----

**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-Q**

|  x | **QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT                OF 1934.** |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------|

| o  | **TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT                OF 1934.** |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------|

**KNIGHT      TRANSPORTATION, INC.**

| **Arizona**                                                                                 | **86-0649974**                                                    |
|---------------------------------------------------------------------------------------------|-------------------------------------------------------------------|
| (State                or other jurisdiction ofincorporation                or organization) | (I.R.S.                EmployerIdentification                No.) |

**5601      West Buckeye Road**

**Phoenix,      Arizona**

**85043**

**602-269-2000**

----

**KNIGHT      TRANSPORTATION, INC.**

**INDEX**

| **PART                I -****Financial                Information** | **Page                Number**                                                                                                                           |
|---------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                |                                                                                                                                                     |
| **Item                1.**                                          | **Financial                Statements**                                                                                                                  |   |
|                                                                |                                                                                                                                                     |   |
|                                                                | Condensed                Consolidated Balance Sheets as of June 30, 2005 and December 31,                2004                (Unaudited)                 | 2 |
|                                                                |                                                                                                                                                     |   |
|                                                                | Condensed                Consolidated Statements of Income for the three months and six months                ended June 30, 2005 and 2004 (Unaudited)   | 4 |
|                                                                |                                                                                                                                                     |   |
|                                                                | Condensed                Consolidated Statements of Cash Flows for the six months ended June                30,                2005 and 2004 (Unaudited) | 5 |
|                                                                |                                                                                                                                                     |   |
|                                                                | Notes                to Condensed Consolidated Financial Statements (Unaudited)                                                                          | 7 |
|                                                                |                                                                                                                                                     |   |
| **Item                2.**                                          | **Management's                Discussion and Analysis of Financial Condition and Results of                Operations**                                  | 11 |
|                                                                |                                                                                                                                                     |   |
| **Item                3.**                                          | **Quantitative                and Qualitative Disclosures About Market Risk**                                                                            | 22 |
|                                                                |                                                                                                                                                     |   |
| **Item                4.**                                          | **Controls                and Procedures**                                                                                                               | 23 |
|                                                                |                                                                                                                                                     |   |
| **Part                II -****Other                Information**    |
|                                                                |                                                                                                                                                     |   |
| **Item                1.**                                          | **Legal                Proceedings**                                                                                                                     |                      24 |
|                                                                |                                                                                                                                                     |   |
| **Item                2.**                                          | **Unregistered                Sales of Equity Securities and Use of Proceeds**                                                                           | 24 |
|                                                                |                                                                                                                                                     |   |
| **Item                3.**                                     | **Defaults                Upon Senior Securities**                                                                                                       | 24 |
|                                                                |                                                                                                                                                     |   |
| **Item                4.**                                     | **Submission                of Matters to a Vote of Security Holders**                                                                                   | 24 |
|                                                                |                                                                                                                                                     |   |
| **Item                5.**                                     | **Other                Information**                                                                                                                     | 24 |
|                                                                |                                                                                                                                                     |   |
| **Item                6.**                                     | **Exhibits**                                                                                                                                             | 24 |
|                                                                |                                                                                                                                                     |   |
| **Signatures**                                                      | 26                                                                                                                                                       |

----

Table          of Contents

**PART      I - FINANCIAL INFORMATION**

**Item      1.**
**Financial      Statements**

| **KNIGHT                TRANSPORTATION, INC. AND                SUBSIDIARIES****Condensed                Consolidated Balance Sheets****(Unaudited)****As                of June 30, 2005 and December 31, 2004****(In                thousands)** |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                           |   |  June                30, 2005 |     |  December                31, 2004 |   |
|----------------------------------------------------------------|--------|------------------------------------|----------|----------------------------------------|--------|
|                                                           |   |                               |     |                                   |   |
| **ASSETS**                                                     |   |                               |     |                                   |   |
|                                                           |   |                               |     |                                   |   |
| CURRENT                ASSETS:                                 |   |                               |     |                                   |   |
|                                                           |   |                               |     |                                   |   |
| Cash                and cash equivalents                  |   | $                                  | 40,923   |                                   | $      | 25,357 |   |
| Accounts                receivable, net                        |   |                               | 64,638   |                                   |   | 58,733 |   |
| Notes                receivable, net                           |   |                               | 194      |                                   |   | 171 |   |
| Inventories                and supplies                        |   |                               | 3,077    |                                   |   | 2,332 |   |
| Prepaid                expenses                                |   |                               | 6,684    |                                   |   | 5,215 |   |
| Income                tax receivable                           |   |                               | -        |                                   |   | 3,216 |   |
| Deferred                tax asset                              |   |                               | 8,950    |                                   |   | 7,493 |   |
|                                                           |   |                               |     |                                   |   |   |   |
| Total                current assets                            |   |                               | 124,466  |                                   |   | 102,517 |   |
|                                                           |   |                               |     |                                   |   |   |   |
| PROPERTY                AND EQUIPMENT:                         |   |                               |     |                                   |   |   |   |
| Land                and improvements                           |   |                               | 16,542   |                                   |   | 16,516 |   |
| Buildings                and improvements                      |   |                               | 28,158   |                                   |   | 26,944 |   |
| Furniture                and fixtures                          |   |                               | 7,451    |                                   |   | 6,610 |   |
| Shop                and service equipment                      |   |                               | 2,813    |                                   |   | 2,739 |   |
| Revenue                equipment                               |   |                               | 368,654  |                                   |   | 338,413 |   |
| Leasehold                improvements                          |   |                               | 845      |                                   |   | 833 |   |
|                                                           |   |                               | 424,462  |                                   |   | 392,055 |   |
| Less:                Accumulated depreciation and amortization |   |                               | (121,588 | )                                      |   | (104,125 | ) |
|                                                           |   |                               |     |                                   |   |   |   |
| PROPERTY                AND EQUIPMENT, net                     |   |                               | 302,875  |                                   |   | 287,930 |   |
|                                                           |   |                               |     |                                   |   |   |   |
| NOTES                RECEIVABLE - long-term                    |   |                               | 234      |                                   |   | 77 |   |
| GOODWILL                                                       |   |                               | 7,504    |                                   |   | 7,504 |   |
| OTHER                ASSETS                                    |   |                               | 4,241    |                                   |   | 4,839 |   |
|                                                           |   |                               |     |                                   |   |   |   |
|                                                           |   | $                                  | 439,320  |                                   | $      | 402,867 |   |
|                                                           |   |                               |     |                                   |   |   |   |

