1
================================================================================

                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, DC  20549
                          ___________________________


                                   FORM 10-Q


        [  X  ]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                 SECURITIES EXCHANGE ACT OF 1934

                  FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1996



        [     ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                 SECURITIES EXCHANGE ACT OF 1934



                        COMMISSION FILE NUMBER: 0-9264


                          AMERICAN CLASSIC VOYAGES CO.
             (Exact name of registrant as specified in its charter)




           DELAWARE                                      31-0303330
  (State or other jurisdiction              (I.R.S. Employer identification No.)
of incorporation or organization)  


 TWO NORTH RIVERSIDE PLAZA, CHICAGO, IL                         60606
(Address of principal executive offices)                      (Zip Code)



                                 (312) 258-1890
              (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  [    ]


As of July 31, 1996, there were 13,819,022 shares of Common Stock outstanding.


================================================================================
   2




                          AMERICAN CLASSIC VOYAGES CO.



                                     INDEX



ITEM DESCRIPTION                                                            PAGE



                                                                      
Part I.   Financial Information:

          Item 1.   Condensed Consolidated Financial Statements (Unaudited)
                   
                    Condensed Consolidated Statements of Income for the Three
                    Months and Six Months Ended June 30, 1996 and 1995.....     3
                   
                    Condensed Consolidated Balance Sheets at June 30, 1996
                    and December 31, 1995..................................     4
                   
                    Condensed Consolidated Statements of Cash Flows for the
                    Six Months Ended June 30, 1996 and 1995................     5
                   
                    Notes to Condensed Consolidated Financial Statements...     6
                   
                                                                                      
          Item 2.   Management's Discussion and Analysis of Financial                   
                    Condition and Results of Operations....................     9       

                   
Part II.  Other Information:

          Item 1.   Legal Proceedings......................................    15
          
          Item 6.   Exhibits and Reports on Form 8-K.......................    15
  


                                       2
   3

                          AMERICAN CLASSIC VOYAGES CO.

                  CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                     (In thousands, except per share data)
                                  (Unaudited)






                                                          For the Three Months    For the Six Months
                                                              Ended June 30,         Ended June 30,
                                                          ---------------------   -------------------
                                                             1996        1995       1996       1995
                                                          ----------  ---------   --------   --------
                                                                                 
Revenues...............................................    $ 49,305    $ 45,731   $ 91,250   $ 89,984

Cost of operations (exclusive of depreciation and
  amortization shown below)............................      31,584      36,365     59,973     72,677
                                                           --------    --------   --------   --------
Gross profit...........................................      17,721       9,366     31,277     17,307

Selling, general and administrative expenses...........      11,460      13,069     24,962     26,151
Depreciation and amortization expense..................       3,938       2,489      7,386      4,947
Impairment write-down (Note 4).........................          --          --     38,390         --
One-time pre-opening costs.............................          --       5,900         --      5,900
                                                           --------    --------   --------   --------
Operating income (loss)................................       2,323     (12,092)   (39,461)   (19,691)

Interest income........................................         210         581        451      1,108
Interest expense.......................................       2,204         625      4,329        900
                                                           --------    --------   --------   --------
Income (loss) before income taxes and minority interest         329     (12,136)   (43,339)   (19,483)

Income tax benefit.....................................          52       3,520        449      6,100
Minority interest in loss..............................          --       1,132         --      1,862
                                                           --------    --------   --------   --------
Net income (loss)......................................     $   381    $ (7,484)  $(42,890)  $(11,521)
                                                           ========    ========   ========   ========
Per Share Information:
Average common shares outstanding......................      13,773      13,762     13,771     13,762
                                                           ========    ========   ========   ========
Earnings (loss) per share..............................    $   0.03    $  (0.55)  $  (3.11)  $  (0.84)
                                                           ========    ========   ========   ========
Cash dividends declared per share......................         --     $   0.04         --   $   0.08
                                                           ========    ========   ========   ========


The accompanying notes are an integral part of these consolidated financial
statements.

                                       3
   4

                          AMERICAN CLASSIC VOYAGES CO.

