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, 1999

(  )     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, 1999).

             Class A Common Stock, $.01 par value: 5,372,683 shares
              Class B Common Stock, $.01 par value: 913,751 shares

                                                     Exhibit Index is on Page 13


<PAGE>



                                    SIMON TRANSPORTATION SERVICES INC.
                                            TABLE OF CONTENTS

                                                  PART I

                                          FINANCIAL INFORMATION

<TABLE>
<S>                                                                                                  <C>

                                                                                                       PAGE
                                                                                                      NUMBER

Item 1.      Financial Statements:

             Condensed consolidated statements of financial position as of
                      March 31, 1999 and September 30, 1998                                               3

             Condensed consolidated statements of operations for the three
                      and six months ended March 31, 1999 and 1998                                        4

             Condensed consolidated statements of cash flows for the six months
                      ended March 31, 1999 and 1998                                                       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                                                                           13

Item 2.      Changes in Securities                                                                       13

Item 3.      Defaults Upon Senior Securities                                                             13

Item 4.      Submission of Matters to a Vote of Security Holders                                         13

Item 5.      Other Information                                                                           13

Item 6.      Exhibits and Reports on Form 8-K                                                            14

</TABLE>

<PAGE>




                                                             
                            SIMON TRANSPORTATION SERVICES INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

                                          ASSETS

<TABLE>
<S>                                                                             <C>                      <C>    

                                                                                March 31, 1999           September 30, 1998
                                                                                --------------           ------------------
                                                                                  (Unaudited)
Current Assets:
         Cash                                                                   $    8,017,727             $      7,826,365
         Receivables, net of allowance for doubtful accounts of
         $235,000 and $189,000, respectively                                        22,913,083                   20,250,931
         Operating supplies                                                            920,968                    1,069,095
         Prepaid expenses and other                                                  7,204,350                    5,537,548
                                                                                ---------------            ----------------
                  Total current assets                                              39,056,128                   34,683,939
                                                                                ---------------            -----------------

Property and Equipment, at cost:
         Land                                                                        8,387,972                    8,589,422
         Revenue equipment                                                          44,066,945                   47,702,977
         Buildings and improvements                                                 18,305,474                   18,350,370
         Office furniture and equipment                                              8,756,118                    8,573,389
                                                                                ---------------            -----------------
                                                                                    79,516,509                   83,216,158
         Less accumulated depreciation and amortization                            (19,866,480)                 (18,598,221)
                                                                                ---------------            -----------------
                                                                                    59,650,029                   64,617,937
                                                                                ---------------            -----------------
Other Assets                                                                           328,770                      223,823
                                                                                ===============            =================
                                                                                $   99,034,927             $     99,525,699
                                                                                ===============            =================

                      LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
         Current portion of long-term debt                                      $   14,424,523             $      7,627,142
         Current portion of capitalized lease obligations                              434,800                    2,030,988
         Accounts payable                                                            5,398,853                    5,015,049
         Accrued liabilities                                                         3,065,756                    3,188,404
         Accrued claims payable                                                      1,781,502                    1,260,827
                                                                                ---------------            -----------------
                  Total current liabilities                                         25,105,434                   19,122,410
                                                                                ---------------            -----------------

Long-Term Debt, net of current portion                                               5,252,700                    9,102,649
                                                                                ---------------            -----------------
Capitalized Lease Obligations, net of current portion                                2,223,882                    2,444,856
                                                                                ---------------            -----------------
Deferred Income Taxes                                                                9,156,843                    9,156,843
                                                                                ---------------            -----------------

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, 5,372,683 shares issued                                   53,727                       53,727
         Class B common stock, $.01 par value, 5,000,000 shares
                  authorized, 913,751 shares issued                                      9,138                        9,138
         Treasury stock, 176,600 and 81,100
                  shares at cost, respectively                                      (1,053,147)                    (531,547)
         Additional paid-in capital                                                 48,277,256                   48,277,256
         Retained earnings                                                          10,009,094                   11,890,367
                                                                                ---------------            -----------------
                  Total stockholders' equity                                        57,296,068                   59,698,941
                                                                                ---------------            -----------------
                                                                                $   99,034,927             $     99,525,699
                                                                               ===============            =================
</TABLE>