----

Table          of Contents

|  **KNIGHT                TRANSPORTATION, INC. AND SUBSIDIARIES** **Condensed                Consolidated Balance Sheets****(Unaudited)****(continued)****As                of June 30, 2005 and December 31, 2004****(In                thousands, except par values)**  |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                    |   |  June                30, 2005 |   |  December                31, 2004 |   |
|                                                                                                                                                                                                                                                                                    |   |   |   |   |   |
| **LIABILITIES                AND SHAREHOLDERS’ EQUITY**                                                                                                                                                                                                                           |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                    |   |   |   |   |   |
| CURRENT                LIABILITIES:                                                                                                                                                                                                                                                     |   |   |   |   |   |
| Accounts                payable                                                                                                                                                                                                                                                         |   | $ | 4,389 |   | $ | 5,044 |   |
| Accrued                payroll                                                                                                                                                                                                                                                          |   |   | 5,361 |   |   | 4,558 |   |
| Accrued                liabilities                                                                                                                                                                                                                                                      |   |   | 5,124 |   |   | 5,684 |   |
| Income                taxes payable                                                                                                                                                                                                                                                     |   |   | 4,556 |   |   | 0 |   |
| Claims                accrual                                                                                                                                                                                                                                                           |   |   | 27,091 |   |   | 23,904 |   |
| Dividend                payable                                                                                                                                                                                                                                                         |   |   | 1,137 |   |   | 0 |   |
|                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |
| Total                current liabilities                                                                                                                                                                                                                                                |   |   | 47,658 |   |   | 39,190 |   |
|                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |
| DEFERRED                INCOME TAXES                                                                                                                                                                                                                                                    |   |   | 73,152 |   |   | 72,660 |   |
|                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |
| Total                liabilities                                                                                                                                                                                                                                                        |   |   | 120,810 |   |   | 111,850 |   |
|                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |
| COMMITMENTS                AND CONTINGENCIES                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |
| SHAREHOLDERS’                EQUITY:                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |
| Preferred                stock, $0.01 par value;authorized                50,000 shares;none                issued and outstanding                                                                                                                                                      |   |   | - |   |   | - |   |
| Common                stock, $0.01 par value; authorized100,000                shares; 56,847 and 56,665issued                and outstanding at June 30, 2005and                December 31, 2004, respectively                                                                        |   |   | 568 |   |   | 567 |   |
| Additional                paid-in capital                                                                                                                                                                                                                                               |   |   | 84,167 |   |   | 82,117 |   |
| Retained                earnings                                                                                                                                                                                                                                                        |   |   | 233,775 |   |   | 208,333 |   |
|                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |
| Total                shareholders’ equity                                                                                                                                                                                                                                         |   |   | 318,510 |   |   | 291,017 |   |
|                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                    |   | $ | 439,320 |   | $ | 402,867 |   |
|                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |

