  indicates  that goodwill will not be recoverable, as determined based on
undiscounted  cash  flows  expected  over the remaining amortization period, the
Company's  carrying  value  of  the  goodwill  would be reduced by the estimated
shortfall of cash flows. No reduction of goodwill was required in 1999, 1998, or
1997.

CLAIMS  LIABILITIES

With  respect  to  cargo  loss,  physical damage and auto liability, the Company
maintains  the  following insurance coverage and deductibles:  P.A.M. Transport,
Inc.,  P.A.M.  Dedicated  Services,  Inc., and Choctaw Express, Inc. are covered
under  the same insurance policy issued by St. Paul Insurance Company.  The auto
liability  and  physical damage coverages are subject to a $2,500 deductible per
occurrence while the cargo loss coverage has a $1,000 deductible.  Allen Freight
Services,  Inc.,  is  also  insured  by  St.  Paul  Insurance  Company.

                      P.A.M. Transportation Services, Inc.
             Notes to Consolidated Financial Statements (continued)


1.  ACCOUNTING  POLICIES  (continued)

The  auto  liability  policy  does  not  have a deductible.  The physical damage
coverage  is  subject to a $2,500 deductible per occurance, while the cargo loss
coverage  is subject to a deductible of $5,000 per occurrence.  Decker Transport
Company,  Inc.  is  insured  by  Wausau Insurance Company for auto liability and
Lexington  Insurance  Company for cargo loss and physical damage coverage.  Each
of  these  coverages  are  subject  to  a  $2,500 deductible per occurance.  The
Company  maintains  a  reserve  for  estimated  losses  for  claims incurred and
maintains a reserve for claims incurred but not reported (based on the Company's
historical  experience).  During  1998,  the  Company  changed  from  being
self-insured  for  workers'  compensation  coverage  in  Arkansas,  Oklahoma,
Mississippi  and  Florida  with  excess coverage maintained for claims exceeding
$250,000,  to  being fully-insured through Virginia Surety Insurance Company for
workers'  compensation  coverage  in  those states.  The Company continues to be
self-insured  for  workers'  compensation coverage in Ohio with  excess coverage
maintained  for  claims  exceeding  $350,000.  The  Company  has  reserved  for
estimated  losses  to pay such claims as incurred as well as claims incurred but
not  reported.  The  Company  has  not  experienced any adverse trends involving
differences  in  claims  experienced  versus  claims  estimates  for  workers'
compensation  reserves.  The  Company contracts a third-party licensed associate
of  risk  management  and  a  certified  Hazard  Control  Manager to develop its
workers'  compensation  reserves  using  the  Company's  historical data of past
injuries.  Letters of credit in the amounts of $300,000, $200,000, $250,000, and
$100,000  are  held  by  a  bank as security for workers' compensation claims in
Arkansas,  Oklahoma,  Mississippi,  and  Florida,  respectively,  and letters of
credit  aggregating  $704,500  are  held  by  a  bank for auto liability claims.

REVENUE  RECOGNITION  POLICY

The  Company  recognizes  revenue  based  upon  relative  transit  time  in each
reporting  period  with  expenses  recognized  as  incurred.

PROPERTY  AND  EQUIPMENT

Property  and  equipment  is recorded at cost. For financial reporting purposes,
the  cost  of  such  property  is  depreciated  principally by the straight-line
method.  For tax reporting purposes, accelerated depreciation or applicable cost
recovery  methods  are  used.  Gains  and  losses  are  reflected in the year of
disposal.   The  following is a table reflecting estimated ranges of asset lives
by  major  class  of  depreciable  assets:

<TABLE>
<CAPTION>
            Asset Class                  Estimated Asset Life
            -----------                  --------------------
<S>                                      <C>
            Revenue Equipment                 3-7 years
            Service Vehicles                  3-5 years
            Office Furniture & Equipment      3-7 years
            Structures & Improvements         5-30 years
</TABLE>

                      P.A.M. Transportation Services, Inc.
             Notes to Consolidated Financial Statements (continued)


1.  ACCOUNTING  POLICIES  (continued)

EQUIPMENT  HELD  FOR  SALE

Equipment  held for sale consists of revenue equipment no longer in service that
is  expected  to be sold within the next year. This equipment is recorded at its
estimated  net  realizable  value.

INCOME  TAXES

The  Company  applies  the  provisions  of  Statement  of  Financial  Accounting
Standards  No.  109, Accounting for Income Taxes ("SFAS No. 109").  SFAS No. 109
requires  recognition of deferred tax liabilities and assets for expected future
consequences  of  events  that  have  been  included  in  a  company's financial
statements  or  tax  return.  Under  this  method,  deferred tax liabilities and
assets  are  determined based on the difference between the financial statements
and  the  tax  basis  of  assets  and  liabilities  using  enacted  tax  rates.

BUSINESS  SEGMENT  AND  CONCENTRATIONS  OF  CREDIT  RISK

The  Company  operates  in  one  business segment, motor carrier operations. The
Company  provides  transportation  services  to  customers throughout the United
States  and  portions  of Canada and Mexico. The Company performs ongoing credit
evaluations  and  generally  does  not require collateral. The Company maintains
reserves  for  potential  credit  losses  and  such  losses  have  been  within
management's  expectations.