                     CONDENSED CONSOLIDATED BALANCE SHEETS
                   (In thousands except shares and par value)
                                  (Unaudited)




                                                                                June 30,  December 31,
                                                                                  1996        1995    
ASSETS                                                                        ----------  ------------
                                                                                      
Cash and cash equivalents..................................................   $  7,108      $  6,048
Restricted short-term investments..........................................      3,003        10,681
Accounts receivable........................................................      1,562         1,134
Prepaid expenses and other current assets..................................      7,700         6,612
                                                                              ----------  ------------
    Total current assets...................................................     19,373        24,475

Property and equipment, net................................................    181,831       211,959
Other assets...............................................................      6,462         6,320
Goodwill, net..............................................................         --         4,719
                                                                              ----------  ------------
    Total assets...........................................................   $207,666      $247,473
                                                                              ==========  ============

LIABILITIES                                                                                        
Accounts payable...........................................................     10,501        13,073
Other accrued expenses.....................................................     23,240        27,437
Current portion of long-term debt..........................................      4,100         3,746
Unearned passenger revenues................................................     40,310        28,532
                                                                              ----------  ------------
     Total current liabilities.............................................     78,151        72,788

Long-term debt, less current maturities....................................    100,948       103,272
                                                                              ----------  ------------
     Total liabilities.....................................................    179,099       176,060

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY
Preferred stock, $.01 par value (5,000,000 shares authorized, none issued 
  and outstanding).........................................................         --            --
Common stock, $.01 par value (20,000,000 shares authorized; 13,776,122 
  and 13,769,512 shares issued and outstanding, respectively)..............        138           138
Additional paid-in capital.................................................     74,092        74,048
Retained deficit...........................................................    (45,663)       (2,773)
                                                                              ----------  ------------
     Total stockholders' equity............................................     28,567        71,413
                                                                              ----------  ------------
                                                                              $207,666      $247,473
                                                                              ==========  ============


The accompanying notes are an integral part of these consolidated financial
statements.

                                       4
   5

                          AMERICAN CLASSIC VOYAGES CO.

                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (In thousands)
                                  (Unaudited)





                                                                 For the Six Months
                                                                    Ended June 30,
                                                              -------------------------
                                                                  1996        1995
                                                              -----------  ------------
                                                                     
OPERATING ACTIVITIES:
  Net loss...................................................  $ (42,890)  $(11,521)
    Depreciation and amortization............................      7,386      4,947
    Minority interest........................................         --     (1,862)
    Impairment write-down (Note 4)...........................     38,390         --
    Changes in working capital and other:                                          
       Working capital changes and other.....................     (5,667)    (8,409)
       Unearned passenger revenues...........................     11,778      7,199
                                                              -----------  ------------
    Net cash provided by (used in) operating activities......      8,997     (9,646)
                                                              -----------  ------------
                                                             
INVESTING ACTIVITIES:                                        
  Decrease in restricted short-term investments..............      7,678         57
  Capital expenditures.......................................    (13,324)   (20,546)
                                                              -----------  ------------
    Net cash used in investing activities....................     (5,646)   (20,489)
                                                              -----------  ------------
                                                             
FINANCING ACTIVITIES:                                        
  Proceeds from borrowings...................................      6,903     25,000
  Repayment of borrowings....................................     (8,873)        --
  Issuance of common stock...................................         44         22
  Dividends..................................................         --     (1,101)
  Deferred financing fees....................................       (365)      (716)
                                                              -----------  ------------
    Net cash (used in) provided by financing activities......     (2,291)    23,205
                                                              -----------  ------------
                                                             
Increase (decrease) in cash and cash equivalents.............      1,060     (6,930)
Cash and cash equivalents, beginning of period...............      6,048     12,224
                                                              -----------  ------------
Cash and cash equivalents, end of period.....................  $   7,108   $  5,294
                                                              ===========  ============
                                                             
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:           
  Cash paid (refunded) during the period for:                
    Interest (net of capitalized interest)...................  $   3,838   $    490
    Income taxes.............................................  $     404   $   (252)



The accompanying notes are an integral part of these consolidated financial
statements.

                                       5
   6
                          AMERICAN CLASSIC VOYAGES CO.