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Table          of Contents

**KNIGHT      TRANSPORTATION, INC. AND SUBSIDIARIES**

**Condensed      Consolidated Statements of Income (Unaudited)**

**(In      thousands, except per share data)**

|                                                                                                             |   | Three                Months EndedJune                30, |    |                Six                Months EndedJune                30, |   |
|------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------|---------|----------------------------------------------------------------------------|--------|
|                                                                                                             |   |                                                     |    |                                                                       |   |   |   |   |   |
|                                                                                                             |   | 2005                                                     |    | 2004                                                                       |   | 2005 |   | 2004 |   |
| REVENUE                                                                                                          |   |                                                     |    |                                                                       |   |   |   |   |   |
| Revenue,                before fuel surcharge                                                                    |   | $                                                        | 119,722 |                                                                       | $      | 100,168 |   | $ | 230,797 |   | $ | 190,411 |   |
| Fuel                surcharge                                                                                    |   |                                                     | 14,145  |                                                                       |   | 6,980 |   |   | 25,252 |   |   | 11,049 |   |
| Total                revenue                                                                                     |   |                                                     | 133,867 |                                                                       |   | 107,148 |   |   | 256,049 |   |   | 201,460 |   |
| OPERATING                EXPENSES:                                                                               |   |                                                     |    |                                                                       |   |   |   |   |   |   |   |   |   |
| Salaries,                wages and benefits                                                                      |   |                                                     | 39,196  |                                                                       |   | 32,333 |   |   | 76,114 |   |   | 62,463 |   |
| Fuel                                                                                                             |   |                                                     | 30,192  |                                                                       |   | 20,418 |   |   | 56,033 |   |   | 37,132 |   |
| Operations                and maintenance                                                                        |   |                                                     | 8,171   |                                                                       |   | 6,128 |   |   | 15,803 |   |   | 11,789 |   |
| Insurance                and claims                                                                              |   |                                                     | 5,940   |                                                                       |   | 5,714 |   |   | 12,304 |   |   | 10,603 |   |
| Operating                taxes and licenses                                                                      |   |                                                     | 2,964   |                                                                       |   | 2,366 |   |   | 5,894 |   |   | 4,590 |   |
| Communications                                                                                                   |   |                                                     | 952     |                                                                       |   | 872 |   |   | 1,927 |   |   | 1,741 |   |
| Depreciation                and amortization                                                                     |   |                                                     | 12,786  |                                                                       |   | 9,573 |   |   | 25,096 |   |   | 18,471 |   |
| Lease                expense - revenue equipment                                                                 |   |                                                     | -       |                                                                       |   | 1,035 |   |   | - |   |   | 2,268 |   |
| Purchased                transportation                                                                          |   |                                                     | 7,127   |                                                                       |   | 7,549 |   |   | 13,611 |   |   | 14,137 |   |
| Gain                on sales of equipment                                                                        |   |                                                     | (691    | )                                                                          |   | - |   |   | (1,320 | ) |   | - |   |
| Miscellaneous                operating expenses                                                                  |   |                                                     | 2,416   |                                                                       |   | 2,228 |   |   | 4,625 |   |   | 3,947 |   |
|                                                                                                             |   |                                                     | 109,053 |                                                                       |   | 88,216 |   |   | 210,087 |   |   | 167,141 |   |
|                                                                                                             |   |                                                     |    |                                                                       |   |   |   |   |   |   |   |   |   |
| Income                from operations                                                                            |   |                                                     | 24,814  |                                                                       |   | 18,932 |   |   | 45,962 |   |   | 34,319 |   |
|                                                                                                             |   |                                                     |         |                                                                       |   |  |   |   |  |   |   |  |   |
| INTEREST                INCOME                                                                                   |   |                                                     | 143     |                                                                       |   | 83 |   |   | 253 |   |   | 207 |   |
|                                                                                                             |   |                                                     |    |                                                                       |   |   |   |   |   |   |   |   |   |
| Income                before taxes                                                                               |   |                                                     | 24,957  |                                                                       |   | 19,015 |   |   | 46,215 |   |   | 34,526 |   |
|                                                                                                             |   |                                                     |    |                                                                       |   |   |   |   |   |   |   |   |   |
| INCOME                TAXES                                                                                      |   |                                                     | (10,000 | )                                                                          |   | (7,600 | ) |   | (18,500 | ) |   | (13,800 | ) |
|                                                                                                             |   |                                                     |    |                                                                       |   |   |   |   |   |   |   |   |   |
| Net                income                                                                                        |   | $                                                        | 14,957  |                                                                       | $      | 11,415 |   | $ | 27,715 |   | $ | 20,726 |   |
|                                                                                                             |   |                                                     |    |                                                                       |   |   |   |   |   |   |   |   |   |
| Earnings                per common share and common share equivalent: Basic                                      |   |                                                     | 0.26    |                                                                       | $      | 0.20 |   |   | 0.49 |   | $ | 0.37 |   |
| Diluted                                                                                                          |   |                                                     | 0.26    |                                                                       | $      | 0.20 |   |   | 0.48 |   | $ | 0.36 |   |
|                                                                                                             |   |                                                     |    |                                                                       |   |   |   |   |   |   |   |   |   |
| Weighted                average number of common shares and common share equivalents                outstanding: |   |                                                     |    |                                                                       |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                            |   |                                                     | 56,815  |                                                                       |   | 56,340 |   |   | 56,781 |   |   | 56,298 |   |
| Diluted                                                                                                          |   |                                                     | 57,977  |                                                                       |   | 57,479 |   |   | 58,013 |   |   | 57,435 |   |

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Table          of Contents

| **KNIGHT                TRANSPORTATION, INC. AND                SUBSIDIARIES****Condensed                Consolidated Statements of Cash Flows (Unaudited)****(In                thousands)** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                          |   |   |   |
|                                                                                                                                                                                          |   | Six                Months EndedJune                30, |   |
|                                                                                                                                                                                          |   |   |   |
|                                                                                                                                                                                          |   | 2005 |   | 2004 |   |
| CASH                FLOWS FROM OPERATING ACTIVITIES                                                                                                                                           |   |   |   |   |   |
|                                                                                                                                                                                          |   |   |   |   |   |
| Net                income                                                                                                                                                                     |   | $ | 27,715 |   | $ | 20,726 |   |
| Adjustments                to reconcile net income to net cash provided by operating                activities:                                                                               |   |   |   |   |   |   |   |
| Depreciation                and amortization                                                                                                                                                  |   |   | 25,096 |   |   | 18,471 |   |
| Gain                on sales of equipment                                                                                                                                                     |   |   | (1,320 | ) |   | - |   |
| Non-cash                compensation expense for issuance of stock to certain members of                board of                directors                                                     |   |   | 15 |   |   | 13 |   |
| Provision                for allowance for doubtful accounts                                                                                                                                  |   |   | (65 | ) |   | 224 |   |
| Tax                benefit on stock option exercises                                                                                                                                          |   |   | 844 |   |   | 550 |   |
| Deferred                income taxes                                                                                                                                                          |   |   | (965 | ) |   | (20 | ) |
| Changes                in assets and liabilities:                                                                                                                                             |   |   |   |   |   |   |   |
| Increase                in accounts receivable                                                                                                                                                |   |   | (5,840 | ) |   | (8,932 | ) |
| Increase                in inventories and supplies                                                                                                                                           |   |   | (745 | ) |   | (396 | ) |
| (Increase)                decrease in prepaid expensesDecrease                in income tax receivableDecrease                (increase) in other assets                                      |   |   | (1,469)3,216598 |   |   | 3,4301,761(952 | ) |
| Decrease                in accounts payable                                                                                                                                                   |   |   | (1,781 | ) |   | (604 | ) |
| Increase                in accrued liabilities, claims accrual, and income taxes                payable                                                                                       |   |   | 7,986 |   |   | 11,831 |   |
|                                                                                                                                                                                          |   |   |   |   |   |   |   |
| Net                cash provided by operating activities                                                                                                                                      |   |   | 53,285 |   |   | 46,102 |   |
|                                                                                                                                                                                          |   |   |   |   |   |   |   |
| CASH                FLOW FROM INVESTING ACTIVITIES:                                                                                                                                           |   |   |   |   |   |   |   |
|                                                                                                                                                                                          |   |   |   |   |   |   |   |
| Purchase                of property and equipment                                                                                                                                             |   |   | (43,646 | ) |   | (51,240 | ) |
| Proceeds                from sales of equipment                                                                                                                                               |   |   | 6,050 |   |   | - |   |
| (Increase)                decrease in notes receivable                                                                                                                                        |   |   | (180 | ) |   | 438 |   |
|                                                                                                                                                                                          |   |   |   |   |   |   |   |
| Net                cash used in investing activities                                                                                                                                          |   |   | (37,776 | ) |   | (50,802 | ) |
|                                                                                                                                                                                          |