     See accompanying notes to condensed consolidated financial statements

<PAGE>


                       SIMON TRANSPORTATION SERVICES INC.
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                (Unaudited)
<TABLE>
<CAPTION>

                                                                For the Three Months Ended              For the Six Months Ended
                                                           -------------------------------------------------------------------------
<S>                                                          <C>                <C>                <C>               <C>
                                                             March 31, 1999     March 31, 1998     March 31, 1999    March 31, 1998
                                                             --------------     --------------     --------------    --------------

Operating Revenue                                            $    49,271,237    $    46,149,338    $ 102,263,636      $   93,155,831
                                                          --------------------------------------------------------------------------

Operating Expenses:
         Salaries, wages, and benefits                            21,784,521         19,351,827       44,735,465          37,363,142
         Fuel and fuel taxes                                       8,367,331          8,262,994       17,302,681          17,360,048
         Operating supplies and expenses                           7,409,815          7,798,494       14,187,729          13,580,171
         Taxes and licenses                                        1,901,218          1,546,438        3,915,962           3,356,344
         Insurance and claims                                      1,760,834          1,898,971        3,117,309           2,919,698
         Communications and utilities                              1,106,483          1,060,020        2,150,189           1,845,162
         Depreciation and amortization                               940,142          1,135,528        2,079,050           2,338,682
         Rent                                                      8,716,670          7,200,228       17,121,770          13,112,175
                                                          --------------------------------------------------------------------------
                  Total operating expenses                        51,987,014         48,254,500      104,610,155          91,875,422
                                                          --------------------------------------------------------------------------
                  Operating earnings (loss)                       (2,715,777)        (2,105,162)      (2,346,519)          1,280,409
Net interest expense                                                 381,347            430,370          678,034             819,245
                                                          --------------------------------------------------------------------------
Earnings (loss) before provision for income taxes                 (3,097,124)        (2,535,532)      (3,024,553)            461,164
Provision (benefit) for income taxes                              (1,170,713)          (958,431)      (1,143,281)            174,320
                                                          ==========================================================================
Net earnings (loss)                                          $    (1,926,411)   $    (1,577,101)   $  (1,881,272)     $      286,844
                                                          ==========================================================================

Net earnings (loss) per common share:
         Basic                                               $        (0.32)    $        (0.25)    $       (0.31)     $         0.05
                                                          ==========================================================================
         Diluted                                             $        (0.32)    $        (0.25)    $       (0.31)     $         0.04
                                                          ==========================================================================

Weighted average common shares outstanding:
         Basic                                                     6,109,834          6,286,202         6,123,834          6,285,301
                                                          ==========================================================================
         Diluted                                                   6,109,834          6,286,202         6,123,834          6,437,440
                                                          ==========================================================================
</TABLE>

     See accompanying notes to condensed consolidated financial statements


<PAGE>


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

<TABLE>
<CAPTION>
                                                                                           For the Six Months Ended
                                                                                ---------------------------------------------
<S>                                                                                  <C>                     <C>
                                                                                      March 31, 1999          March 31, 1998
                                                                                     ----------------        ----------------
Cash Flows From Operating Activities:
     Net earnings                                                                    $     (1,881,272)       $       286,844
     Adjustments to  reconcile  net  earnings to net cash (used in)  provided by
         operating activities:
              Depreciation and amortization                                                 2,079,051              2,338,682
              Changes in operating assets and liabilities:
                  (Increase) decrease in receivables, net                                  (2,662,152)             1,363,947
                  Decrease (increase) in operating supplies                                   148,127               (171,204)
                  Increase in prepaid expenses and other                                   (1,666,802)            (2,069,695)
                  Increase in other assets                                                   (104,947)               (80,320)
                  Increase in accounts payable                                                383,804                672,030
                  Decrease in accrued liabilities                                            (122,648)            (1,880,215)
                  Increase in accrued claims payable                                          520,675                304,657
                                                                                ---------------------------------------------
                      Net cash (used in) provided by operating activities                  (3,306,164)               764,726
                                                                                ---------------------------------------------

Cash Flows From Investing Activities:
     Purchase of property and equipment                                                    (2,967,289)            (6,797,880)
     Proceeds from the sale of property and equipment                                       5,856,145              8,786,800
                                                                                ---------------------------------------------
                      Net cash provided by investing activities                             2,888,856              1,988,920
                                                                                ---------------------------------------------

