UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                            Washington, DC 20549-1004
                      ------------------------------------

                                    FORM 10-Q

                                   (Mark One)
(X)      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 1998

(  )     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934


                         Commission File Number 0-27208

                       Simon Transportation Services Inc.
             (Exact name of registrant as specified in its charter)



              Nevada                                    87-0545608
(State or other jurisdiction of          (I.R.S. employer identification number)
 incorporation or organization)


                              5175 West 2100 South
                          West Valley City, Utah 84120
                                (801) 924-7000
              (Address, including zip code, and telephone number,
                      including area code, of registrant's
                           principal executive office)


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 the  filing
requirements for at least the past 90 days.


                                    YES X NO


Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest practicable date (April 30, 1998).

             Class A Common Stock, $.01 par value: 5,372,873 shares
              Class B Common Stock, $.01 par value: 913,751 shares

                                                     Exhibit Index is on Page 12


<PAGE>



                                    SIMON TRANSPORTATION SERVICES INC.
                                            TABLE OF CONTENTS

                                                  PART I

                                          FINANCIAL INFORMATION


<TABLE>
<S>          <C>                                                                                        <C>
                                                                                                         PAGE
                                                                                                        NUMBER

Item 1.      Financial Statements:

             Condensed consolidated statements of financial position as of
                      March 31, 1998 and September 30, 1997                                               3

             Condensed consolidated statements of operations for the three months and six
                      months ended March 31, 1998 and 1997                                                4

             Condensed consolidated statements of cash flows for the six months ended March
                      31, 1998 and 1997                                                                   5

             Notes to condensed consolidated financial statements                                         6

Item 2.      Management's discussion and analysis of financial condition and results of
                      operations                                                                          7




                                                 PART II

                                            OTHER INFORMATION



Item 1.      Legal Proceedings                                                                           12

Item 2.      Changes in Securities                                                                       12

Item 3.      Defaults Upon Senior Securities                                                             12

Item 4.      Submission of Matters to a Vote of Security Holders                                         12

Item 5.      Other Information                                                                           12

Item 6.      Exhibits and Reports on Form 8-K                                                            12

</TABLE>
<PAGE>

                         SIMON TRANSPORTATION SERVICES INC.
              CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

                                      ASSETS

<TABLE>
<S>                                                                    <C>                          <C>                        
                                                                                March 31, 1998             September 30, 1997
                                                                                --------------             ------------------
                                                                             (Unaudited)
Current Assets:
         Cash                                                                   $   10,144,044               $   12,766,001
         Receivables, net of allowance for doubtful accounts of
         $99,000 and $62,000, respectively                                          18,869,839                   20,712,286
         Operating supplies                                                            923,417                      752,213
         Prepaid expenses and other                                                  4,263,645                    2,193,950
                                                                       ------------------------     ------------------------
                  Total current assets                                              34,200,945                   36,424,450
                                                                       ------------------------     ------------------------

Property and Equipment, at cost:
         Land                                                                        7,646,922                    7,632,711
         Revenue equipment                                                          49,697,517                   59,392,072
         Buildings and improvements                                                 18,094,352                   14,321,869
         Office furniture and equipment                                              7,890,524                    5,974,291
                                                                       ------------------------     ------------------------
                                                                                    83,329,315                   87,320,943
         Less accumulated depreciation and amortization                            (16,502,447)                 (16,166,473)
                                                                       ------------------------     ------------------------
                                                                                    66,826,868                   71,154,470
                                                                       ------------------------     ------------------------
Other Assets                                                                           205,770                      125,450
                                                                       ========================     ========================
                                                                                $  101,233,583               $  107,704,370
                                                                       ========================     ========================

                                           LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
         Current portion of long-term debt                                      $    7,533,549               $    6,382,697
         Current portion of capitalized lease obligations                            3,807,096                    5,346,645
         Accounts payable                                                            4,265,450                    3,593,420
         Accrued liabilities                                                         2,076,840                    3,957,055
         Accrued claims payable                                                      1,564,331                    1,259,674
                                                                       ------------------------     ------------------------
                  Total current liabilities                                         19,247,266                   20,539,491
                                                                       ------------------------     ------------------------