----

Table          of Contents

| **KNIGHT                  TRANSPORTATION, INC. AND SUBSIDIARIES****Condensed                  Consolidated Statements of Cash Flows (unaudited)                  (continued)****(In                  thousands)** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                              |   | Six                  Months EndedJune                  30, |   |
|                                                                                                                                                                                                              |   |   |   |   |   |
|                                                                                                                                                                                                              |   | 2005 |   | 2004 |   |
|  CASH                  FLOW FROM FINANCING ACTIVITIES:                                                                                                                                                       |   |   |   |   |   |
|                                                                                                                                                                                                              |   |   |   |   |   |
|                                                                                                                                                                                                              |   |   |   |   |   |
| Dividends                  paid                                                                                                                                                                                   |   |   | (1,136 | ) |   | -  |   |
| Proceeds                  from exercise of stock options                                                                                                                                                          |   |   | 1,193 |   |   | 630 |   |
|                                                                                                                                                                                                              |   |   |   |   |   |   |   |
| Net                  cash provided by financing activities                                                                                                                                                        |   |   | 57 |   |   | 630 |   |
|                                                                                                                                                                                                              |   |   |   |   |   |   |   |
| NET                  INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                                                                                                                             |   |   | 15,566 |   |   | (4,070 | ) |
| CASH                  AND CASH EQUIVALENTS,                                                                                                                                                                       |   |   |   |   |   |   |   |
| Beginning                  of period                                                                                                                                                                              |   |   | 25,357 |   |   | 40,550 |   |
|                                                                                                                                                                                                              |   |   |   |   |   |   |   |
| CASH                  AND CASH EQUIVALENTS, end of period                                                                                                                                                         |   | $ | 40,923 |   | $ | 36,480 |   |
|                                                                                                                                                                                                              |   |   |   |   |   |   |   |
|                                                                                                                                                                                                              |   |   |   |   |   |   |   |
| SUPPLEMENTAL                  DISCLOSURES:                                                                                                                                                                        |   |   |   |   |   |   |   |
|                                                                                                                                                                                                              |   |   |   |   |   |   |   |
| Noncash                  investing and financing transactions:                                                                                                                                                    |   |   |   |   |   |   |   |
| Equipment                  acquired in accounts payable                                                                                                                                                           |   | $ | 1,277 |   | $ | 2,522 |   |
| Net                  book value of equipment traded                                                                                                                                                               |   |   | - |   | $ | 16,974 |   |
|                                                                                                                                                                                                              |   |   |   |   |   |   |   |
| Cash                  Flow Information:                                                                                                                                                                           |   | $ | 10,851 |   | $ | 5,746 |   |
| Income                  taxes paid                                                                                                                                                                                |   |   |   |   |   |   |   |
|                                                                                                                                                                                                              |   |   |  |   |   |  |   |

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Table          of Contents

**KNIGHT      TRANSPORTATION, INC. AND      SUBSIDIARIES**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS **
**(Unaudited)**

**Note      1.**
**Financial      Information**

**Note      2.**
**Stock-Based      Compensation**

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Table          of Contents

|                                                                                                                                                           |   | Three                Months EndedJune                30, |   | Six                Months EndedJune                30, |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------|--------|--------------------------------------------------------|--------|
|                                                                                                                                                           |   |                                                     |   |                                                   |   |   |   |   |   |
|                                                                                                                                                           |   | 2005                                                     |   | 2004                                                   |   | 2005 |   | 2004 |   |
|                                                                                                                                                           |   |                                                     |   |                                                   |   |   |   |   |   |
| Net                income, as reported                                                                                                                         |   | $                                                        | 14,957 |                                                   | $      | 11,415 |   | $ | 27,715 |   | $ | 20,726 |   |
|                                                                                                                                                           |   |                                                     |   |                                                   |   |   |   |   |   |   |   |   |   |
| Deduct                total stock-based compensation expense determined under fair-value                based                method for all awards, net of tax |   |                                                     | (646   | )                                                      |   | (326 | ) |   | (930 | ) |   | (586 | ) |
|                                                                                                                                                           |   |                                                     |   |                                                   |   |   |   |   |   |   |   |   |   |
| Pro                forma net income                                                                                                                            |   | $                                                        | 14,311 |                                                   | $      | 11,089 |   | $ | 26,785 |   | $ | 20,140 |   |
|                                                                                                                                                           |   |                                                     |   |                                                   |   |   |   |   |   |   |   |   |   |
| Basic                earnings per share:                                                                                                                       |   |                                                     |   |                                                   |   |   |   |   |   |   |   |   |   |
| As                reported                                                                                                                                     |   | $                                                        | 0.26   |                                                   | $      | 0.20 |   | $ | 0.49 |   | $ | 0.37 |   |
| Pro                forma                                                                                                                                       |   | $                                                        | 0.25   |                                                   | $      | 0.20 |   | $ | 0.47 |   | $ | 0.36 |   |
|                                                                                                                                                           |   |                                                     |   |                                                   |   |   |   |   |   |   |   |   |   |
| Diluted                earnings per share:                                                                                                                     |   |                                                     |   |                                                   |   |   |   |   |   |   |   |   |   |
| As                reported                                                                                                                                     |   | $                                                        | 0.26   |                                                   | $      | 0.20 |   | $ | 0.48 |   | $ | 0.36 |   |
| Pro                forma                                                                                                                                       |   | $                                                        | 0.25   |                                                   | $      | 0.19 |   | $ | 0.46 |   | $ | 0.35 |   |