In 1999, 1998 and 1997, one customer accounted for 30%, 35% and 25% of revenues,
respectively.  A second customer accounted for 9% of revenues in 1999 and 12% of
revenues  in both 1998 and 1997. The Company's largest customer is an automobile
manufacturer.  The  Company  also  provides  transportation  services  to  other
manufacturers  who  are  suppliers  for  automobile  manufacturers including the
Company's  largest  customer.  As  a  result,  concentration  of  the  Company's
business  within  the automobile industry is greater than the concentration in a
single  customer.  Of  the  Company's revenues for 1999, 1998 and 1997, 46%, 53%
and 41%, respectively, were derived from transportation services provided to the
automobile  manufacturing  industry.

COMPENSATION  TO  EMPLOYEES

Stock  based  compensation to employees is accounted for based on the instrinsic
value  method  under  Accounting Principles Board Opinion No. 25, Accounting for
Stock  Issued  to  Employees.

                      P.A.M. Transportation Services, Inc.
             Notes to Consolidated Financial Statements (continued)


1.  ACCOUNTING  POLICIES  (continued)

RECENT  ACCOUNTING  PRONOUNCEMENTS

In  June  1998,  the  Financial  Accounting  Standards Board issued Statement of
Financial  Accounting  Standards  No. 133, Accounting for Derivative Instruments
and  Hedging  Activities, ("SFAS No. 133"), as amended by Statement of Financial
Accounting  Standards No. 137, Accounting for Derivative Instruments and Hedging
Activities - Deferral of the Effective Date of FASB Statement No. 133.  SFAS No.
133  establishes  accounting  and  reporting  standards  requiring  that  every
derivative  instrument  (including  certain  derivative  instruments embedded in
other  contracts)  be  recorded  in  the  balance  sheet  as  either an asset or
liability measured at its fair value.  SFAS No. 133 requires that changes in the
derivative's  fair  value  be  recognized  currently in earnings unless specific
hedge  accounting  criteria  are  met.  Special accounting for qualifying hedges
allows  a  derivative's gains and losses to offset related results on the hedged
item  in the income statement.  Companies must formally document, designate, and
assess  the  effectiveness  of transactions that receive hedge accounting.  SFAS
No.  133  is  effective for fiscal years beginning after June 15, 2000; however,
companies  may implement the statement as of the beginning of any fiscal quarter
beginning  on  or  after  June  16,  1998.

SFAS  No.  133  cannot  be  applied  retroactively  and  must  be applied to (a)
derivative instruments and (b) certain derivative instruments embedded in hybrid
contracts  that  were issued, acquired, or substantively modified after December
31,  1997 (and, at the company's election, before January 1, 1998).  The Company
has  not  yet  quantified  the  impact of adopting SFAS No. 133 on its financial
statements  and  has  not  determined the timing of or method of the adoption of
SFAS  No. 133.  However, as of December 31, 1999, the Company had no outstanding
derivative  instruments  or  embedded  derivatives.

RECLASSIFICATIONS

Certain  reclassifications have been made to prior years' consolidated financial
statements  to  conform  to  the  current  year  presentation.

USE  OF  ESTIMATES

The  preparation  of  financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect  the amounts reported in the financial statements and accompanying notes.
Actual  results  could  differ  from  those  estimates.

                      P.A.M. Transportation Services, Inc.
             Notes to Consolidated Financial Statements (continued)

<TABLE>
<CAPTION>

2.  ACCRUED  EXPENSES
                                                 December 31,
                                                 1999    1998
                                                --------------
                                                 (thousands)
<S>                                             <C>     <C>
Payroll                                         $1,812  $1,382
Taxes                                            1,645   1,094
Interest                                           256     163
Driver escrows                                     925     681
Insurance                                        1,330     461
Current portion of non-competition agreements      131     312
Self-insurance claims reserves                   1,575   1,085
                                                --------------
                                                $7,674  $5,178
                                                ==============
</TABLE>

<TABLE>
<CAPTION>


3.  LONG-TERM  DEBT

Long-term  debt  consists  of  the  following:
                                                                 December 31,
                                                                1999     1998
                                                              ----------------
                                                                 (thousands)
<S>                                                           <C>      <C>
Equipment financings (1)                                      $69,728  $55,655
Line of credit with a bank, due May 31, 2001 and
 collateralized by accounts receivable (2)                      3,949        -
Note payable (3)                                                3,348        -
Note payable (4)                                                  244      308
Capitalized lease obligations (5)                                   -    1,269
Insurance financings (6)                                          619      946
                                                              ----------------
                                                               77,888   58,178
Less current maturities                                        22,271   13,362
                                                              ----------------
                                                              $55,617  $44,816
                                                              ================
</TABLE>

(1)     Equipment  financings consist of installment obligations for revenue and
service  equipment  purchases,  payable  in various monthly installments through
2004,  at  a  weighted  average  interest  rate  of  6.73% and collateralized by
equipment  with  a net book value of approximately $74.7 million at December 31,
1999.
                      P.A.M. Transportation Services, Inc.
             Notes to Consolidated Financial Statements (continued)


3.  LONG-TERM  DEBT  (continued)

(2)     The line of credit agreement with a bank provides for maximum borrowings
of $15.0 million and contains restrictive covenants which require the Company to
maintain,  on  a  consolidated  basis,  a  net worth of $12.5 million and a debt
service  coverage  ratio of not less than 1.0 to 1.0.  Borrowings on the line of
credit  are  at  an interest rate of LIBOR as of the first day of the month plus
1.40%  (7.88% at December 31, 1999).  The line of credit agreement also includes
restrictions on dividend payments and certain corporate acts such as mergers and
consolidations.  The  Company  was  in  compliance  with  all  provisions of the
agreement  at  December  31,  1999.