Long-Term Debt, net of current portion                                              12,904,418                   14,638,389
                                                                       ------------------------     ------------------------
Capitalized Lease Obligations, net of current portion                                2,659,730                    6,423,385
                                                                       ------------------------     ------------------------
Deferred Income Taxes                                                                6,254,445                    6,254,445
                                                                       ------------------------     ------------------------

Stockholders' Equity:
         Preferred stock, $.01 par value, 5,000,000 shares
         authorized, none issued                                                            --                           --
         Class A common stock, $.01 par value, 20,000,000     shares
         authorized, 5,372,803 and 5,320,313         shares issued,
         respectively                                                                   53,728                       53,203
         Class B common stock, $.01 par value, 5,000,000      shares
         authorized, 913,751 and 962,661    shares issued,                               9,138                        9,627
         respectively
         Additional paid-in capital                                                 48,265,792                   48,233,608
         Retained earnings                                                          11,839,066                   11,552,222
                                                                       ------------------------     ------------------------
                  Total stockholders' equity                                        60,167,724                   59,848,660
                                                                       ------------------------     ------------------------
                                                                                $  101,233,583               $  107,704,370
                                                                       ========================     ========================
<FN>

                         The  accompanying   notes  to  condensed   consolidated
                          financial  statements  are an  integral  part of these
                          condensed consolidated financial statements.
</FN>
</TABLE>


<PAGE>


                       SIMON TRANSPORTATION SERVICES INC.
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (Unaudited)

<TABLE>

<S>                                                       <C>                 <C>                <C>               <C>
                                                                 For the Three Months Ended           For the Six Months Ended
                                                          --------------------------------------------------------------------------
                                                            March 31, 1998     March 31, 1997     March 31, 1998      March 31, 1997
                                                            --------------     --------------     --------------      --------------

Operating Revenue                                          $    46,149,338    $    35,764,826     $   93,155,831      $   69,931,019
                                                          --------------------------------------------------------- ----------------

Operating Expenses:
         Salaries, wages, and benefits                          19,351,827         13,870,537         37,363,142          27,042,345
         Fuel & fuel taxes                                       8,262,994          6,962,624         17,360,048          13,620,260
         Operating supplies and expenses                         7,798,494          4,483,082         13,580,171           8,833,581
         Taxes and licenses                                      1,546,438          1,052,165          3,356,344           2,488,630
         Insurance and claims                                    1,898,971            834,118          2,919,698           1,460,478
         Communications and utilities                            1,060,020            604,713          1,845,162           1,134,717
         Depreciation and amortization                           1,135,528          1,286,521          2,338,682           2,800,066
         Rent                                                    7,200,228          4,208,799         13,112,175           7,655,406
                                                          --------------------------------------------------------- ----------------
                  Total operating expenses                      48,254,500         33,302,559         91,875,422          65,035,483
                                                          --------------------------------------------------------- ----------------
                  Operating earnings (loss)                     (2,105,162)         2,462,267          1,280,409           4,895,536
         Net interest expense                                      430,370            237,298            819,245             683,921
                                                          --------------------------------------------------------- ----------------
Earnings (loss) before provision for income taxes               (2,535,532)         2,224,969            461,164           4,211,615
Provision (benefit) for income taxes (Note 3)                     (958,431)           841,038            174,320           1,591,990
                                                          ========================================================= ================
Net earnings (loss)                                        $    (1,577,101)   $     1,383,931     $      286,844      $    2,619,625
                                                          ========================================================= ================

Net earnings (loss) per common share
         Basic                                             $         (0.25)   $          0.25     $         0.05      $         0.51
                                                          ========================================================= ================
         Diluted                                           $         (0.25)   $          0.25     $         0.04      $         0.50
                                                          ========================================================= ================

Weighted average common shares outstanding
         Basic                                                   6,286,202          5,528,261          6,285,301           5,131,394
                                                          ========================================================= ================
         Diluted                                                 6,286,202          5,640,626          6,437,440           5,243,759
                                                          ========================================================= ================
<FN>

                         The  accompanying   notes  to  condensed   consolidated
                          financial  statements  are an  integral  part of these
                          condensed consolidated financial statements.

