United States Securities and Exchange Commission
                             Washington, D.C. 20549
                     
                                   FORM 10-Q
                               
(Mark One)
    X            Quarterly Report Pursuant to Section 13 or 15(d) of the
                        Securities Exchange Act of 1934

                  For the Quarterly Period Ended June 30, 1998
                               
                                       or

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

                For the Transition period from ______  to ______
                               
                               
                        Commission File Number: 0-16836
                               
                               
                                JETSTREAM, L.P.
              Exact Name of Registrant as Specified in its Charter
                               
                               
          Delaware                                      84-1053359
State or Other Jurisdiction of              I.R.S. Employer Identification No.
Incorporation or Organization

3 World Financial Center, 29th Floor,
New York, NY    Attn: Andre Anderson                       10285
Address of Principal Executive Offices                    Zip Code

                                 (212) 526-3183
               Registrant's Telephone Number, Including Area Code

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

                              Yes    X    No ____




Balance Sheets                         At June 30,    At December 31,
                                             1998               1997
Assets
Aircraft, at cost:                     $25,987,000       $25,987,000
Less accumulated depreciation          (18,295,636)      (16,689,816)
                                         7,691,364         9,297,184
Cash and cash equivalents                1,906,292         2,131,335
Rent receivable                            231,094            79,053
        Total Assets                    $9,828,750       $11,507,572
Liabilities and Partners' Capital
Liabilities:
  Accounts payable and accrued expenses  $ 351,115          $307,831
  Distribution payable                   1,097,672         1,433,890
  Deferred revenue                          90,000            90,000
  Security deposit                          50,000            50,000
        Total Liabilities                1,588,787         1,881,721

Partners' Capital (Deficit):
General Partners                          (894,311)         (880,452)
Limited Partners (4,895,005 units
                   outstanding)          9,134,274        10,506,303
Total Partners' Capital                  8,239,963         9,625,851
Total Liabilities and Partners'
 Capital                                $9,828,750      $ 11,507,572






Statement of Partners' Capital (Deficit)
For the six months ended June 30, 1998
                                    General        Limited
                                   Partners        Partners        Total
Balance at December 31, 1997      $(880,452)    $10,506,303    $9,625,851
Net income                            7,609         753,287       760,896
Cash distributions                  (21,468)     (2,125,316)   (2,146,784)
Balance at June 30, 1998         $ (894,311)     $9,134,274    $8,239,963


Statements of Operations     Three months ended         Six months ended
                                   June 30,                 June 30,
                               1998        1997         1998        1997
Income
Rental                    $1,317,281   $1,312,504   $2,631,615   $2,501,562
Other                             _           230          128       99,574
Interest                      27,414       32,444       52,760       63,132
      Total Income         1,344,695    1,345,178    2,684,503    2,664,268
Expenses
Depreciation                 802,910      802,910    1,605,820    1,605,830
Management fees              107,017       85,991      218,193      208,466
General and administrative    52,485       59,383       94,848      112,336
Operating                         _       222,918        4,746      224,415
      Total Expenses         962,412    1,171,202    1,923,607    2,151,047
      Net Income           $ 382,283   $  173,976   $  760,896   $  513,221
Net Income Allocated:
To the General Partners    $   3,823   $    1,740   $    7,609   $    5,132
To the Limited Partners      378,460      172,236      753,287      508,089
                           $ 382,283   $  173,976   $  760,896   $  513,221
Per limited partnership unit
(4,895,005 outstanding)         $.08         $.04         $.15         $.10


Statements of Cash Flows
For the six months ended June 30,                1998                1997
Cash Flows From Operating Activities
Net income                                  $ 760,896           $  513,221
Adjustments to reconcile net income
to net cash provided by operating
activities:
  Depreciation                              1,605,820            1,605,830
  Increase (decrease) in cash arising
  from changes in operating assets
  and liabilities:
        Rent receivable                      (152,041)             463,725
        Interest receivable                      _                     127
        Accounts payable and accrued
        expenses                               43,284             (102,289)
        Deferred revenue                         _                  35,000
Net cash provided by operating activities   2,257,959            2,515,614
Cash Flows From Investing Activities
Loan receivable                                  _                  38,721
Net cash provided by investing activities        _                  38,721
Cash Flows From Financing Activities
Cash distributions                         (2,483,002)          (2,557,242)
Net cash used for financing activities     (2,483,002)          (2,557,242)
Net decrease in cash and cash equivalents    (225,043)              (2,907)
Cash and cash equivalents, beginning
of period                                   2,131,335            1,573,594
Cash and cash equivalents, end of period   $1,906,292           $1,570,687

Notes to the Financial Statements

The unaudited financial statements should be read in conjunction
with the Partnership's annual 1997 audited financial statements
within Form 10-K.

The unaudited financial statements include all normal and reoccurring
adjustments which are, in the opinion of management, necessary to present a
fair statement of financial position as of June 30, 1998 and the results of
operations for the three and six months ended June 30, 1998 and 1997 and cash
flows for the six months ended June 30, 1998 and 1997 and the statement of
partners' capital (deficit) for the six months ended June 30, 1998.  Results of
operations for the period are not necessarily indicative of the results to be
expected for the full year.

No significant events have occurred subsequent to fiscal year 1997, which
require disclosure in this interim report per Regulation S-X, Rule 10-01,
Paragraph (a)(5).

Part I, Item 2.Management's Discussion and Analysis of Financial Condition
and Results of Operations

Liquidity and Capital Resources
As of June 30, 1998, five of the Partnership's six Aircraft were on-lease.  Two
aircraft were on-lease to Eastwind Airlines ("Eastwind"), one aircraft was
on-lease to Delta Air Lines, Inc. ("Delta"), one aircraft was on-lease to
Continental Airlines ("Continental"), and one aircraft was on- lease to Trans
World Airlines Inc. ("TWA").  TWA terminated its lease on the Partnership's
sixth aircraft effective June 30, 1998.