Cash Flows From Financing Activities:
     Proceeds from issuance of long-term debt                                                      --              2,900,000
     Principal payments on long-term debt                                                  (3,752,568)            (3,483,119)
     Borrowings under line-of-credit agreement                                              6,700,000                     --
     Principal payments under capitalized lease obligations                                (1,817,162)            (5,303,204)
     Decrease in receivable from sale of equipment                                                 --                478,500
     Purchase of treasury stock                                                              (521,600)                    --
     Net proceeds from issuance of Class A common stock                                            --                 32,220
                                                                                ---------------------------------------------
                      Net cash provided by (used in) financing activities                     608,670             (5,375,603)
                                                                                ---------------------------------------------

Net Increase (Decrease) In Cash                                                               191,362             (2,621,957)
Cash at Beginning of Period                                                                 7,826,365             12,766,001
                                                                                ---------------------------------------------

Cash at End of Period                                                                $      8,017,727        $    10,144,044
                                                                                =============================================

Supplemental Disclosure of Cash Flow Information:
         Cash paid during the period for interest                                    $        728,481        $     1,006,188
         Cash paid during the period for income taxes                                          29,467                667,137

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



</TABLE>

     See accompanying notes to condensed consolidated financial statements

<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,  1998  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,
                  1998.  Results  of  operations  in  interim  periods  are  not
                  necessarily  indicative  of results to be expected  for a full
                  year.

Note 2:           Net Loss Per Common Share

                  Basic  net  loss  per  common  share  ("Basic  EPS")  excludes
                  dilution  and is computed by dividing net loss by the weighted
                  average number of common shares outstanding during the period.
                  Diluted net loss per common share ("Diluted EPS") reflects the
                  potential  dilution that could occur if stock options or other
                  contracts to issue  common  stock were  exercised or converted
                  into common  stock.  The  computation  of Diluted EPS does not
                  assume exercise or conversion of securities that would have an
                  antidilutive effect on net loss per common share.

                  Options to purchase  1,048,900  and  726,824  shares of common
                  stock at weighted average exercise prices of $13.97 and $17.87
                  per  share  as  of March 31, 1999 and 1998, respectively, were
                  not included in the computation  of Diluted EPS. The inclusion
                  of  the   options  would  have   been  antidilutive,   thereby
                  decreasing net loss per common share.

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 1999 and 1998 fiscal years, respectively.

Results of Operations

Three months ended March 31, 1999 and 1998

         Operating  revenue  increased  $3.1 million (6.8%) to $49.2 million for
the three months ended March 31, 1999, from $46.1 million for the  corresponding
period of 1998. The increase in operating revenue was primarily  attributable to
a 10.0% increase in weighted average tractors,  to 1,595 in the 1999 period from
1,450 in the corresponding 1998 period.  This increase was partially offset by a
decrease in average  revenue per tractor per week,  to $2,390 in the 1999 period
from $2,450 in the 1998 period.

         Salaries,  wages, and benefits  increased $2.4 million (12.6%) to $21.8
million  during the quarter  ended March 31, 1999 from $19.4 million in the 1998
period. As a percentage of revenue,  salaries,  wages, and benefits increased to
44.2% of revenue for the three months  ended March 31, 1999,  from 41.9% for the
corresponding  period of 1998. The change is primarily  attributable to a driver
wage increase and the cost of employer provided benefits tied to the gross wages
paid to employees. In order to remain competitive in its compensation package to
drivers,  the Company raised driver base pay two cents per mile effective  April
15, 1998.

         Fuel and fuel taxes increased $.1 million (1.3%) to $8.4 million during
the  quarter  ended March 31, 1999 from $8.3  million in the 1998  period.  As a
percentage of revenue, fuel and fuel taxes decreased to 17.0% of revenue for the
three months ended March 31, 1999, from 17.95% for the  corresponding  period of
1998, principally as a result of lower fuel prices.