**Note      3.**
**Earnings      Per Share (In thousands, except per share data)**

|                                                                                                                                      |   | Three                    Months EndedJune                    30, |   | Six                    Months EndedJune                    30, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------|--------|----------------------------------------------------------------|--------|
|                                                                                                                                      |   |                                                             |   |                                                           |   |   |   |   |   |
|                                                                                                                                      |   | 2005                                                             |   | 2004                                                           |   | 2005 |   | 2004 |   |
|                                                                                                                                      |   |                                                             |   |                                                           |   |   |   |   |   |
| Weighted                    average common shares outstanding - basic                                                                     |   |                                                             | 56,815 |                                                           |   | 56,340 |   |   | 56,781 |   |   | 56,298 |   |
|                                                                                                                                      |   |                                                             |   |                                                           |   |   |   |   |   |   |   |   |   |
| Effect                    of stock options                                                                                                |   |                                                             | 1,162  |                                                           |   | 1,139 |   |   | 1,232 |   |   | 1,137 |   |
|                                                                                                                                      |   |                                                             |   |                                                           |   |   |   |   |   |   |   |   |   |
| Weighted                    average common share and common share equivalents outstanding                    -                    diluted |   |                                                             | 57,977 |                                                           |   | 57,479 |   |   | 58,013 |   |   | 57,435 |   |
|                                                                                                                                      |   |                                                             |   |                                                           |   |   |   |   |   |   |   |   |   |
| Net                    income                                                                                                             |   | $                                                                | 14,957 |                                                           | $      | 11,415 |   | $ | 27,715 |   | $ | 20,726 |   |
|                                                                                                                                      |   |                                                             |   |                                                           |   |   |   |   |   |   |   |   |   |
| Earnings                    per common share and common share equivalent                                                                  |   |                                                             |   |                                                           |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                                     |   | $                                                                | 0.26   |                                                           | $      | 0.20 |   | $ | 0.49 |   | $ | 0.37 |   |
| Diluted                                                                                                                                   |   | $                                                                | 0.26   |                                                           | $      | 0.20 |   | $ | 0.48 |   | $ | 0.36 |   |
|                                                                                                                                      |   |                                                             |   |                                                           |   |   |   |   |   |   |   |   |   |

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**Note      4.**
**Segment      Information**

**Note      5.**
**Derivative      Instruments **

**Note      6.**
**New      Accounting Pronouncements**

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**Note      7.**
**Commitments      and Contingencies**

**Note      8.**
**Stock      Split**

**Note      9.**
**Dividends**

**Note      10. Other Assets**

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**Item      2.**
**Management's      Discussion and Analysis of Financial Condition and Results of      Operations**

**Cautionary      Note Regarding Forward-Looking Statements**

*Except      for certain historical information contained herein, the following discussion      contains “forward-looking statements” within the meaning of Section 21E of the      Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Section      27A of the Securities Act of 1933, as amended, that involve risks, assumptions,      and uncertainties which are difficult to predict. All statements, other than      statements of historical fact, are statements that could be deemed      forward-looking statements, including without limitation: any projections of      earnings, revenues, or other financial items; any statement of plans,      strategies, and objectives of management for future operations; any statements      concerning proposed new services or developments; any statements regarding      future economic conditions or performance; and any statements of belief and      any      statement of assumptions underlying any of the foregoing. Words such as“believe,”“may,”“will,”“could,”“should,”“likely,”“expects,”“estimates,”“anticipates,”“projects,”“plans,”“intends,”“hopes,”“potential,”“continue,”      and “future” and variations of these words, or similar expressions, are intended      to identify such forward-looking statements. Actual events or results could      differ materially from those discussed in forward-looking statements. Factors      that could cause or contribute to such differences include, but are not limited      to, those discussed in the section entitled “Factors That May Affect Future      Results,” set forth below. We do not assume, and specifically disclaim, any      obligation to update any forward-looking statement contained in this      report.*

**Introduction**

***Business      Overview***

***Operating      and Growth Strategy***

|  ·  | *Focusing                on Regional Operations*.                We seek to operate primarily in high-density, predictable traffic                lanes in                selected geographic regions. We believe our regional operations allow                us                to obtain greater freight volumes and higher revenue per mile, and                also                enhance safety and driver recruitment and                retention.                                                                                                                                                      |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|  ·  | *Maintaining                Operating Efficiencies and                Controlling Costs*.                We primarily focus on operating in distinct geographic and shipping                markets in order to achieve increased penetration of targeted service                areas and higher equipment utilization in dense traffic lanes. We                actively                seek to control costs by, among other things, operating a modern                equipment                fleet, maintaining a high tractor to non-driver employee ratio, and                regulating vehicle speed. |