The Partnership's two 737-200 non-advanced aircraft are currently onlease to
Eastwind.  Under the terms of the lease agreements, which expire on November
30, 1999, Eastwind is required to pay the Partnership a monthly lease rate of
$35,000 per aircraft.  In addition, the airline is required to pay the
Partnership an airframe maintenance charge based on usage.  Eastwind is
delinquent on rental payments totaling $150,000 and has recently contacted the
General Partners to renegotiate the terms of its lease.  The General Partners
will aggressively pursue all remedies available to the Partnership with respect
to the collection of these rental payments.

The lease with Delta for the Partnership's 737-200 advanced aircraft expires in
September 1999.  In accordance with the terms of the lease agreement, Delta
pays the Partnership a monthly lease rate of $80,000.

Continental makes monthly lease payments to the Partnership of $180,000.  The
lease with Continental was previously scheduled to expire in 1998.  However, in
September 1997, the Partnership and Continental agreed to extend the lease
through March 1999, with the remaining terms of the lease unchanged.
Continental has an option to renew this lease for an additional year.

The Partnership's two remaining 727-200 non-advanced aircraft were leased on a
month-to-month basis by TWA at a monthly lease rate of $32,500 .  TWA
terminated its lease on one of these aircraft effective June 30, 1998 and
returned the plane in July. TWA has indicated that it intends to terminate the
lease on the second aircraft as well and return the aircraft to the Partnership
in August 1998.  The General Partners will pursue all avenues to either
re-lease or sell these aircraft to another airline.

At June 30, 1998, the Partnership had unrestricted cash and cash equivalents of
$1,906,292, compared to $2,131,335 at December 31, 1997.  The decrease in cash
and cash equivalents is due to the payment of distributions to limited partners
exceeding cash flow from operations.

At June 30, 1998, the Partnership had a rent receivable balance totalling
$231,094, compared to $79,053 at December 31, 1997. The increase is primarily
due to timing of maintenance reserve payments owed to the Partnership by
Eastwind.

Accounts payable and accrued expenses totaled $351,115 at June 30, 1998 as
compared to $307,831 at December 31, 1997.  The increase is primarily
attributable to the timing of management fee payments.

On May 21, 1998, the Partnership paid a distribution to the Unitholders for the
period from January 1, 1998 to March 31, 1998, in the amount of $1,049,112, or
approximately $.20 per Unit.  At June 30, 1998 the Partnership had a
distribution payable to Unitholders of $1,097,672, or approximately $.22 per
Unit.  This distribution was paid on August 4, 1998.  Future cash distributions
will be determined on a quarterly basis after an evaluation of the
Partnership's current and expected financial position, and are likely to be
reduced due to the termination of leases by TWA on the Partnership's two
727-200 non-advanced aircraft.

Results of Operations
Substantially all of the Partnership's revenue for the six months ended June
30, 1998 was generated from the leasing of the Partnership's aircraft to
commercial air carriers under triple net operating leases.  The balance of the
Partnership's revenue during the second quarter of 1998 consisted of interest
income.

For the three and six months ended June 30, 1998, the Partnership generated net
income of $382,283 and $760,896, respectively, compared to net income of
$173,976 and $513,221 for the corresponding periods in 1997.  The increase for
the 1998 periods is primarily attributable to non-recurring operating expenses
associated with repair and maintenance work completed on the two aircraft on
lease to Eastwind during the second quarter of 1997.

Rental income for the three and six months ended June 30, 1998 was $1,317,281
and $2,631,615 respectively, compared to $1,312,504 and $2,501,562 for the
corresponding periods in 1997. The increase in rental income for the six-month
period was primarily due to the fact that the two aircraft leased by Eastwind
were not operated on a daily basis for the first two months of 1997 because of
maintenance-related issues.

Other income for the three and six months ended June 30, 1998 was $0 and $128,
respectively, compared to other income of $230 and $99,574 for the
corresponding periods in 1997.  The higher balance for the 1997 six-month
period represents payment received from USAirways, Inc. ("USAir") for the
settlement and release claims relating to the lease and maintenance of the
Boeing 737200 aircraft previously on lease with USAirways.

Interest income for the three and six months ended June 30, 1998 was $27,414,
and $52,760, respectively, compared to $32,444 and $63,132 for the
corresponding periods in 1997.  The decrease is primarily attributable to a
decrease in the Partnership's average cash balances during the 1998 periods.

General and administrative expenses totalled $52,485 and $94,848 for the three
and six months ended June 30, 1998, compared to $59,383 and $112,336 for the
corresponding periods in 1997.  The decrease is primarily due to a decrease in
postage and printing costs and legal expenses, partially offset by an increase
in audit fees.

Operating expenses for the three and six months ended June 30, 1998 totalled $0
and $4,746 compared to $222,918 and $224,415 for the corresponding periods in
1997.  The increase for the three and six-month periods is primarily
attributable to non- recurring operating expenses associated with repair and
maintenance work completed on the two aircraft on lease to Eastwind during the
second quarter of 1997.

Part II        Other Information

Items 1-5      Not applicable.

Item 6         Exhibits and reports on Form 8-K.

               (a)  Exhibits -

                    (27) Financial Data Schedule

               (b)  Reports on Form 8-K - No reports on Form 8-K were
                    filed during the quarter ended June 30, 1998.


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



                              JETSTREAM, L.P.
                    BY:       JET AIRCRAFT LEASING INC.
                              General Partner



Date:  August 14, 1998        BY:      /s/ Michael T. Marron
                              Name:    Michael T. Marron
                              Title:   Director, President and
                                       Chief Financial Officer