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                 JUNE 30, 1996
                                  (Unaudited)

1.   BASIS OF PRESENTATION:

These accompanying unaudited Condensed Consolidated Financial Statements
("Financial Statements") have been prepared pursuant to Securities and
Exchange Commission ("SEC") rules and regulations and should be read in
conjunction with the Consolidated Financial Statements and Notes thereto
included on Form 10-K for the year ended December 31, 1995 (the "Annual
Report") for American Classic Voyages Co. ("AMCV") and its subsidiaries. These
Financial Statements include the accounts of AMCV and its wholly owned
subsidiaries, The Delta Queen Steamboat Co. ("DQSC") and Great Hawaiian Cruise
Line, Inc. ("GHCL") (collectively with such subsidiaries, the "Company"). The
following notes to the Financial Statements highlight significant changes to
the notes included in the Annual Report and such interim disclosures as
required by the SEC. These Financial Statements reflect, in the opinion of
management, all adjustments necessary for a fair presentation of the interim
financial statements. All such adjustments are of a normal and recurring
nature. Certain previously reported amounts have been reclassified to conform
to the 1996 presentation.

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates.

2. PROPERTY AND EQUIPMENT:

Property and equipment includes the estimated salvage value for the
Constitution of $2.5 million. The Constitution will not be returned to service
and will remain in wet berth at a shipyard in Portland, Oregon while the
Company explores various other options for the vessel (see Note 4 for further
information).

3. DEBT:




Long-term debt consisted of (in thousands):
                                                              June 30,  December 31,
                                                                1996       1995
                                                              --------  ------------
                                                                     
U.S. Government Guaranteed Ship            
  Financing Note, American Queen Series,   
  floating rate notes due semi-annually    
  beginning February 24, 1996 through      
  August 24, 2005.........................................     $23,024     $24,236
                                           
U.S. Government Guaranteed Ship            
  Financing Bond, American Queen Series,   
  7.68% fixed rate, sinking fund bonds due 
  semi-annually beginning February 24,     
  2006 through June 2, 2020...............................      36,353      36,353        
                                           
U.S. Government Guaranteed Ship           
  Financing Note, Independence Series A,   
  floating rate notes due semi-annually    
  beginning June 7, 1996 through 
  December 7, 2005........................................      12,553      13,214      
                                           
U.S. Government Guaranteed Ship            
  Financing Bond, Independence Series A,   
  6.84% fixed rate sinking fund bonds due  
  semi-annually beginning June 7, 2006     
  through December 7, 2015................................      13,215      13,215      
                                           
U.S. Government Guaranteed Ship           
  Financing Note, Independence Series B,   
  floating rate notes due semi-annually    
  beginning December 7, 1996 through       
  December 7, 2005........................................       3,363          --          

U.S. Government Guaranteed Ship            
  Financing Bond, Independence Series B,   
  7.46% fixed rate sinking fund bonds due  
  semi-annually beginning June 7, 2006     
  through December 7, 2015................................       3,540          --                        
                                           
Revolving credit facility.................................      13,000       20,000                    
                                                              --------     --------
                                                               105,048      107,018                  
Less current portion......................................       4,100        3,746 
                                                              --------     --------
                                                              $100,948     $103,272 
                                                              ========     ========


                                      6
   7

On March 28, 1996, a subsidiary of GHCL issued $6.9 million of debt guaranteed
by the U.S. Government through the U.S. Department of Transportation, Maritime
Administration ("MARAD"). This debt is the second series ("Series B") of the
$26.4 million issue that was completed on December 7, 1995 and therefore
contains the same covenants and security as the original issue which was
guaranteed by GHCL and secured by the first mortgage of the Independence. The
Series B debt consists of $3.4 million of notes due December 7, 2005 with a
floating interest rate equal to London Interbank Offered Rate ("LIBOR") plus
 .27% and $3.5 million of 7.46% fixed rate bonds due December 7, 2015. Interest
payments on the notes and bonds, as well as principal payments on the notes,
are payable semi-annually beginning December 7, 1996. Principal payments on the
bonds are payable semi-annually beginning June 7, 2006. In addition, the Series
B debt required the subsidiary to increase the six-month debt service deposit
to $2.2 million. This deposit will be released when either GHCL or its
subsidiary meets certain cash flow and debt-to-equity ratios.

