WASHINGTON, D.C.  20549

                                  FORM 8-K

                               CURRENT REPORT

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

Date of Report (Date of earliest event reported)         February 24, 1998

                             YELLOW CORPORATION
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           (Exact name of registrant as specified in its charter)

        Delaware                     0-12255              48-0948788    
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(State or other jurisdiction        (Commission          (IRS Employer  
     of incorporation)             File Number)      Identification No.)

      10990 Roe Avenue, P. O. Box 7563,  Overland Park, Kansas   66207
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            (Address of principal executive offices)           (Zip Code)

Registrant's telephone number, including area code      (913) 696-6100

                                 No Changes.
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       (Former name or former address, if changed since last report.)


Item 5.  Other Events

On February 24, 1998, Yellow Corporation announced that shippers' concerns over 
the possibility of a strike, prior to the recent tentative labor settlement,
have adversely affected January and February business levels at Yellow Freight
System.  As a result, Yellow Corporation expects to report operating results
below expectations for the quarter ending March 31, 1998.

A tentative settlement between the International Brotherhood of Teamsters and   
the bargaining association for the trucking industry was announced on February
8.  While the tentative settlement has calmed shippers' strike fears, it is
uncertain as to how long it will take to redirect freight lost to nonunion
carriers, back to Yellow.  In addition some shippers appear to be waiting for
member ratification before redirecting their freight back.

Historically, the first quarter is the seasonally weakest period of the year at 
Yellow Freight.  However, this year Yellow Freight System has had the added
pressure of concerns about the labor contract. Accordingly, the company expects
a small loss to a break-even first quarter for Yellow Corporation.  The company
remains optimistic about the operating environment for the remainder of the
year.  Productivity improvements and cost reductions at all Yellow Corporation
subsidiaries will drive down expenses by an estimated $50 million in 1998. 
This is in addition to cost reductions in the previous two years totaling
approximately $180 million.

The new National Master Freight Agreement addresses the key elements sought by  
Yellow Freight's employees, including better job security, early retirement and
better pension benefits.  It also provides shippers with five years of labor
stability.  Ratification is expected to be completed by the end of March or
early April.

Statements contained herein that are not purely historical are forward-looking  
statements within the meaning of the Private Securities Litigation Reform Act
of 1995, including statements regarding the company's expectations, hopes,
beliefs and intentions on strategies regarding the future.  It is important to
note that the company's actual future results could differ materially from
those projected in such forward-looking statements because of a number of
factors, including but not limited to inflation, volatility of expenses, the
final results of union contract negotiations, inclement weather, competitor
pricing activity and a downturn in general economic activity.



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 hereunto duly authorized.

                                                       YELLOW CORPORATION

Date:   March 2, 1998                             /s/ H. A. Trucksess, III
                                                      H. A. Trucksess, III
                                           Senior Vice President - Finance/
                                           Chief Financial Officer and Treasurer