(3)     6%  note  to the former owner of Decker Transport Company, Inc., payable
in  monthly  installments through January 2004 and secured by a letter of credit
from  a  bank  in  the  amount  of  $2,000,000.

(4)     8%  real  estate  note  to  the  former majority shareholder, payable in
monthly  installments  through  March  2003.

(5)     Capitalized  lease  obligations  terminated  during  1999.

(6)     Insurance financings consist of  a  premium  finance  agreement  with an
insurance  premium funding company, payable in monthly installments through 2001
at  an  interest  rate  of  6%.

Scheduled  annual  maturities on long-term debt outstanding at December 31, 1999
are:
                                                (thousands)
              2000                               $  22,271
              2001                                  23,744
              2002                                  20,557
              2003                                  10,175
              2004                                   1,141
                                                 ---------
                                                 $  77,888
                                                 =========
Interest  payments of approximately $5.5 million, $3.8 million, and $3.5 million
were  made  during  1999,  1998  and  1997,  respectively.

                      P.A.M. Transportation Services, Inc.
             Notes to Consolidated Financial Statements (continued)


4.  INCOME  TAXES

Under  SFAS  No.  109,  deferred  income  taxes  reflect  the net tax effects of
temporary differences between the carrying amounts of assets and liabilities for
financial  reporting  purposes and the carrying amounts for income tax purposes.

Significant  components of the Company's deferred tax liabilities and assets are
as  follows:

<TABLE>
<CAPTION>
                                             December 31,
                                          1999         1998
                                        ---------------------
                                              (thousands)
<S>                                     <C>           <C>
Deferred tax liabilities:
  Property and equipment                $25,628       $19,619
  Prepaid expenses                        1,558         1,275
Total deferred tax liabilities           27,186        20,894

Deferred tax assets:
  Net operating loss carryovers               -           792
  Alternative minimum tax credit          4,659         4,106
  Investment credit carryovers            1,096         1,096
  Allowance for doubtful accounts           249           220
  Vacation reserves                         278           277
  Self-insurance reserves                 1,105           560
  Non-competition agreement                 691           422
  Revenue recognition                       793           276
                                        ---------------------
Total deferred tax assets                 8,871         7,749
                                        ---------------------
Net deferred tax liabilities            $18,315       $13,145
                                        =====================
</TABLE>

The  reconciliation  between  the  effective  income  tax rate and the statutory
Federal  income  tax  rate  is  presented  in  the  following  table:

<TABLE>
<CAPTION>
                                                     Year Ended December 31,
                                                     1999     1998     1997
                                                   -------------------------
                                                          (thousands)
<S>                                                <C>      <C>      <C>
Income tax at the statutory Federal rate of 34%    $6,394   $4,499   $3,465
Nondeductible expenses                                330       60       63
State income taxes                                    (82)     (85)     (85)
Other                                                (255)    (329)    (412)
Federal income taxes                                6,387    4,145    3,031
State income taxes                                  1,149    1,013      861
                                                   -------------------------
Total income taxes                                 $7,536   $5,158   $3,892
                                                   =========================
Effective tax rate                                   40.1%    39.0%    38.2%
                                                   =========================
</TABLE>

                      P.A.M. Transportation Services, Inc.
             Notes to Consolidated Financial Statements (continued)


4.  INCOME  TAXES  (continued)

The  current  income  tax  provision  consists  of  the  following:

<TABLE>
<CAPTION>
                                                    1999     1998     1997
                                                   -------------------------
                                                          (thousands)
<S>                                                <C>      <C>      <C>
Federal                                            $1,866   $1,073   $  870
State                                                 241      250      250
                                                   -------------------------
                                                   $2,107   $1,323   $1,120
                                                   =========================
</TABLE>

As  of  December  31,  1999, the Company has investment tax credit carryovers of
approximately  $1.1  million,  which  begin  expiring in 2000. The current taxes
provided  in 1999, 1998 and 1997 result from alternative minimum taxable income.
The Company has alternative minimum tax credits of approximately $4.7 million at
December  31,  1999,  which  carryover  indefinitely.

Income  taxes  paid  totaled approximately $2,200,000, $1,200,000 and $1,300,000
for  the  years  ended  December  31,  1999,  1998  and  1997,  respectively.

5.  SHAREHOLDERS'  EQUITY

The  Company  maintains  an  incentive  stock  option plan, a nonqualified stock
option  plan,  and  an employee stock option plan for the issuance of options to
directors, officers, key employees and others.  During 1998, the incentive stock
option  plan  was  amended to include an additional 400,000 shares available for
future granting.  The option price under these plans is the fair market value of
the  stock at the date the options were granted, ranging from $5.75 to $10.63 as
of  December  31, 1999.  At December 31, 1999, approximately 650,000 shares were
available  for  granting  future  options.