</FN>
</TABLE>


<PAGE>


                        SIMON TRANSPORTATION SERVICES INC.
                  CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
<TABLE>
<S>                                                                                    <C>                    <C>

                                                                                            For the Six Months Ended
                                                                                ---------------------------------------------
                                                                                       March 31, 1998         March 31, 1997

Cash Flows From Operating Activities:
     Net earnings                                                                      $      286,844         $    2,619,625
     Adjustments to reconcile net earnings to net cash
         provided by operating activities
              Depreciation and amortization                                                 2,338,682              2,800,066
              Changes in operating assets and liabilities:
                  Decrease (increase) in receivables, net                                   1,363,947               (220,905)
                  Increase in operating supplies                                             (171,204)              (354,523)
                  Increase in prepaid expenses and other                                   (2,069,695)            (1,109,585)
                  (Increase) decrease in other assets                                         (80,320)               193,195
                  Increase in accounts payable                                                672,030                585,624
                  Decrease in accrued liabilities                                          (1,880,215)              (600,770)
                  Increase (decrease) in accrued claims payable                               304,657                (80,149)
                                                                                ---------------------------------------------
                      Net cash provided by operating activities                               764,726              3,832,578
                                                                                ---------------------------------------------

Cash Flows From Investing Activities:
     Purchase of property and equipment                                                    (6,797,880)           (12,901,451)
     Proceeds from the sale of property and equipment                                       8,786,800              5,147,150
                                                                                ---------------------------------------------
                      Net cash provided by (used in) investing activities                   1,988,920             (7,754,301)
                                                                                ---------------------------------------------

Cash Flows From Financing Activities:
     Proceeds from issuance of long-term debt                                               2,900,000              5,757,244
     Principal payments on long-term debt                                                  (3,483,119)            (1,398,301)
     Principal payments under capitalized lease obligations                                (5,303,204)            (2,127,529)
     Decrease in receivable from sale of equipment                                            478,500                     --
     Net proceeds from issuance of Class A common stock                                        32,220             22,941,531
                                                                                ---------------------------------------------
                      Net cash (used in) provided by financing activities                  (5,375,603)            25,172,945
                                                                                ---------------------------------------------

Net (Decrease) Increase In Cash                                                            (2,621,957)            21,251,222
Cash at Beginning of Period                                                                12,766,001              5,571,431
                                                                                ---------------------------------------------

Cash at End of Period                                                                  $   10,144,044          $  26,822,653
                                                                                =============================================

Supplemental Disclosure of Cash Flow Information:
         Cash paid during the period for interest                                      $    1,006,188          $     957,861
         Cash paid during the period for income taxes                                         667,137              2,122,344

Supplemental Schedule of Noncash Investing and Financing Activities:
         Sale of equipment in exchange for receivable paid after
              period end                                                                      610,000                227,850

<FN>

                         The  accompanying   notes  to  condensed   consolidated
                          financial  statements  are an  integral  part of these
                          condensed consolidated financial statements.

</FN>
</TABLE>



<PAGE>



                             
                            SIMON TRANSPORTATION SERVICES INC.

                   NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                      (Unaudited)

Note 1.           Basis of Presentation

                  The condensed  consolidated  financial  statements include the
                  accounts  of  Simon  Transportation  Services  Inc.,  a Nevada
                  holding company,  and its wholly owned subsidiary,  Dick Simon
                  Trucking,  Inc.  (together,  the  "Company").  All significant
                  intercompany balances and transactions have been eliminated in
                  consolidation.