         Operating  supplies and expenses  decreased $.4 million  (5.0%) to $7.4
million  during the quarter  ended March 31, 1999 from $7.8  million in the 1998
period. As a percentage of revenue, operating supplies and expenses decreased to
15.0% of revenue for the three months  ended March 31, 1999,  from 16.9% for the
corresponding  period  of 1998,  primarily  as a result  of  decreased  costs of
repairs not covered under vehicle warranties and the decreased cost of preparing
equipment  for trade.  During  the 1998  period,  the  Company  accelerated  the
disposition  of  its  remaining   48-foot  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 $.4 million (22.9%) to $1.9 million during
the quarter ended March 31, 1999 from $1.5 million for the corresponding  period
of 1998.  As a percentage  of revenue,  taxes and licenses  increased to 3.9% of
revenue  for  the  three   months  ended  March  31,  1999  from  3.4%  for  the
corresponding  period of 1998.  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,  1999  compared  with the  corresponding  period  of 1998.  In
addition,  the  Company  accrued  additional  property  taxes in the 1999 period
associated with the Salt Lake and Atlanta terminals.

         Insurance  and claims  decreased  $.1  million  (7.3%) to $1.8  million
during the quarter ended March 31, 1999 from $1.9 million for the  corresponding
period of 1998.  As a percentage of revenue,  insurance and claims  decreased to
3.6% of revenue for the three  months  ended March 31,  1999,  from 4.1% for the

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

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

<PAGE>

corresponding period of 1998 because of a decrease in the number and severity of
accidents experienced by the Company during the quarter.

         Communications  and  utilities  remained  essentially  constant at $1.1
million  during each period.  As a  percentage  of revenue,  communications  and
utilities  were 2.2% of  revenue  for the three  months  ended  March 31,  1999,
compared with 2.3% of revenue for the corresponding period of 1998.

         Depreciation  and  amortization  decreased  $.2 million  (17.2%) to $.9
million  during the  quarter  ended  March 31,  1999 from $1.1  million  for the
corresponding  period of 1998.  As a  percentage  of revenue,  depreciation  and
amortization  (adjusted for the net gain on the sale of property and  equipment)
decreased to 1.9% of revenue for the three  months  ended March 31,  1999,  from
2.5%  for  the  corresponding   period  of  1998.  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
$626,083 on the sale of property  and revenue  equipment  during the 1999 period
compared with a $635,023 net gain during the 1998 period.

         Rent increased $1.5 million  (21.1%) to $8.7 million during the quarter
ended March 31, 1999 from $7.2 million for the corresponding  period of 1998. As
a percentage of revenue, rent increased to 17.7% of revenue for the three months
ended March 31,  1999,  from 15.6% for the  corresponding  period of 1998 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,  as a result of the decrease in average  revenue per tractor per week,
the fixed  monthly  rental  payments  resulted in higher rent as a percentage of
revenue.  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 will continue to 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 105.5%  for the three  months  ended  March 31,  1999,  from  104.6%  for the
corresponding period of 1998.

         Net interest expense  decreased  $49,000 (11.4%) to $381,000 during the
quarter ended March 31, 1999 from $430,000 for the corresponding period of 1998.
As a percentage of revenue,  net interest  expense  decreased to 0.8% of revenue
for the three  months  ended  March 31,  1999,  from 0.9% for the  corresponding
period in 1998 as a result of lower average debt and capitalized  lease balances
in the 1999 period compared with the 1998 period.

         The Company's  effective combined federal and state income tax rate for
the three months ended March 31, 1999 and 1998 was 37.8%.

         As a result of the factors  described above, the Company  experienced a
net loss of $1,926,411 for the three months ended March 31, 1999,  compared with
a net loss of $1,577,101 for the corresponding period of 1998.

Six months ended March 31, 1999 and 1998

         Operating  revenue  increased $9.1 million (9.8%) to $102.3 million for
the six months ended March 31, 1999,  from $93.2  million for the  corresponding
period of 1998. The increase in operating revenue was primarily  attributable to
a 12.0% increase in weighted average tractors,  to 1,597 in the 1999 period from
1,426 in the corresponding 1998 period.  This increase was partially offset by a
decrease in average  revenue per tractor per week,  to $2,482 in the 1999 period
from $2,519 in the 1998 period.

