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)      June 15, 1994

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

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

  10777 Barkley, P. O. Box 7563,       Overland Park, Kansas      66207
(Address of principal executive offices)                       (Zip Code)

Registrant's telephone number, including area code         (913) 967-4300

                                  No Changes.
         (Former name or former address, if changed since last report.)
Item 5.  Other Events

  On June 15, 1994, Yellow Corporation (the company) announced that it expects
to report a loss of between $23 and $25 million, or between $.80 and $.90 per
share, for the second quarter of 1994.  This loss is entirely due to the 23 day
strike during April by the International Brotherhood of Teamsters (IBT) against
Yellow Freight System, Inc., the company's largest motor carrier subsidiary.
Comparatively, in the second quarter of 1993, the company lost $1.9 million, or
$.07 per share, after an $11.2 million after-tax, or $.40 per share,
restructuring charge.

  Yellow Freight System is experiencing better-than-anticipated return to
pre-strike business levels.  The return of business is running about 90 to 95
percent of pre-strike levels, a more rapid return of business than originally
anticipated.   Yellow Freight System showed a profit for the month of May and
is winning back business with an intensive marketing effort aimed at restoring
customer confidence.  They are signing business without additional discounting
and are working aggressively to make sure that this trend continues through
1994 and 1995.

  With pricing stability and a healthy economy, the company's primary
subsidiary stands to benefit later this year from the flexibility gained in the
industry's new four-year agreement with the IBT.  Final second quarter results
will be available on July 21, 1994.


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:     June 21, 1994                          /s/ Phillip A. Spangler
                                               Phillip A. Spangler
                                               Vice President and Treasurer