The Company used a portion of the proceeds from the Series B financing to fund
amounts owed to the Newport News Shipbuilding and Dry Dock Company (the
"Shipyard") as part of the litigation settlement as further discussed in Note
6. The remaining proceeds were used, in part, to pay down a portion of amounts
outstanding under its revolving credit facility.

On April 22, 1996, the Company modified the total borrowing availability under
its amended and restated credit agreement with a group of financial
institutions with The Chase Manhattan Bank (formerly Chemical Bank), as agent
(the "Credit Agreement"). The Credit Agreement provides a revolving credit
facility, subject to certain covenants, of up to $25.0 million with a final
maturity on March 31, 1999. Borrowings bear interest, at the option of the
Company, equal to either (i) the greater of The Chase Manhattan Bank's prime
rate or certain alternative base rates plus a margin ranging from 0% to 1.25%,
or (ii) LIBOR plus a margin ranging from 1.0% to 2.25%. The Company is also
required to pay a commitment fee on the unused portion of the facility at a
rate ranging from 0.375% to 0.5% per annum. The Credit Agreement is guaranteed
by AMCV and secured by substantially all the assets of DQSC, excluding the
American Queen. The Credit Agreement contains various limitations, restrictions
and financial covenants which, among other things, requires maintenance of
certain financial ratios, restricts additional indebtedness, limits
intercompany advances to $20.0 million and limits the payment of dividends from
DQSC to AMCV to $2.0 million per annum.

The Company has complied with all covenants as of June 30, 1996.

4. IMPAIRMENT WRITE-DOWN:

After evaluating the scope and cost of the Constitution reconstruction project
as well as considering various alternatives, the Company announced on April 29,
1996 its decision not to renovate or return the Constitution to service. The
Constitution was removed from service on June 27, 1995 and is currently in wet  
berth at a shipyard in Portland, Oregon. In the first quarter of 1996, in 
connection with the foregoing decision, the Company recognized an impairment
write-down of $38.4 million, comprised of (a) $36.1 million directly related to
the write-down of the vessel and its allocated goodwill to an estimated salvage
value of $2.5 million, and (b) $2.3 million which represented the remaining
goodwill balance from the GHCL acquisition. The Company reserved for the
estimated costs to be incurred on behalf of the Constitution until its eventual
disposition. These costs include insurance, wet berthing fees and general
maintenance of the vessel.  As of June 30, 1996, after recently performed
maintenance work to ensure the integrity and watertightness of the vessel, the
balance of this reserve was $4.0 million.

The impairment write-down was recognized in accordance with the Statement of
Financial Accounting Standards ("SFAS") No. 121, "Accounting for the Impairment
of Long-Lived Assets and for Long-Lived Assets to be Disposed of", which the
Company adopted effective January 1, 1996. SFAS No. 121 establishes accounting
standards for recognizing the impairment of long-lived assets, identifiable
intangibles and goodwill, whether to be disposed of or to be held and used. In
general, SFAS No. 121 requires recognition of an impairment loss when the sum
of undiscounted expected future cash flows is less than the carrying amount of
such assets.

                                      7
   8

5. STOCK OPTIONS:

Activity under the Company's stock option plans from December 31, 1995 through
June 30, 1996 was:




                                  Executive Stock
                                    Option Plan          1992 Plan            Price Per Share
                                  --------------  ------------------------    ---------------
                                      Shares         Shares      Shares
                                     Subject to    Subject to  Subject to
                                      Options       Options       SARs
                                  --------------  -----------  -----------                     
                                                                         
Balance at December 31, 1995          323,971     1,179,410     280,000       $3.25 - $20.42
  Options granted                          --       106,500          --        9.50 -  11.00
  Options canceled                         --      (335,501)    (55,000)       9.50 -  20.42
                                  --------------   ----------  -----------    
Balance at June 30, 1996              323,971       950,409     225,000       $3.25 - $20.42
                                  ==============   ==========  ===========    


With respect to SFAS 123, "Accounting for Stock-based Compensation", which
became effective January 1, 1996, the Company will continue its current
accounting for employee stock-based compensation plans in accordance with
Accounting Principles Board Opinion No. 25, as permitted under SFAS 123. In
addition, the Company will disclose the pro forma effect of the fair value
accounting method in the notes to its annual consolidated financial statements,
as required.