         Salaries,  wages, and benefits  increased $7.3 million (19.7%) to $44.7
million  during the six months  ended March 31,  1999 from $37.4  million in the
1998 period. As a percentage of revenue, salaries, wages, and benefits increased
to 43.7% of revenue for the six months ended March 31, 1999,  from 40.1% for the

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

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

<PAGE>

corresponding  period of 1998.  The  change  is  primarily  attributable  to two
separate increases in the driver base pay per mile effective January 1, 1998 and
April 15, 1998,  and the cost of employer  provided  benefits  tied to the gross
wages paid to employees.

         Fuel and fuel  taxes  decreased  $.1  million  (0.3%) to $17.3  million
during  the six  months  ended  March 31,  1999 from  $17.4  million in the 1998
period.  As a percentage of revenue,  fuel and fuel taxes  decreased to 16.9% of
revenue  for  the  six  months  ended  March  31,  1999,   from  18.6%  for  the
corresponding period of 1998, principally as a result of lower fuel prices.

         Operating  supplies and expenses  increased $.6 million (4.5%) to $14.2
million  during the six months  ended March 31,  1999 from $13.6  million in the
1998  period.  As a  percentage  of revenue,  operating  supplies  and  expenses
decreased  to 13.9% of revenue  for the six months  ended March 31,  1999,  from
14.6% for the corresponding  period of 1998,  primarily as a result of decreased
costs of repairs not covered under vehicle  warranties and the decreased cost of
preparing equipment for trade.

         Taxes and licenses increased $.5 million (16.7%) to $3.9 million during
the six months  ended  March 31, 1999 from $3.4  million  for the  corresponding
period of 1998. As a percentage of revenue, taxes and licenses increased to 3.8%
of revenue for the six months ended March 31, 1999, from 3.6% of revenue for the
corresponding period of 1998. This increase is consistent with the corresponding
decrease in average  revenue per tractor per week for the six months ended March
31, 1999 compared with the corresponding period of 1998.

         Insurance  and claims  increased  $.2  million  (6.8%) to $3.1  million
during  the  six  months  ended  March  31,  1999  from  $2.9  million  for  the
corresponding  period of 1998. As a percentage of revenue,  insurance and claims
decreased to 3.0% of revenue for the six months ended March 31, 1999,  from 3.1%
for the  corresponding  period of 1998  because of a decrease  in the number and
severity of accidents experienced by the Company during the period.

         Communications  and  utilities  increased  $.3 million  (16.5%) to $2.1
million  during the six months  ended March 31,  1999 from $1.8  million for the
corresponding  period of 1998.  As a percentage of revenue,  communications  and
utilities  remained  essentially  constant at 2.1% of revenue for the six months
ended March 31, 1999, compared with 2.0% of revenue for the corresponding period
of 1998.

         Depreciation  and  amortization  decreased $.3 million  (11.1%) to $2.0
million  during the six months  ended March 31,  1999 from $2.3  million for the
corresponding  period of 1998.  As a  percentage  of revenue,  depreciation  and
amortization  (adjusted for the net gain on the sale of property and  equipment)
decreased to 2.0% of revenue for the six months ended March 31, 1999,  from 2.5%
for the corresponding period of 1998. 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 $1,247,649 on the sale
of  property  and  revenue  equipment  during the 1999  period  compared  with a
$1,322,496 net gain during the 1998 period.

         Rent  increased  $4.0 million  (30.6%) to $17.1 million  during the six
months ended March 31, 1999 from $13.1 million for the  corresponding  period of
1998. As a percentage of revenue, rent increased to 16.7% of revenue for the six
months ended March 31, 1999, from 14.1% for the corresponding  period of 1998 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,  as a result of the  decrease  in average  revenue per tractor per
week, the fixed monthly rental payments  resulted in higher rent as a percentage
of revenue.  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 will continue to be affected in
future  periods  because  the  implied  financing  costs of such  equipment  are
included as operating expenses instead of interest expense.(*)

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

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

<PAGE>

         As a result of the foregoing,  the Company's  operating ratio increased
to  102.3%  for  the six  months  ended  March  31,  1999,  from  98.6%  for the
corresponding period of 1998.

         Net  interest  expense  decreased  $.1  million  (17.2%) to $.7 million
during  the  six  months   ended  March  31,  1999  from  $.8  million  for  the
corresponding  period of 1998. As a percentage of revenue,  net interest expense
decreased to 0.7% of revenue for the six months ended March 31, 1999,  from 0.9%
for the  corresponding  period  in 1998 as a result  of lower  average  debt and
capitalized lease balances in the 1999 period compared with the 1998 period.