                  The financial statements have been prepared, without audit, in
                  accordance  with  generally  accepted  accounting  principles,
                  pursuant to the rules and  regulations  of the  Securities and
                  Exchange  Commission.  In  the  opinion  of  management,   the
                  accompanying  financial  statements  include  all  adjustments
                  which are necessary for a fair presentation of the results for
                  the interim periods  presented,  such  adjustments  being of a
                  normal  recurring  nature.  Certain  information  and footnote
                  disclosures  have been  condensed or omitted  pursuant to such
                  rules  and  regulations.  The  September  30,  1997  condensed
                  consolidated  statement of financial position was derived from
                  the  audited  balance  sheet of the  Company for the year then
                  ended.  It is  suggested  that  these  condensed  consolidated
                  financial  statements and notes thereto be read in conjunction
                  with the consolidated  financial  statements and notes thereto
                  included   in  the  Annual   Report  on  Form  10-K  of  Simon
                  Transportation  Services Inc. for the year ended September 30,
                  1997.  Results  of  operations  in  interim  periods  are  not
                  necessarily  indicative  of results to be expected  for a full
                  year.


Forward-Looking Statements

This  quarterly  report  and  statements  by  the  Company  in  reports  to  its
stockholders  and public filings,  as well as oral public  statements by Company
representatives  may contain certain forward looking information that is subject
to certain  risks and  uncertainties  that could cause actual  results to differ
materially  from  those   projected.   Without   limitation,   these  risks  and
uncertainties  include economic  recessions or downturns in customers'  business
cycles, excessive increases in capacity within the truckload markets,  decreased
demand for transportation  services offered by the Company,  rapid inflation and
fuel price  increases,  increases in interest rates,  and the  availability  and
compensation  of  qualified  drivers.  Readers  should  review and  consider the
various  disclosures made by the Company in this quarterly  statement and in its
reports to its stockholders and periodic reports on Forms 10-K and 10-Q.

<PAGE>
                 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                         CONDITION AND RESULTS OF OPERATIONS

Overview

         The Company's  fiscal year ends on September 30 of each year. Thus, the
fiscal periods  discussed in this report  represent the Company's  second fiscal
quarters and first six months of its 1998 and 1997 fiscal years, respectively.

         During the quarter ended March 31, 1998, the Company  experienced a net
loss attributable to a revenue  shortfall,  increased  expenses  associated with
driver wages,  and increased  claims  expense due to unusually  severe  accident
experience.  Revenue was  approximately  $6 million below  Company  expectations
because of fewer tractors than anticipated in the Company's fleet, a significant
increase in the number of tractors without drivers,  lower than expected revenue
per mile, and soft freight demand from large customers.  The Company implemented
a driver wage  increase in January but has not  recovered  the increase  through
increased freight rates. Revenue per mile was lower in March than in January and
February,  which is the  opposite  of most years.  Also,  the number of unseated
trucks in the Company's  fleet  increased  significantly  in March. To assist in
recruiting and retaining drivers, the Company approved an additional driver wage
increase of $.02 per mile effective  April 15, 1998. The wage increase will have
a short term,  negative  impact on earnings until freight rates are raised.  The
Company is actively  seeking rate  increases to cover our increases in operating
costs, including the driver wage increase.

Results of Operations

Three months ended March 31, 1998 and 1997

         Operating  revenue increased $10.4 million (29.0%) to $46.1 million for
the three months ended March 31, 1998, from $35.8 million for the  corresponding
period of 1997. The increase in operating revenue was primarily  attributable to
a 36.2% increase in weighted average tractors,  to 1,450 in the 1998 period from
1,065 in the corresponding 1997 period.  This increase was partially offset by a
decrease in average  revenue per tractor per week,  to $2,450 in the 1998 period
from $2,614 in the 1997 period.

         Salaries,  wages, and benefits  increased $5.5 million (39.5%) to $19.4
million  during the quarter  ended March 31, 1998 from $13.9 million in the 1997
period. As a percentage of revenue,  salaries,  wages, and benefits increased to
41.9% of revenue for the three months  ended March 31, 1998,  from 38.8% for the
corresponding period of 1997. The change is primarily attributable to a two cent
per mile increase in the driver base pay per mile effective  January 1, 1998, an
increase in the number of  administrative  personnel  necessary to staff our new
Atlanta  facility,  and the cost of employer provided benefits tied to the gross
wages paid to employees.  The Company has raised the driver base pay per mile an
additional two cents effective April 15, 1998.