6. LITIGATION SETTLEMENT:

As discussed in Note 10 to the Consolidated Financial Statements included in
the Annual Report, in February 1996, the Company settled its dispute with the
Shipyard which arose during the renovation of the Independence. In March 1996,
the Company, in accordance with the settlement agreement, paid an additional
$8.7 million comprised of (a) the remaining escrow balance of $6.4 million, and
(b) $2.3 million upon the closing of the Series B debt as previously discussed
in Note 3.

                                       8
   9

                          AMERICAN CLASSIC VOYAGES CO.

                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                           OF FINANCIAL CONDITION AND
                             RESULTS OF OPERATIONS



GENERAL

American Classic Voyages Co. ("AMCV," or along with its subsidiaries, the
"Company"), is a holding company which owns and controls The Delta Queen
Steamboat Co. ("DQSC") and Great Hawaiian Cruise Line, Inc. ("GHCL"). The
following discusses the Company's consolidated results of operations and
financial condition for the second quarter and six month period ended June 30,
1996 versus the comparable periods ended June 30, 1995. This section should be
read in conjunction with the Management's Discussion and Analysis of Financial
Condition and Results of Operations included in the Company's Annual Report
for the year ended December 31, 1995.

The Company, through its various subsidiaries, operates two cruise lines:
"Delta Queen", which owns and operates the American Queen, Mississippi Queen
and Delta Queen steamboats, and "American Hawaii", which owns and operates the
Independence steamship. American Hawaii also owns the Constitution steamship
which was removed from service on June 27, 1995. The Constitution will not be
returned to service and will remain in wet berth at a shipyard in Portland,
Oregon while the Company explores various other options for the vessel. The
Company also owns and operates the Maison Dupuy Hotel located in New Orleans.

The Company's operations are seasonal. Historically, there is greater
passenger interest in the spring and fall months of the year at Delta Queen.
Furthermore, the vessels are typically out of service in January of each year,
undergoing a lay-up for routine repair and maintenance. American Hawaii
experiences greater passenger interest in the spring and summer months of the
year. Current interim results of operations include an impairment write-down
as discussed in Note 4 of the Condensed Consolidated Financial Statements. In
addition, the Delta Queen will be taken out of service for one month beginning
in mid-December 1996 to undergo its scheduled U.S. Coast Guard hull inspection
while this same procedure for the Independence will occur during its
month-long drydocking beginning mid-May 1997. The American Queen, launched in
mid-1995, will undergo its first annual lay-up during the month of January
1997. As a result of the factors mentioned above, interim results of
operations are not necessarily indicative of results for a full year.


RESULTS OF OPERATIONS

The following tables set forth various financial results and operating
statistics for the three months and six months ended June 30, 1996 and 1995
(in thousands):

                                 FINANCIAL DATA




                            For the Three Months  For the Six Months
                               Ended June 30,        Ended June 30,
                            -------------------   -------------------
                              1996      1995        1996       1995
                            --------  ---------   ---------  --------
                                                 
Revenues..................  $49,305   $ 45,731    $ 91,250   $ 89,984
                            ========  =========   =========  ========
Operating income (loss)...  $ 2,323   $(12,092)   $(39,461)  $(19,691)
                            ========  =========   =========  ========
Net income (loss).........  $   381   $ (7,484)   $(42,890)  $(11,521)
                            ========  =========   =========  ========


                                      9
   10

                              OPERATING STATISTICS




                                             For the Three Months    For the Six Months
                                                Ended June 30,         Ended June 30,
                                             -------------------     ------------------
                                               1996       1995         1996      1995
                                             ---------  --------     --------  --------
                                                                   
Fare revenue per passenger night..........  $      220  $    199    $   213    $   193
Total revenue per passenger night.........  $      288  $    275    $   284    $   276
                                                         
Weighted average operating days (1):                     
   DELTA QUEEN............................          91        54        166         91
   AMERICAN HAWAII........................          91        89        182        179
                                                         
Vessels capacity per day (berths) (2):                   
   DELTA QUEEN............................       1,024     1,024      1,024      1,024
   AMERICAN HAWAII........................         817     1,590        817      1,590
                                                         
Capacity passenger nights (3).............     167,531   196,790    318,880    377,238
                                                         
Passenger nights (4)......................     164,645   159,162    308,317    311,215
Physical occupancy percentage (berths) (5)         98%       81%        97%        82%


___________________

(1)  Weighted average operating days for each cruise line is determined by
     dividing capacity passenger nights for each cruise line by the cruise
     line's total vessel capacity per day.