Outstanding  incentive  stock options and employee stock options at December 31,
1999,  must  be  exercised  within  six years from the date of grant and vest in
increments  of 20% each year. Outstanding nonqualified stock options at December
31,  1999,  must  be exercised within five to six years and certain nonqualified
options  may  not  be  exercised  within  one  year  of  the  date  of  grant.

                      P.A.M. Transportation Services, Inc.
             Notes to Consolidated Financial Statements (continued)


5.  SHAREHOLDERS'  EQUITY  (continued)

Transactions  in  stock  options  under  these  plans are summarized as follows:

<TABLE>
<CAPTION>
                                           Shares
                                           Under
                                           Option    Price Range
                                          -----------------------
<S>                                       <C>        <C>
Outstanding at December 31, 1996           491,600   $ 2.38-$7.38
  Granted                                    3,000   $ 6.00
  Exercised                               (151,350)  $ 2.38-$6.00
  Canceled                                    (400)  $ 2.38-$6.75
                                          ------------------------
Outstanding at December 31, 1997           342,850   $ 2.38-$7.38
  Granted                                   33,000   $ 9.25-$10.63
  Exercised                                (49,800)  $ 2.38-$5.75
                                          ------------------------
Outstanding at December 31, 1998           326,050   $ 2.38-$10.63
  Granted                                   55,000   $ 8.63-$10.25
  Exercised                               (115,000)  $ 2.38-$6.00
  Canceled                                  (1,050)  $ 2.38
                                          ------------------------
Outstanding at December 31, 1999           265,000   $ 5.75-$10.63
                                          ========================

Options exercisable at December 31, 1999   210,000
                                          =========
</TABLE>

The following is a summary of stock options outstanding as of December 31, 1999:

<TABLE>
<CAPTION>
                         Weighted
              Option     Average
  Options    Exercise    Remaining    Options
Outstanding   Price      Years      Exercisable
-----------------------------------------------
<S>          <C>         <C>        <C>
143,000      $   5.75      1.6          143,000
  2,000      $   6.00      3.2            2,000
 25,000      $   6.32      1.5           25,000
  5,000      $   6.50      2.4            4,000
  2,000      $   6.75      1.2            2,000
 10,000      $   8.63      5.2           10,000
 30,000      $   9.25      4.6           12,000
 45,000      $  10.25      5.6            9,000
  3,000      $  10.63      4.2            3,000
-----------------------------------------------
265,000                                 210,000
===============================================
</TABLE>

                      P.A.M. Transportation Services, Inc.
             Notes to Consolidated Financial Statements (continued)


5.  SHAREHOLDERS'  EQUITY  (continued)

The  Company  adopted  the  disclosure-only provisions of Statement of Financial
Accounting Standards No. 123, Accounting for Stock-Based Compensation ("SFAS No.
123").  Accordingly,  no  compensation  cost  has  been recognized for the stock
option  plans.  Had  compensation cost for the Company's stock option plans been
determined  consistent  with  the  provisions of SFAS No. 123, the Company's net
income  and  earnings per share would have been reduced to the pro forma amounts
indicated  below:

<TABLE>
<CAPTION>
                                  1999       1998
                                 -----------------
                                     (thousands)
<S>                              <C>        <C>
Net income:
 As reported                     $11,269    $8,073
 Pro forma                       $11,076    $7,941

Earnings per share as reported:
 Basic                           $1.34        $.97
 Diluted                         $1.33        $.96
Pro forma earnings per share:
 Basic                           $1.32        $.96
 Diluted                         $1.31        $.94

</TABLE>

The  fair value of each option grant is estimated on the date of grant using the
Black-Scholes  option  pricing  model  with  the  following  weighted  average
assumptions:  dividend  yield  of  0%;  expected volatility of 31.63% to 76.64%;
risk-free  interest  rate  of  5.25% to 7.02%; and expected lives of five years.

6.  EARNINGS  PER  SHARE

The  Company  applies  Financial  Accounting  Standards Board Statement No. 128,
Earnings  Per  Share,  for  computing  and presenting earnings per share.  Basic
earnings  per  common share were computed by dividing the income by the weighted
average  number  of  shares outstanding during the period.  Diluted earnings per
share  were  calculated  as  follows:

                      P.A.M. Transportation Services, Inc.
             Notes to Consolidated Financial Statements (continued)


6.  EARNINGS  PER  SHARE  (continued)

<TABLE>
<CAPTION>
                                                                     1999        1998        1997
                                                                   --------------------------------
                                                                  (thousands, except per share data)
<S>                                                                <C>          <C>         <C>
Actual net income (A)                                              $11,269      $8,073      $6,300
                                                                   ================================

Assumed exercise of options and warrants                               262         317         348
Application of assumed proceeds ($1,621,
  $1,606 and $1,972, respectively)
  toward repurchase of stock at an average
  market price of $9.719, $8.958 and
  $7.888 per share, respectively.                                     (167)       (179)       (250)
                                                                   --------------------------------
Net additional shares issuable                                          95         138          98
                                                                   ================================
Adjustment of shares outstanding:
  Weighted average common shares outstanding                         8,393       8,306       8,192
  Net additional shares issuable                                        95         138          98
                                                                   --------------------------------
  Adjusted shares outstanding (B)                                    8,488       8,444       8,290
                                                                   ================================
Diluted earnings per common share - (A) divided by (B)             $  1.33      $  .96      $  .76
                                                                   ================================
</TABLE>

7.  RELATED  PARTY  TRANSACTIONS

The  Company  provides  motor  carrier  services to an affiliate of its majority
shareholder. Revenues from these transactions totaled approximately $.3 million,
$.5  million  and  $1.9  million  for  1999,  1998,  and  1997,  respectively.