         Fuel and fuel taxes  increased  $1.3  million  (18.7%) to $8.3  million
during the quarter ended March 31, 1998 from $7.0 million in the 1997 period. As
a percentage of revenue,  fuel and fuel taxes  decreased to 17.9% of revenue for
the three months ended March 31, 1998, from 19.5% for the  corresponding  period
of 1997, principally as a result of lower fuel prices.

         Operating  supplies and expenses increased $3.3 million (74.0%) to $7.8
million  during the quarter  ended March 31, 1998 from $4.5  million in the 1997
period. As a percentage of revenue, operating supplies and expenses increased to
16.9% of revenue for the three months  ended March 31, 1998,  from 12.5% for the
corresponding  period  of 1997,  primarily  as a result  of  increased  costs of
repairs not covered under vehicle warranties and the cost of preparing equipment
for trade.  The Company  accelerated  the  disposition  of its remaining 48 foot

<PAGE>

trailers to take  advantage of an  opportunity  to acquire 53 foot  trailers and
standardize its fleet with all 53 foot trailers.

         Taxes and licenses  increased  $494,000  (47.0%) to $1.5 million during
the quarter ended March 31, 1998 from $1.1 million for the corresponding  period
of 1997.  As a percentage  of revenue,  taxes and licenses  increased to 3.4% of
revenue  for  the  three   months  ended  March  31,  1998  from  2.9%  for  the
corresponding  period of 1997.  Since taxes and licenses are a relatively  fixed
cost,  the  increase  as  a  percentage  of  revenue  is  consistent   with  the
corresponding  decrease in average  revenue per tractor per week for the quarter
ended March 31, 1998 compared with the corresponding period of 1997.

         Insurance and claims  increased  $1.1 million  (127.7%) to $1.9 million
during the  quarter  ended March 31, 1998 from  $830,000  for the  corresponding
period of 1997.  As a percentage of revenue,  insurance and claims  increased to
4.1% of revenue for the three  months  ended March 31,  1998,  from 2.3% for the
corresponding  period of 1997  because of an increase in the number and severity
of accidents experienced by the Company during the quarter.

         Communications and utilities increased $455,000 (75.3%) to $1.1 million
during the  quarter  ended March 31, 1998 from  $605,000  for the  corresponding
period  of 1997.  As a  percentage  of  revenue,  communications  and  utilities
increased to 2.3% of revenue for the three  months  ended March 31,  1998,  from
1.7% for the  corresponding  period of 1997,  primarily as a result of an access
fee charged to the Company by the owners of pay telephones  based on phone calls
to toll  free  numbers.  In  addition,  the  fixed  costs of  utilities  for the
Company's  terminals  and  costs  associated  with the  usage  of the  Company's
satellite  tracking  system  did not  remain  proportionate  with the  decreased
revenue per tractor.

         Depreciation  and  amortization  decreased  $151,000  (11.7%)  to  $1.1
million  during the  quarter  ended  March 31,  1998 from $1.3  million  for the
corresponding  period of 1997.  As a  percentage  of revenue,  depreciation  and
amortization  (adjusted for the net gain on the sale of property and  equipment)
decreased to 2.5% of revenue for the three  months  ended March 31,  1998,  from
3.6%  for  the  corresponding   period  of  1997.  The  decrease  was  primarily
attributable  to the use of  operating  leases  rather  than  capital  leases to
acquire new equipment  during the last year. The Company  realized a net gain of
$635,053 on the sale of property  and revenue  equipment  during the 1998 period
compared with a $321,050 net gain during the 1997 period.