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| ·        | *Providing                a High Level of Customer                Service*.                We seek to compete on the basis of service in addition to price,                and offer                our customers a broad range of services to meet their specific needs,                including multiple pick ups and deliveries, on-time pick ups and                deliveries within narrow time frames, dedicated fleet and personnel,                and                specialized driver training.                                                                                                                                                                |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|  ·  | *Using                Technology to Enhance Our Busines*s.                Our tractors are equipped with satellite-based tracking and communications                systems to permit us to stay in contact with our drivers, obtain                load                position updates, and provide our customers with freight visibility.                A                significant number of our trailers are equipped with tracking technology                to allow us to manage our trailers more effectively, maintain a low                trailer to tractor ratio, efficiently assess detention fees, and                minimize                cargo loss. |

***Revenue      and Expenses***

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***Recent      Results of Operations and Quarter-End Financial      Condition***

|   | · | Revenue,                before fuel surcharge, increased 19.5%, to $119.7 million from $100.2                million; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------|

|   | · | Net                income increased 31.0%, to $15.0 million from $11.4 million;                and |
|--------|--------|----------------------------------------------------------------------------------------------------|

|   | · | Net                income per diluted share increased 30.0% to $0.26 from                $0.20. |
|--------|--------|-------------------------------------------------------------------------------------------------|

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**Results      of Operations**

|                                             |   |  (Total                revenue)**Three-Month****Period                Ended****June                30,** |   | (Revenue,                beforefuel                surcharge)**Three-Month****Period                Ended****June                30,** |   |  (Total                revenue)**Six-Month****Period                Ended****June                30,** |   | (Revenue,                beforefuel                surcharge)**Six-Month****Period                Ended****June 30,** |     |
|--------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------|----------|
|                                             |   |                                                                                                          |   |                                                                                                                                   |   |                                                                                                        |   |                                                                                                                       |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                             |   | **2005**                                                                                                      |   | **2004**                                                                                                                               |   | **2005**                                                                                                    |   |                                                                                                                       | **2004** |   |   | **2005** |   | **2004** |   | **2005** |   |   | **2004** |   |   |
|                                             |   |                                                                                                          |   |                                                                                                                                   |   |                                                                                                        |   |                                                                                                                       |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue                                          |   |                                                                                                          | 100.0  | %                                                                                                                                      |   | 100.0                                                                                                       | %      |                                                                                                                       | 100.0    | % |   |   |   |   | 100.0 | % |   |   |   |   | 100.0 | % |   | 100.0 | % |   | 100.0 | % |   |   |   |   | 100.0 | % |   |   |   |
|                                             |   |                                                                                                          |   |                                                                                                                                   |   |                                                                                                        |   |                                                                                                                       |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                expenses:               |   |                                                                                                          |   |                                                                                                                                   |   |                                                                                                        |   |                                                                                                                       |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Salaries,                wages and benefits      |   |                                                                                                          | 29.3   |                                                                                                                                   |   | 30.2                                                                                                        |   |                                                                                                                       | 32.7     |   |   |   |   |   | 32.3 |   |   |   |   |   | 29.7 |   |   | 31.0 |   |   | 33.0 |   |   |   |   |   | 32.8 |   |   |   |   |
| Fuel                                             |   |                                                                                                          | 22.6   |                                                                                                                                   |   | 19.1                                                                                                        |   |                                                                                                                       | 13.4     |  (1) |   |   |   |   | 13.4 |  (1) |   |   |   |   | 21.9 |   |   | 18.4 |   |   | 13.3 |  (1) |   |   |   |   | 13.7 |  (1) |   |   |   |
| Operations                and maintenance        |   |                                                                                                          | 6.1    |                                                                                                                                   |   | 5.7                                                                                                         |   |                                                                                                                       | 6.8      |   |   |   |   |   | 6.1 |   |   |   |   |   | 6.2 |   |   | 5.9 |   |   | 6.8 |   |   |   |   |   | 6.2 |   |   |   |   |
| Insurance                and claims              |   |                                                                                                          | 4.4    |                                                                                                                                   |   | 5.3                                                                                                         |   |                                                                                                                       | 5.0      |   |   |   |   |   | 5.7 |   |   |   |   |   | 4.8 |   |   | 5.3 |   |   | 5.3 |   |   |   |   |   | 5.6 |   |   |   |   |
| Operating                taxes and licenses      |   |                                                                                                          | 2.2    |                                                                                                                                   |   | 2.2                                                                                                         |   |                                                                                                                       | 2.5      |   |   |   |   |   | 2.4 |   |   |   |   |   | 2.3 |   |   | 2.3 |   |   | 2.6 |   |   |   |   |   | 2.4 |   |   |   |   |
| Communications                                   |   |                                                                                                          | 0.7    |                                                                                                                                   |   | 0.8                                                                                                         |   |                                                                                                                       | 0.8      |   |   |   |   |   | 0.9 |   |   |   |   |   | 0.8 |   |   | 0.9 |   |   | 0.9 |   |   |   |   |   | 0.9 |   |   |   |   |
| Depreciation                and amortization     |   |                                                                                                          | 9.6    |                                                                                                                                   |   | 8.9                                                                                                         |   |                                                                                                                       | 10.7     |   |   |   |   |   | 9.6 |   |   |   |   |   | 9.8 |   |   | 9.2 |   |   | 10.9 |   |   |   |   |   | 9.7 |   |   |   |   |
| Lease                expense - revenue equipment |   |                                                                                                          | 0.0    |                                                                                                                                   |   | 1.0                                                                                                         |   |                                                                                                                       | 0.0      |   |   |   |   |   | 1.0 |   |   |   |   |   | 0.0 |   |   | 1.1 |   |   | 0.0 |   |   |   |   |   | 1.2 |   |   |   |   |
| Purchased                transportation          |   |                                                                                                          | 5.3    |                                                                                                                                   |   | 7.0                                                                                                         |   |                                                                                                                       | 6.0      |   |   |   |   |   | 7.5 |   |   |   |   |   | 5.3 |   |   | 7.0 |   |   | 5.9 |   |   |   |   |   | 7.4 |   |   |   |   |
| (Gain)                loss on sales of Equip.    |   |                                                                                                          | (0.5   | )                                                                                                                                      |   | -                                                                                                           |   |                                                                                                                       | (0.6     | ) |   |   |   |   | - |   |   |   |   |   | (0.5 | ) |   | - |   |   | (0.6 | ) |   |   |   |   | - |   |   |   |   |
| Miscellaneous                operating expenses  |   |                                                                                                          | 1.8    |                                                                                                                                   |   | 2.1                                                                                                         |   |                                                                                                                       | 2.0      |   |   |   |   |   | 2.2 |   |   |   |   |   | 1.8 |   |   | 2.0 |   |   | 2.0 |   |   |   |   |   | 2.1 |   |   |   |   |
| Total                operating expenses          |   |                                                                                                          | 81.5   |                                                                                                                                   |   | 82.3                                                                                                        |   |                                                                                                                       | 79.3     |   |   |   |   |   | 81.1 |   |   |   |   |   | 82.1 |   |   | 83.0 |   |   | 80.1 |   |   |   |   |   | 82.0 |   |   |   |   |
| Income                from operations            |   |                                                                                                          | 18.5   |                                                                                                                                   |   | 17.7                                                                                                        |   |                                                                                                                       | 20.7     |   |   |   |   |   | 18.9 |   |   |   |   |   | 17.9 |   |   | 17.0 |   |   | 19.9 |   |   |   |   |   | 18.0 |   |   |   |   |
| Net                interest income               |   |                                                                                                          | 0.1    |                                                                                                                                   |   | 0.0                                                                                                         |   |                                                                                                                       | 0.1      |   |   |   |   |   | 0.0 |   |   |   |   |   | 0.1 |   |   | 0.0 |   |   | 0.1 |   |   |   |   |   | 0.0 |   |   |   |   |
| Income                before income taxes        |   |                                                                                                          | 18.6   |                                                                                                                                   |   | 17.7                                                                                                        |   |                                                                                                                       | 20.8     |   |   |   |   |   | 18.9 |   |   |   |   |   | 18.0 |   |   | 17.0 |   |   | 20.0 |   |   |   |   |   | 18.0 |   |   |   |   |
| Income                taxes                      |   |                                                                                                          | 7.5    |                                                                                                                                   |   | 7.1                                                                                                         |   |                                                                                                                       | 8.3      |   |   |   |   |   | 7.5 |   |   |   |   |   | 7.2 |   |   | 6.7 |   |   | 8.0 |   |   |   |   |   | 7.1 |   |   |   |   |
| Net                income                        |   |                                                                                                          | 11.1   |                                                                                                                                   |   | 10.7                                                                                                        |   |                                                                                                                       | 12.5     |   |   |   |   |   | 11.4 |   |   |   |   |   | 10.8 |   |   | 10.3 |   |   | 12.0 |   |   |   |   |   | 10.9 |   |   |   |   |
|                                             |   |                                                                                                          |   |                                                                                                                                   |   |                                                                                                        |   |                                                                                                                       |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                             |   |                                                                                                          |   |                                                                                                                                   |   |                                                                                                        |   |                                                                                                                       |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (1)                                                                                        | Net                  of fuel surcharge. |
|--------------------------------------------------------------------------------------------|-----------------------------------------|
| There                  are minor rounding differences in the above                  table. |