Payments made by the Company to an affiliate of the majority shareholder for the
reimbursement  of operating and other expenses paid on behalf of the Company and
debt  repayments  made  on  notes payable to the affiliate totaled approximately
$1.2  million,  $1.1  million  and  $.9  million  in  1999,  1998,  and  1997,
respectively.

Trade  accounts payable at December 31, 1999, includes a payable to an affiliate
of  the  majority  shareholder  of  $117,020.

                      P.A.M. Transportation Services, Inc.
             Notes to Consolidated Financial Statements (continued)


8.  LEASES  AND  COMMITMENTS

No  capital  lease  obligations  were  entered  into during 1999 or 1998 and all
previous  capital  lease commitments terminated during 1999.  Lease amortization
is  included  in  depreciation  expense.

9.  PROFIT  SHARING  PLAN

P.A.M.  Transport,  Inc., a subsidiary of the Company, sponsors a profit sharing
plan for the benefit of all eligible employees. The plan qualifies under Section
401(k)  of the Internal Revenue Code thereby allowing eligible employees to make
tax  deductible  contributions  to  the  plan.  The  plan  provides for employer
matching contributions of 50% of each participant's voluntary contribution up to
3%  of  the  participant's  compensation.

Decker  Transport  Company, Inc., a subsidiary of the Company, sponsors a 401(k)
Profit  Sharing Plan, which is a defined contribution plan covering all eligible
employees.  Subsequent  to  1999,  Decker's  Plan  was  merged  with  the P.A.M.
Transport,  Inc.  401(k)  Retirement  Savings  Plan  and  Trust.

Total  contributions to the above plans totaled approximately $200,000, $133,000
and  $92,000  in  1999,  1998  and  1997,  respectively.

10.  LITIGATION

The  Company  is  not  a party to any pending legal proceedings which management
believes  to  be  material to the financial position or results of operations of
the Company. The Company maintains liability insurance against risks arising out
of  the  normal  course  of  its  business.

                      P.A.M. Transportation Services, Inc.
             Notes to Consolidated Financial Statements (continued)


11.  QUARTERLY  RESULTS  OF  OPERATIONS  (Unaudited)

The  tables  below  present  quarterly  financial information for 1999 and 1998:

<TABLE>
<CAPTION>
                                                                  1999
                                                           Three Months Ended
                                       March 31         June 30       September 30      December 31
                                    ---------------------------------------------------------------
                                                   (thousands, except per share data)
<S>                                 <C>              <C>              <C>              <C>
Operating revenues                  $   51,391       $   53,675       $   51,284       $   51,032
Operating expenses                      45,241           46,608           45,228           45,850
                                    ---------------------------------------------------------------
Operating income                         6,150            7,067            6,056            5,182
Other expenses - net                     1,404            1,479            1,413            1,354
Income taxes                             1,938            2,294            1,849            1,455
                                    ---------------------------------------------------------------
Net income                          $    2,808       $    3,294       $    2,794       $    2,373
                                    ===============================================================
Net income per common share:
     Basic                          $      .34       $      .39       $      .33       $      .28
                                    ===============================================================
     Diluted                        $      .33       $      .39       $      .33       $      .28
                                    ===============================================================
Average common shares outstanding:
     Basic                               8,342            8,378            8,421            8,445
                                    ===============================================================
     Diluted                             8,441            8,458            8,527            8,535
                                    ===============================================================

</TABLE>

<TABLE>
<CAPTION>
                                                                  1998
                                                           Three Months Ended
                                       March 31         June 30       September 30      December 31
                                    ---------------------------------------------------------------
                                                   (thousands, except per share data)
<S>                                 <C>              <C>              <C>              <C>
Operating revenues                  $   35,440       $   36,012       $   34,131       $   37,581
Operating expenses                      31,371           31,088           30,122           33,523
                                    ---------------------------------------------------------------
Operating income                         4,069            4,924            4,009            4,058
Other expenses - net                       829            1,027              981              992
Income taxes                             1,296            1,481            1,175            1,206
                                    ---------------------------------------------------------------
Net income                          $    1,944       $    2,416       $    1,853       $    1,860
                                    ===============================================================
Net income per common share:
     Basic                          $      .23       $      .29       $      .22       $      .22
                                    ===============================================================
     Diluted                        $      .23       $      .29       $      .22       $      .22
                                    ===============================================================
Average common shares outstanding:
     Basic                               8,286            8,300            8,313            8,325
                                    ===============================================================
     Diluted                             8,443            8,473            8,421            8,410
                                    ===============================================================

</TABLE>

                      P.A.M. Transportation Services, Inc.
             Notes to Consolidated Financial Statements (continued)

12.  FAIR  VALUE  OF  FINANCIAL  INSTRUMENTS

The  following  methods  and  assumptions were used by the Company in estimating
fair  value  disclosures  for  financial  instruments:

Cash  and  cash  equivalents - The carrying amount reported in the balance sheet
for  cash  and  cash  equivalents  approximates  fair  value.