         Rent increased $3.0 million  (71.1%) to $7.2 million during the quarter
ended March 31, 1998 from $4.2 million for the corresponding  period of 1997. As
a percentage of revenue, rent increased to 15.6% of revenue for the three months
ended March 31,  1998,  from 11.8% for the  corresponding  period of 1997 as the
Company added new equipment and replaced  equipment that had been financed under
capital lease  arrangements  with equipment  financed under operating leases. In
addition,  the fixed monthly rental payments were not as efficiently spread over
lower revenue per tractor. The Company has utilized operating leases in the most
recent quarter because of more favorable terms. If the Company  continues to use
operating lease financing, its operating ratio may be affected in future periods
because the implied  financing costs of such equipment are included as operating
expenses instead of interest expense.

         As a result of the foregoing,  the Company's  operating ratio increased
to  104.6%  for the  three  months  ended  March 31,  1998,  from  93.1% for the
corresponding period of 1997.

         Net interest expense increased  $193,000 (81.4%) to $430,000 during the
quarter ended March 31, 1998 from $237,000 for the corresponding period of 1997.
As a percentage of revenue,  net interest  expense  increased to 0.9% of revenue
for the three  months  ended  March 31,  1998,  from 0.7% for the  corresponding
period in 1997 as a result of higher average debt and capitalized lease balances
in the 1998 period compared with the 1997 period.

         The Company's  effective combined federal and state income tax rate for
the three months ended March 31, 1998 and 1997 was 37.8%.


<PAGE>

         As a result of the factors  described above, the Company  experienced a
net loss of $1,577,101 for the three months ended March 31, 1998,  compared with
net earnings of $1,383,931 for the corresponding period of 1997.

Six months ended March 31, 1998 and 1997

         Operating  revenue increased $23.2 million (33.2%) to $93.2 million for
the six months ended March 31, 1998,  from $69.9  million for the  corresponding
period of 1997. The increase in operating revenue was primarily  attributable to
a 38.7% increase in weighted average tractors,  to 1,426 in the 1998 period from
1,028 in the corresponding 1997 period.  This increase was partially offset by a
decrease in average  revenue per tractor per week,  to $2,519 in the 1998 period
from $2,639 in the 1997 period.

         Salaries,  wages, and benefits increased $10.3 million (38.2%) to $37.4
million  during the six months  ended March 31,  1998 from $27.0  million in the
1997 period. As a percentage of revenue, salaries, wages, and benefits increased
to 40.1% of revenue for the six months ended March 31, 1998,  from 38.7% for the
corresponding  period  of 1997.  The  change  is  primarily  attributable  to an
increase in the driver base pay per mile effective  January 1, 1998, an increase
in the number of  administrative  personnel  necessary  to staff our new Atlanta
facility,  and the cost of employer  provided  benefits  tied to the gross wages
paid to employees.

         Fuel and fuel taxes  increased  $3.7 million  (27.5%) to $17.4  million
during  the six  months  ended  March 31,  1998 from  $13.6  million in the 1997
period.  As a percentage of revenue,  fuel and fuel taxes  decreased to 18.6% of
revenue  for  the  six  months  ended  March  31,  1998,   from  19.5%  for  the
corresponding period of 1997, principally as a result of lower fuel prices.

         Operating supplies and expenses increased $4.7 million (53.7%) to $13.6
million during the six months ended March 31, 1998 from $8.8 million in the 1997
period. As a percentage of revenue, operating supplies and expenses increased to
14.6% of revenue  for the six months  ended March 31,  1998,  from 12.6% for the
corresponding  period  of 1997,  primarily  as a result  of  increased  costs of
repairs not covered under vehicle warranties and the cost of preparing equipment
for trade.

         Taxes and licenses  increased  $868,000  (34.9%) to $3.4 million during
the six months  ended  March 31, 1998 from $2.5  million  for the  corresponding
period  of 1997.  As a  percentage  of  revenue,  taxes  and  licenses  remained
essentially unchanged at 3.6% of revenue for the six months ended March 31, 1998
and 1997.

         Insurance  and claims  increased  $1.5 million  (99.9%) to $2.9 million
during  the  six  months  ended  March  31,  1998  from  $1.5  million  for  the
corresponding  period of 1997. As a percentage of revenue,  insurance and claims
increased to 3.1% of revenue for the six months ended March 31, 1998,  from 2.1%
for the  corresponding  period of 1997  because of an increase in the number and
severity of accidents experienced by the Company during the period.