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**Comparison of Six Months and Three Months Ended      June      30, 2005 to Six Months and Three Months Ended June 30,      2004**

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**Liquidity      and Capital Resources**

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**Off-Balance      Sheet Transactions**

**Critical      Accounting Policies and Estimates**

**Revenue      Recognition.**

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**Depreciation.**

**Claims      Accrual.**
** **

**Accounting      for Income Taxes.**

**Factors      That May Affect Future Results**

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**General      Economic and Industry Conditions**

**Risks      Associated with Our Growth. **

**Diversification.      **

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**Insurance      and Claims. **

**Revenue      Equipment. **

**Inflation.      **

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**Driver      Recruiting and Retention. **

**Computer      and Communications systems**
**.      **

**Seasonality.      **

**Item      3.**  **Quantitative      and Qualitative Disclosures About Market Risk**

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**Interest      Rate Risk**

**Commodity      Price Risk**

**Item      4.**
**Controls      and Procedures**

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**PART II - OTHER INFORMATION**

**Item      1.** **Legal      Proceedings**

**Item      2.** **Unregistered      Sales of Equity Securities and **
**Use      **
**of      Proceeds**

**Item      3.** **Defaults      Upon Senior Securities**

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

|                            |   |    **Votes                Cast** |       |    **Votes                For** |   |   **Votes****Withheld** |   |
|---------------------------------|--------|-------------------------------------------------|------------|------------------------------------------------|--------|-----------------------------------|--------|
|                            |   |                                            |       |                                           |   |                              |   |   |   |   |
| Timothy                M. Kohl  |   |                                            | 29,231,996 |                                           |   | 29,231,996                        |   |   | 13,064,128 |   |
| Donald                A. Bliss  |   |                                            | 39,337,982 |                                           |   | 39,337,982                        |   |   | 2,958,142 |   |
| Mark                A. Scudder  |   |                                            | 24,284,283 |                                           |   | 24,284,283                        |   |   | 18,011,841 |   |
| Kathryn                L. Munro |   |                                            | 41,122,899 |                                           |   | 41,122,899                        |   |   | 1,183,255 |   |