Long-term  debt  - The fair values of the Company's long-term debt are estimated
using  discounted cash flow analyses, based on the Company's current incremental
borrowing  rates  for  similar  types  of  borrowing  arrangements.

Line  of  credit  - The carrying amount for the line of credit approximates fair
value.

The  carrying  amounts and fair values of the Company's financial instruments at
December  31  are  as  follows  (in  thousands):

<TABLE>
<CAPTION>
                                   1999                   1998
----------------------------------------------------------------------
                           Carrying     Fair      Carrying     Fair
                            Amount      Value      Amount      Value
----------------------------------------------------------------------
<S>                        <C>         <C>        <C>         <C>
Cash and cash equivalents  $ 3,557     $ 3,557    $ 5,963     $ 5,963
Long-term debt              73,939      73,705     58,178      58,567
Line of credit               3,949       3,949          -           -
======================================================================
</TABLE>

13.  ACQUISITION

On January 11, 1999, the Company closed the purchase of substantially all of the
assets  and  assumed  certain  liabilities  of  Decker  Transport  Co.,  Inc., a
truckload  carrier  located  in  New Jersey.  The Company acquired assets, which
consisted primarily of revenue equipment and trade accounts receivable, totaling
approximately  $21.0  million and assumed liabilities, which consisted primarily
of  installment  note  obligations  and  trade  accounts  payable,  totaling
approximately  $14.1  million.  In connection with this acquisition, the Company
issued  to  the  seller  an installment note in the amount of $4.0 million at an
interest  rate  of  6%  and  paid  cash  of approximately $9.8 million utilizing
existing  cash  and  its  line  of  credit.

The  purchase  price has been allocated to assets and liabilities based on their
estimated fair values as of the date of acquisition.  Goodwill was recorded as a
result  of  the  purchase  allocation  and  it is being amortized over a 25-year
period.  The  Company  also  entered  into three-year Non-competition Agreements
with  eight  shareholders  or  officers/employees  of Decker Transport Co., Inc.

                      P.A.M. Transportation Services, Inc.
             Notes to Consolidated Financial Statements (continued)


13.  ACQUISITION  (continued)

The  acquisition  has  been  accounted  for under the purchase method, effective
January  11,  1999,  with  the  operations  of  Decker included in the Company's
financial  statements since that date.  Actual fiscal 1999 operating results are
representative  of  1999 pro forma amounts.  The following fiscal 1998 pro forma
financial  information is based on the audited consolidated financial statements
of P.A.M. Transportation Services, Inc. for the year ended December 31, 1998 and
from the audited combined financial statements of Decker Transport Co., Inc. and
Van  Houten  Ltd.  for  the  year ended December 31, 1998 and adjusted as if the
acquisition  had occurred on January 1, 1998, with certain assumptions made that
management  believes  to  be  reasonable.  This  information  is for comparative
purposes only and does not purport to be indicative of the results of operations
that  would have occurred had the transaction been completed at the beginning of
the  period  or  indicative  of  the  results  that  may  occur  in  the future.

<TABLE>
<CAPTION>
                                           1998
                                        (unaudited)
                                    ------------------
                                    (thousands, except
                                      per share data)
<S>                                 <C>
Operating revenue                      $   191,616
Income from operations                      17,402
Income before income tax provision          11,813
Net income                                   7,239
Earnings per share -basic                      .87
Earnings per share -diluted                    .86

Weighted average shares -basic               8,306
Weighted average shares -diluted             8,444
</TABLE>

                                    PART III

     Except  as  to  information  with  respect  to  executive officers which is
contained  in a separate heading under Item 1 to this Form 10-K, the information
required  by  Part III of Form 10-K is, pursuant to General Instruction G (3) of
Form  10-K,  incorporated  by  reference  from  the  Company's  definitive proxy
statement  to  be  filed  pursuant  to  Regulation  14A for the Company's Annual
Meeting  of  Shareholders to be held on June 15, 2000.  The Company will, within
120  days  of  the end of its fiscal year, file with the Securities and Exchange
Commission  a  definitive  proxy  statement  pursuant  to  Regulation  14A.

ITEM  10.  DIRECTORS  AND  EXECUTIVE  OFFICERS  OF  THE  REGISTRANT.
--------------------------------------------------------------------

     The  information  responsive to this item is incorporated by reference from
the  section  entitled "Election of Directors" contained in the proxy statement.

ITEM  11.  EXECUTIVE  COMPENSATION.
-----------------------------------

     The  information  responsive to this item is incorporated by reference from
the  section entitled "Executive Compensation" contained in the proxy statement.

ITEM  12.  SECURITY  OWNERSHIP  OF  CERTAIN  BENEFICIAL  OWNERS  AND MANAGEMENT.
--------------------------------------------------------------------------------

     The  information  responsive to this item is incorporated by reference from
the  section  entitled  "Security  Ownership  of  Certain  Beneficial Owners and
Management"  contained  in  the  proxy  statement.

ITEM  13.  CERTAIN  RELATIONSHIPS  AND  RELATED  TRANSACTIONS.
--------------------------------------------------------------

     The  information  responsive to this item is incorporated by reference from
the  section entitled "Certain Relationships and Related Transactions" contained
in  the  proxy  statement.