         The Company's  effective combined federal and state income tax rate for
the six months ended March 31, 1999 and 1998 was 37.8%.

         As a result of the factors  described above, the Company  experienced a
net loss of  $1,881,272  for the six months ended March 31, 1999,  compared with
net earnings of $286,844 for the corresponding period of 1998.


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, and cash flow from operations. The
Company's primary sources of liquidity  currently are cash and cash equivalents,
and   borrowings   and  leases  with   financial   institutions   and  equipment
manufacturers.

         The Company's primary source of cash flow from operations  generally is
net earnings  adjusted for depreciation and deferred income taxes. 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 used in
operating  activities  was $3.3 million for the six months ended March 31, 1999.
The primary  sources of funds were increases of $.4 million in accounts  payable
and $.5 million in claims payable,  and a decrease in operating  supplies of $.1
million.  The primary  uses of funds were a net loss of $1.9  million  offset by
depreciation  of $2.0  million,  $1.7  million  to prepay  licensing  on revenue
equipment,  an increase of $2.7 million in accounts receivable,  and an increase
in other assets of $.1 million.

         Net cash provided by investing  activities was $2.9 million for the six
months  ended March 31,  1999,  as the  Company  purchased  $3.0  million of new
revenue equipment and furniture and fixtures. The Company sold revenue equipment
for $5.9  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 $44.0 million through calendar 1999.

         Net cash provided by financing  activities  was $.6 million in the 1999
period,  consisting  primarily of a $6.7 million borrowing on the Company's line
of credit,  payments of $5.6 million of principal under the Company's  long-term
debt and  capitalized  lease  agreements,  and $.5 million to repurchase  95,500
shares  of the  Company's  Class A Common  Stock.  In July  1998,  the  Board of
Directors  authorized  the  repurchase of up to 500,000 shares of Class A Common
Stock.  The  repurchases  may be made  in the  open  market  or  otherwise  from
time-to-time  through  September  1999.  To date,  the Company  has  repurchased
176,600 shares of Common Stock at an average market price of $5.96 per share for
a total cash outlay of $1,053,000.

         The Company's  borrowings consist of $9.4 million for revenue equipment
debt and capitalized leases, and $6.2 million for the Company's  headquarters in
Salt Lake City and the Atlanta  facility.  The Company  maintains a $10 million,
unsecured line of credit with a financial institution. Borrowings on the line of

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

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

<PAGE>

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  outstanding
borrowings of $6.7 million against the line of credit at March 31, 1999.

         Management believes that available borrowings under the line of credit,
and future borrowings under installment notes payable or lease  arrangements for
revenue equipment will allow the Company to continue to meet its working capital
requirements,  anticipated capital expenditures,  and obligations under debt and
capitalized and operating leases at least through fiscal year 1999.(*)

Year 2000 Compliance

         The  Company  has  completed  a review of each of its core  systems  to
determine year 2000 (Y2K)  compliance.  The Company's  billing,  dispatch,  EDI,
fueling,  payroll,  telephone,  vehicle  maintenance,  and  yard  and  equipment
inventory  systems and all other  critical  hardware and  software  systems were
designed to be Y2K compliant from inception.  The Company is currently reviewing
the Y2K compliance  status of its facilities and equipment.  The Company expects
to  complete  this review and have taken  actions  toward  making each  non-core
system Y2K compliant by June 1999.(*)

         The Company relies on Qualcomm to provide the satellite tracking system
necessary to track the location of its  equipment,  and to provide  dispatch and
routing  information  to its  drivers.  The Company has been  informed  that the
software  utilized  by  Qualcomm  and the  Company is fully Y2K  compliant.  The
Company  utilizes  Comdata to transmit payroll funds to its drivers and to allow
drivers to  purchase  fuel  outside of the  Company's  terminal  locations.  The
Company has been informed that Comdata expects to be fully Y2K compliant by June
1999.  The Company also interacts  with many of its vendors  through  electronic
data  interchange  (EDI).  Although  the  Company  is Y2K  compliant  in its EDI
applications,  we cannot and do not guarantee the Y2K compliance of our business
partners' systems.(*)