         Communications and utilities increased $710,000 (62.6%) to $1.8 million
during  the  six  months  ended  March  31,  1998  from  $1.1  million  for  the
corresponding  period of 1997.  As a percentage of revenue,  communications  and
utilities  increased to 2.0% of revenue for the six months ended March 31, 1998,
from  1.6% for the  corresponding  period of 1997,  primarily  as a result of an
access fee charged to the Company by the owners of pay telephones based on phone
calls to toll free  numbers.  In addition,  the fixed costs of utilities for the
Salt Lake and Atlanta terminals and the cost of usage of the Company's satellite
tracking  system did not remain  proportionate  with the decrease in revenue per
tractor.

         Depreciation  and  amortization  decreased  $461,000  (16.5%)  to  $2.3
million  during the six months  ended March 31,  1998 from $2.8  million for the
corresponding  period of 1997.  As a  percentage  of revenue,  depreciation  and
amortization  (adjusted for the net gain on the sale of property and  equipment)

<PAGE>

decreased to 2.5% of revenue for the six months ended March 31, 1998,  from 4.0%
for the corresponding period of 1997. The decrease was primarily attributable to
the use of operating  leases rather than capital leases to acquire new equipment
during the last year. The Company  realized a net gain of $1,322,496 on the sale
of  property  and  revenue  equipment  during the 1998  period  compared  with a
$635,053 net gain during the 1997 period.

         Rent  increased  $5.5 million  (71.3%) to $13.1 million  during the six
months  ended March 31, 1998 from $7.7 million for the  corresponding  period of
1997. As a percentage of revenue, rent increased to 14.1% of revenue for the six
months ended March 31, 1998, from 10.9% for the corresponding  period of 1997 as
the Company added new equipment  and replaced  equipment  that had been financed
under capital lease arrangements with equipment financed under operating leases.
In addition,  the fixed monthly rental  payments were not as efficiently  spread
over lower revenue per tractor. The Company has utilized operating leases in the
most recent six months because of more favorable terms. If the Company continues
to use operating lease financing,  its operating ratio may be affected in future
periods  because the implied  financing  costs of such equipment are included as
operating expenses instead of interest expense.

         As a result of the foregoing,  the Company's  operating ratio increased
to  98.6%  for  the  six  months  ended  March  31,  1998,  from  93.0%  for the
corresponding period of 1997.

         Net interest expense increased  $135,000 (19.8%) to $820,000 during the
six months ended March 31, 1998 from  $685,000 for the  corresponding  period of
1997.  As a percentage of revenue,  net interest  expense  remained  essentially
constant at 0.9% of revenue for the six months  ended March 31,  1998,  compared
with 1.0% for the corresponding period in 1997.

         The Company's  effective combined federal and state income tax rate for
the six months ended March 31, 1998 and 1997 was 37.8%.

         As a result of the factors  described above, net earnings  decreased to
$286,844 for the six months ended March 31, 1998,  compared with net earnings of
$2,619,625 for the corresponding period of 1997.


Liquidity and Capital Resources

         The  growth  of  the  Company's   business  has  required   significant
investment in new revenue  equipment that the Company  historically has financed
with  borrowings  under   installment   notes  payable  to  commercial   lending
institutions  and equipment  manufacturers,  equipment  leases from  third-party
lessors,  borrowings  under its line of  credit,  funds  provided  by its public
offerings in November 1995 and February 1997, and cash flow from operations. The
Company's primary sources of liquidity  currently are cash and cash equivalents,
cash flow from operations, and borrowings and leases with financial institutions
and  equipment  manufacturers.  Management  believes  the  Company's  sources of
liquidity are adequate to meet its current and projected needs.(*)