                                     PART IV

ITEM  14.  EXHIBITS,  FINANCIAL  STATEMENT  SCHEDULES,  AND REPORTS ON FORM 8-K.
--------------------------------------------------------------------------------

(a)1.   Financial  Statements  and  Auditors'  Report.
        ----------------------------------------------

      The following financial statements and auditors' report have been filed as
Item  8  in  Part  II  of  this  report:

      Report  of  Independent  Public  Accountants

      Consolidated  Balance  Sheets  -  December  31,  1999  and  1998

      Consolidated Statements of Income  -  Years  ended  December  31,  1999,
      1998  and  1997

      Consolidated Statements of Shareholders' Equity  -  Years ended  December
      31,  1999,  1998  and  1997

      Consolidated Statements of Cash Flows  -  Years ended December 31,  1999,
      1998  and  1997

      Notes  to  Consolidated  Financial  Statements

(a)2.   Financial  Statement  Schedules.
        --------------------------------

     The  following  supporting  financial statement schedule is filed with this
report:

     II - Valuation  and  Qualifying  Accounts - Years  Ended December 31, 1999,
          1998 and 1997

     All other schedules are omitted as the required information is inapplicable
or  the  information  is  presented  in the consolidated financial statements or
related notes.

(a)3.   Exhibits.
        ---------

     The  following  exhibits  are  filed with or incorporated by reference into
this  report.  The  exhibits  which  are  denominated  by  an  asterisk (*) were
previously  filed  as  a  part of, and are hereby incorporated by reference from
either (i) the Form S-1 Registration Statement under the Securities Act of 1933,
as  filed  with  the  Securities  and  Exchange  Commission  on  July  30, 1986,
Registration  No.  33-7618,  as amended on August 8, 1986, September 3, 1986 and
September  10,  1986  ("1986  S-1"); (ii) the Annual Report on Form 10-K for the
year ended December 31, 1987 ("1987 10-K"); (iii) the Annual Report on Form 10-K
for the year ended December 31, 1992 ("1992 10-K"); (iv) the Quarterly Report on
Form  10-Q  for  the  quarter  ended  June  30,  1994  ("6/30/94 10-Q"); (v) the
Quarterly  Report  on  Form  10-Q  for the quarter ended June 30, 1995 ("6/30/95
10-Q");  (vi)  the Quarterly Report on Form 10-Q for the quarter ended September
30, 1996 (9/30/96 10-Q); (vii) the Annual Report on Form 10-K for the year ended
December  31,  1996  ("1996 10-K"); (viii) the Quarterly Report on Form 10-Q for
the  quarter ended June 30, 1998 ("6/30/98 10-Q"); or (ix) the Current Report on
Form  8-K  dated  January  11,  1999  ("1/11/99  8-K").

Exhibit#                              Description  of  Exhibit
--------     -------------------------------------------------------------------
*2.1         Asset  Purchase  Agreement,  dated  as  of January 11, 1999, by and
             among  P.A.M. NewCo., Inc. (a  wholly-owned  subsidiary  of  the
             Registrant), Decker  Transport  Co.  Inc.,  Van  Houten  Ltd.  and
             William Van Houten (Exh. 2.1, 1/11/99 8-K)

*3.1         Amended  and  Restated  Certificate  of  Incorporation  of  the
             Registrant  (Exh.  3.1,  1986  S-1)

*3.1.1       Amendment to Certificate of Incorporation dated June 24, 1987
             (Exh.  3.1.1,  1987  10-K)

*3.2         Amended and Restated By-Laws of the Registrant (Exh. 3.2, 1986 S-1)

*3.2.1       Amendment  to  Article I,  Section 3 of Bylaws of Registrant (Exh.
             3.2.1,  1986  S-1)

*3.2.2       Amendments to Bylaws of Registrant adopted May 7, 1987 (Exh. 3.2.2,
             1987  10-K)

*3.2.3       Amendments  to  Bylaws  of Registrant adopted January 4, 1993 (Exh.
             3.2.3,  1992  10-K)

*4.1         Specimen  Stock  Certificate  (Exh.  4.1,  1986  S-1)

*4.2         Loan  Agreement  dated  July 26,  1994  among  First Tennessee Bank
             National  Association,  Registrant  and  P.A.M.  Transport,  Inc.
             together with Promissory  Note  (Exh.  4.1,  6/30/94  10-Q)

*4.2.1       Security  Agreement  dated  July  26,  1994 between First Tennessee
             Bank  National  Association  and  P.A.M.  Transport, Inc.(Exh. 4.2,
             6/30/94  10-Q)

*4.3         First  Amendment  to Loan Agreement date June 27, 1995 by and among
             P.A.M.  Transport,  Inc., First Tennessee Bank National Association
             and P.A.M. Transportation Services, Inc., together with  Promissory
             Note  in  the  principal  amount of $2,500,000 (Exh. 4.1.1, 6/30/95
             10-Q)

*4.3.1       First  Amendment  to  Security Agreement dated June 28, 1995 by and
             between  P.A.M.  Transport,  Inc. and First Tennessee Bank National
             Association (Exh.  4.2.2,  6/30/95  10-Q)

*4.3.2       Security  Agreement  dated  June  27,  1995  by and between Choctaw
             Express,  Inc.  and First Tennessee Bank National Association (Exh.
             4.1.3, 6/30/95 10-Q)