         The Company has incurred  internal staff costs  necessary to review and
further Y2K compliance of its core operating  systems.  Because the systems were
designed to be Y2K compliant since inception,  the costs have not had a material
effect on the Company's financial position or results of operations. The Company
will incur additional  internal staff time to complete its compliance  review of
non-core  systems  embedded in facilities and equipment.  These non-core systems
include  microcontrollers  contained  in tractor  engines and other  components,
refrigeration units, and terminal  facilities.  The costs of such review are not
expected to be  incremental  since they represent the  redeployment  of existing
information  technology  resources.  Because of the relatively  young age of its
facilities and equipment,  the Company does not expect to find non-core  systems
that need to be replaced to further Y2K compliance.(*)

         The Company anticipates that the risks related to its core and non-core
systems will be mitigated by ongoing  assessment  and correction of the systems.
The primary risk to operations is service disruption from third-party  providers
that supply satellite communication,  telephone, fueling and financial services.
Any disruption of these critical  services would hinder the Company's ability to
receive,  process and track its freight or  communicate  with its  customers and
drivers.(*)

         A failure of the satellite communication system could have a materially
adverse effect on the Company's business and results of operations.  The Company
is relying on the  contingency  plan  established  by  Qualcomm  to prevent  the
interruption of business.  As an additional backup, the Company plans to use its
existing  telephone systems to dispatch its equipment and provide support to its
drivers in the event of a complete satellite system failure. In the event of EDI
failures on the part of our  customers,  the Company  plans to use its telephone
and  facsimile  system to receive load tenders from its  customers.  The Company
would switch to paper invoices for its customers  unable to use EDI.  Management
believes  that the  Company's  current  state of  readiness,  the  nature of the
Company's business,  and the availability of the contingency plans minimizes Y2K
risks. Management does not foresee significant liability to third parties if the
Company's systems are not Y2K compliant.(*)


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

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

<PAGE>

Quantitative and Qualitative Disclosures About Market Risk

The principal  market risks (i.e., the risk of loss arising from adverse changes
in market  rates and prices) to which we are exposed are  interest  rates on our
debt  financing.  Our variable rate debt consists of a revolving line of credit,
an unsecured  term loan and an equipment  finance  term loan  carrying  interest
rates tied to LIBOR or the Eurodollar rate. These variable interest rates expose
us to the risk  that  interest  rates  may rise.  At March  31,  1999,  assuming
borrowing equal to the $6.7 million drawn on the line of credit and $7.1 million
on other outstanding variable rate loans, a one percentage point increase in the
LIBOR and  Eurodollar  rate  would  increase  our  annual  interest  expense  by
approximately  $138,000.  The balance of our equipment  financing  carries fixed
interest rates and includes term notes payable and  capitalized  leases totaling
approximately  $8.5 million.  These fixed  interest  rates expose us to the risk
that interest rates may fall. A one  percentage  point decline in interest rates
would have the effect of  increasing  the  premium we pay over  market  interest
rates by one percentage point or approximately $85,000 annually.

We are not engaged in any fuel  hedging  transactions.  Thus,  we are exposed to
fluctuations  in fuel prices but are not  exposed to any market  risk  involving
hedging costs.

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

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



<PAGE>


                                    PART II

                               OTHER INFORMATION


Item 1.           Legal Proceedings.

                  The Company and certain of its  officers  and  directors  have
         been named as  defendants  in a  securities  class  action filed in the
         United States District Court for the District of Utah,  Caprin v. Simon
         Transportation  Services, Inc., et al., No. 2:98CV 863K (filed December
         3,  1998).  Plaintiffs  in this  action  allege  that  defendants  made
         material  misrepresentations  and omissions  during the period February
         13, 1997 through April 2, 1998 in violation of Sections 10(b) and 20(a)
         of the  Securities  Exchange  Act of 1934  and Rule  10b-5  promulgated
         thereunder. The Company intends to vigorously defend this action.

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.

<PAGE>


                  (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 14, 1999                        By: /s/ Alban B. Lang
         --------------------                    -----------------
                                                 (Signature)

                                             Alban B. Lang
                                             Treasurer,  Chief Operating Officer
                                             and Chief Financial Officer