**Item      5.**
**Other      Information**

**Item      6.**
**Exhibits**

| Exhibit                  No. |   | Description                                           |
|------------------------------|--------|-------------------------------------------------------|
|                         |   |                                                  |
| Exhibit                  3   |   | Articles                  of Incorporation and Bylaws |
|                         |   |                                                  |

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|                        | (3.1)   | Restated                  Articles of Incorporation of the Company (Incorporated by reference                  to                  Exhibit 3.1 to the Company’s Registration Statement on Form S-1. No                  33-83534)                                                  |
|-----------------------------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                        |    |                                                                                                                                                                                                                                                                                     |
|                        | (3.1.1) | First                  Amendment to Restated Articles of Incorporation of the Company                  (Incorporated by reference to Exhibit 3.1.1 to the Company’s report on                  Form 10-K for the period ended December 31, 2000)                              |
|                        |    |                                                                                                                                                                                                                                                                                     |
|                        | (3.1.2) | Second                  Amendment to Restated Articles of Incorporation of the Company                  (Incorporated by reference to Exhibit 3.1.2 to the Company’s Registration                  Statement on Form S-3 No. 333-72130)                                            |
|                        |    |                                                                                                                                                                                                                                                                                     |
|                        | (3.1.3) | Third                  Amendment to Restated Articles of Incorporation of the Company                  (Incorporated by reference to Exhibit 3.1.3 to the Company’s Report on                  Form 10-K for the period ended December 31, 2002)                                   |
|                        |    |                                                                                                                                                                                                                                                                                     |
|                        | (3.2)   | Restated                  Bylaws of the Company (Incorporated by reference to Exhibit 3.2                  to the                  Company’s Registration Statement on Form S-3 No.                  333-72130)                                                                    |
|                        |    |                                                                                                                                                                                                                                                                                     |
|                        | (3.2.1) | First                  Amendment to Restated Bylaws of the Company (Incorporated by reference                  to                  Exhibit 3.2.1 to the Company’s Report on Form 10-K for the period ended                  December 31, 2002)                                     |
|                        |    |                                                                                                                                                                                                                                                                                     |
| Exhibit                  4  |    | Instruments                  defining the rights of security holders,                  including indentures                                                                                                                                                                              |
|                        |    |                                                                                                                                                                                                                                                                                     |
|                        | (4.1)   | Articles                  4, 10 and 11 of the Restated Articles of Incorporation of the Company                  (Incorporated by reference to Exhibit 3.1 to this Report on Form                  10-Q)                                                                                 |
|                        |    |                                                                                                                                                                                                                                                                                     |
|                        | (4.2)   | Sections                  2 and 5 of the Restated Bylaws of the Company (Incorporated by                  reference                  to Exhibit 3.2 to this Report on Form 10-Q)                                                                                                         |
|                        |    |                                                                                                                                                                                                                                                                                     |
| Exhibit                  11 |    | Schedule                  of Computation of Net Income Per Share (Incorporated by reference                  from                  Note 3, Net Income Per Share, in the Notes To Consolidated Financial                  Statements contained in this Report on Form 10-Q)               |
|                        |    |                                                                                                                                                                                                                                                                                     |
| Exhibit                  31 |    | Section                  302 Certifications                                                                                                                                                                                                                                              |
|                        |    |                                                                                                                                                                                                                                                                                     |
|                        | (31.1)  | Certification                  pursuant to Item 601(b)(31) of Regulation S-K, as adopted pursuant                  to                  Section 302 of the Sarbanes-Oxley Act of 2002, by Kevin P. Knight,                  the                  Company’s Chief Executive Officer  |
|                        |    |                                                                                                                                                                                                                                                                                     |
|                        | (31.2)  | Certification                  pursuant to Item 601(b)(31) of Regulation S-K, as adopted pursuant                  to                  Section 302 of the Sarbanes-Oxley Act of 2002, by David A. Jackson,                  the                  Company’s Chief Financial Officer |
|                        |    |                                                                                                                                                                                                                                                                                     |
| Exhibit                  32 |    | Section                  906 Certifications                                                                                                                                                                                                                                              |
|                        |    |                                                                                                                                                                                                                                                                                     |
|                        | (32.1)  | Certification                  pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section                  906 of                  the Sarbanes-Oxley Act of 2002, by Kevin P Knight, the Company’s Chief                  Executive Officer                               |
|                        |    |                                                                                                                                                                                                                                                                                     |
|                        | (32.2)  | Certification                  pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section                  906 of                  the Sarbanes-Oxley Act of 2002, by David A. Jackson, the Company’s Chief                  Financial Officer                             |

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**SIGNATURES**

|                                            | KNIGHT                TRANSPORTATION, INC. |
|-------------------------------------------------|--------------------------------------------|
|   Date:                August 5, 2005 |   By:                            |   /s/                Kevin P. Knight |
|                                            |                                       | Kevin                P. KnightChief                Executive Officer, in his capacity as such and on behalf of the                registrant |
|                                            |                                       |   |
|   Date:                August 5, 2005 |   By:                            |   /s/                David A. Jackson |
|                                            |                                       | David                A. JacksonChief                Financial Officer, in his capacity as such and on behalf of the                registrant |

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