*4.3.3       Guaranty  Agreement  of  P.A.M. Transportation Services, Inc. dated
             June 27, 1995 in favor of First Tennessee Bank National Association
             respecting $10,000,000 line of credit (Exh.  4.1.4,  6/30/95  10-Q)

*4.4         Second  Amendment to Loan Agreement dated July 3, 1996 by and among
             P.A.M.  Transport,  Inc., First Tennessee Bank National Association
             and P.A.M. Transportation Services, Inc., together with  Promissory
             Note in the principal amount of  $5,000,000  (Exh.  4.1.1,  9/30/96
             10-Q)

*4.4.1       Second  Amendment  to  Security Agreement dated July 3, 1996 by and
             between  P.A.M.  Transport,  Inc. and First Tennessee National Bank
             Association (Exh.  4.1.2,  9/30/96  10-Q)

*4.4.2       First  Amendment  to Security  Agreement  dated July 3, 1996 by and
             between  Choctaw  Express,  Inc.  and First Tennessee Bank National
             Association(Exh.  4.1.3,  9/30/96  10-Q)

*4.4.3       Security  Agreement dated July 3, 1996 by and between Allen Freight
             Services,  Inc.  and  First  Tennessee  Bank  National  Association
             (Exh. 4.1.4,  9/30/96  10-Q)

             No  other  long-term  debt  instrument  of  the  Registrant  or its
             subsidiaries  authorizes  indebtedness  exceeding  10% of the total
             assets of the Registrant and its  subsidiaries  on  a  consolidated
             basis  and  the  Registrant  hereby  undertakes  to  provide  the
             Commission  upon  request  with  any long-term debt instrument not
             filed herewith.

*10.1        Employment  Agreement  between the Registrant  and Robert W. Weaver
             dated  July  1,  1998  (Exh.  10.1,  6/30/98  10-Q)

*10.2        1995  Stock  Option  Plan, effective June 29, 1995 (Exh. 10.6, 1996
             10-K)

 21.1        Subsidiaries  of  the  Registrant

 23.1        Consent  of  Arthur  Andersen  LLP

 27          Financial  Data  Schedule

(b)  Reports  on  Form  8-K.
     -----------------------

     No  reports on Form 8-K were filed during the fourth quarter ended December
31,  1999.


<TABLE>

                                         P.A.M. TRANSPORTATION SERVICES, INC.
                                          VALUATION AND QUALIFYING ACCOUNTS

                                     Years Ended December 31, 1999, 1998 and 1997

<CAPTION>
                                                      ADDITIONS
                                                      ---------
                                                                   Charged to
                                         Balance at   Charged to     Other                    Balance
                                          Beginning   Costs and     Accounts    Deductions     at End
               Description                of Period    Expenses    (Describe)   (Describe)   of Period
               -----------               ----------   ----------   ----------   ----------   ---------
<S>                                      <C>          <C>          <C>          <C>          <C>
1999 - Allowance for doubtful accounts     $579,333           --      $75,710           --    $655,043
1998 - Allowance for doubtful accounts      579,333           --           --           --     579,333
1997 - Allowance for doubtful accounts      579,333           --           --           --     579,333
</TABLE>


SIGNATURES
----------

     Pursuant  to  the requirements of Section 13 of the Securities Exchange Act
of 1934, the Registrant has caused this report to be signed on its behalf by the
undersigned,  thereunto  duly  authorized.

                                            P.A.M. TRANSPORTATION SERVICES, INC.


Dated: March 29, 2000         By:   /s/ Robert W. Weaver
                                   -----------------------------
                                   ROBERT W. WEAVER
                                   President and Chief Executive Officer
                                   (principal  executive  officer)

Dated: March 29, 2000         By:   /s/ Larry J. Goddard
                                   -----------------------------
                                   LARRY J. GODDARD
                                   Vice President - Finance, Chief Financial
                                   Officer, Secretary and Treasurer (principal
                                   financial and accounting officer)

     Pursuant  to  the requirements of the Securities Exchange Act of 1934, this
report  has been signed by the following persons on behalf of the Registrant and
in  the  capacities  and  on  the  dates  indicated:

                                            P.A.M. TRANSPORTATION SERVICES, INC.


Dated: March 29, 2000         By:    /s/ Robert W. Weaver
                                    ----------------------------
                                    ROBERT W. WEAVER
                                    President and Chief Executive Officer,
                                    Director


Dated: March 29, 2000         By:    /s/ Matthew T. Moroun
                                    ----------------------------
                                    MATTHEW T. MOROUN, Director


Dated: March 29, 2000         By:    /s/ Daniel C. Sullivan
                                    ----------------------------
                                    DANIEL C. SULLIVAN, Director


Dated: March 29, 2000         By:    /s/ Charles F. Wilkins
                                    ----------------------------
                                    CHARLES F. WILKINS, Director


Dated: March 29, 2000         By:    /s/ Frederick P. Calderone
                                    ----------------------------
                                    FREDERICK P. CALDERONE, Director


Dated: March 29, 2000         By:    /s/  Joseph J. Casaroll
                                    ----------------------------
                                    JOSEPH J. CASAROLL, Director


EXHIBIT INDEX


Exhibit No.                      Description
------------          ----------------------------------
21.1                  Subsidiaries of the Registrant
23.1                  Consent of Arthur Anderson LLP
27                    Financial Data Schedule