         The  Company's  primary  source  of cash flow  from  operations  is net
earnings  adjusted for depreciation.  The Company's  principal uses of cash flow
from  operations  are to  service  debt or lease  payments  associated  with new
revenue equipment and to internally finance accounts receivable  associated with
growth in the business.  Net cash provided by operating  activities was $765,000
for the six months ended March 31, 1998.  The primary  sources of funds were net
earnings of $287,000  increased  by $2.3 million in  depreciation,  increases of
$670,000 in accounts  payable and $305,000 in claims payable,  and a decrease in
accounts receivable $1.4 million. The primary uses of funds were $2.1 million to
prepay  licensing  on  revenue   equipment,   $1.9  million  to  reduce  accrued
liabilities,  and  increases in operating  supplies and other assets of $170,000
and $80,000, respectively.

-----------------

(*) May contain "forward-looking" statements.

<PAGE>

         Net cash provided by investing  activities was $2.0 million for the six
months  ended March 31,  1998,  as the  Company  purchased  $6.8  million of new
property  and revenue  equipment  and a new  facility in Atlanta,  Georgia.  The
Company sold revenue  equipment for $8.8 million.  The Company  expects  capital
expenditures  (primarily  for revenue  equipment,  and satellite  communications
units), net of revenue equipment sales and trade-ins,  to be approximately $91.7
million through fiscal 1999.

         Net cash used in  financing  activities  was $5.4  million  in the 1998
period,  consisting primarily of $2.9 million of new borrowings for the purchase
of the Atlanta facility, a reduction of $479,000 in receivables from the sale of
revenue equipment, and payments of $8.8 million of principal under the Company's
long-term  debt and  capitalized  lease  agreements.  In  addition,  the Company
received $32,000 from the exercise of stock options and the issuance of stock to
individuals who participate in the Company's stock option plans.

         The Company's borrowings consist of $16.3 million for revenue equipment
debt  and  capitalized   leases,   and  $10.6  million  for  the  Company's  new
headquarters in Salt Lake City and the Atlanta facility. The Company maintains a
$5 million, unsecured line of credit with a financial institution. Borrowings on
the line of credit  bear  interest at  one-half  percent  (.5%) above the 30-day
London Interbank Offered Rate ("LIBOR") in effect from time to time. The Company
had not drawn against the line of credit at March 31, 1998.


<PAGE>



                                 
                                  PART II

                             OTHER INFORMATION


Item 1.           Legal Proceedings.

                  No reportable  events or material  changes occurred during the
                  quarter for which this report is filed.

Item 2.           Changes in Securities.

                  None.

Item 3.           Defaults Upon Senior Securities.

                  None.

Item 4.           Submission of Matters to a Vote of Security Holders.

                  None.

Item 5.           Other Information.

                  None.

Item 6.           Exhibits and Reports on Form 8-K.

                  (a)      Exhibits

Number            Description


        3.1    *  Articles of Incorporation
        3.2    *  Bylaws
        4.1    *  Articles of Incorporation
        4.2    *  Bylaws
       10.2    *  Outside Director Stock Option Plan.
       10.3    *  Incentive Stock Plan.
       10.4    *  401(k) Plan.
       10.11   #  Loan Agreement (Line of Credit) dated April 29, 1996 (replaced
                  loan  agreement dated  December 1, 1995)  between U.S. Bank of
                  Utah and Simon Transportation Services Inc.
       11         Schedule of Computation of Net Income Per Share
       27         Financial Data Schedule


          *       Incorporated  by  reference from  the  Company's  Registration
                  Statement on  Form S-1, Registration  No. 33-96876,  effective
                  November 17, 1995.

          #       Incorporated by reference from the  Company's Quarterly Report
                  on Form 10-Q  for the  period ended  June 30, 1996, Commission
                  File No. 0-27208, dated August 9, 1996.



                  (b)      Reports on Form 8-K.

                  None.



<PAGE>


                                   SIGNATURE

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


                                  SIMON TRANSPORTATION SERVICES INC.,
                                  a Nevada corporation

Date:    May 5, 1998              By:      /s/ Alban B. Lang
         ------------------------          -----------------
                                           (Signature)
                                           Alban B. Lang
                                           Treasurer and Chief Financial Officer