(2)  Vessel capacity per day represents the number of passengers each cruise
     line can carry assuming double occupancy for cabins which accommodate two
     or more passengers. Some cabins on the Independence and the American
     Queen can accommodate three or four passengers.

(3)  Capacity passenger nights is determined by multiplying, for the
     respective period, the actual operating days of each vessel by each
     vessel's capacity per day.

(4)  A passenger night represents one passenger spending one night on a
     vessel; for example, one passenger taking a three-night cruise would
     generate three passenger nights.

(5)  Physical occupancy percentage is passenger nights divided by capacity
     passenger nights.

                                      10
   11

QUARTER ENDED JUNE 30, 1996 COMPARED TO QUARTER ENDED JUNE 30, 1995

Consolidated second quarter 1996 revenues of $49.3 million represented a $3.6
million increase from second quarter 1995 revenues of $45.7 million. American
Hawaii revenues decreased $4.2 million, reflecting a 47% decrease in capacity
as a result of the Constitution's removal from service on June 27, 1995, offset
by an increase of 6% in Independence fare revenue per passenger night ("fare
per diems"). Due to high water levels on the Ohio River in April and May
of 1996, certain cruise itineraries for the American Queen were changed. In an
effort to maintain customer goodwill, refunds were issued to passengers
electing to cancel their cruise, while vouchers for future complimentary
cruises were issued to those remaining on the affected cruises. The net effect
on revenue was not material and the Company believes a portion of the forgone
revenue will be recovered through business interruption insurance. Despite the  
high water situation, Delta Queen's revenues increased $7.8 million reflecting
the operation of the American Queen for the entire period in 1996 (the
American Queen began her first cruise in the prior year on June 27, 1995). 
Delta Queen's fare per diems decreased by 11% from the prior year period as a
result of management's strategy of discounting fares in the first half of 1996
in an effort to maintain historically high occupancy levels and to help shift
the booking cycle to its optimal schedule of six to nine months in advance. The
consolidated fare per diems for the second quarter of 1996 increased 11% to
$220 as the increase in American Hawaii's fare per diems more than offset the
decrease in Delta Queen's fare per diems. Consolidated total revenue per
passenger night ("total revenue per diems") increased only 5% to $288 for the
second quarter of 1996 due to a reduction in the percentage of passengers at
both cruise lines electing to purchase air travel through the Company.

Consolidated cost of operations decreased to $31.6 million for the second
quarter of 1996 from $36.4 million for the same period in 1995. American Hawaii
operating costs decreased $10.5 million primarily due to (a) the Constitution's
removal from service at the end of the second quarter of 1995, and (b)
realization of operating cost savings on the Independence as a result of cost
cutting efforts undertaken since the second half of 1995. Delta Queen's
operating costs increased $5.7 million which primarily reflected the addition
of the American Queen.

Consolidated selling, general and administrative expenses ("SG&A")
decreased to $11.5 million for the second quarter of 1996 from $13.1 million
for the same quarter in 1995. American Hawaii's SG&A decreased $3.0 million
primarily due to reduced staff levels and lower marketing expenses prompted by
the Constitution's  removal from service. Delta Queen's additional capacity
resulted in increased  marketing, corporate overhead and selling costs.  In
addition, marketing costs at Delta Queen increased due to the efforts to
lengthen the booking cycle.

Consolidated depreciation and amortization expense increased to $3.9 million
for the second quarter of 1996 from $2.5 million for the same period of 1995
primarily due to the addition of the American Queen.  American Hawaii's
depreciation remained unchanged as the increased depreciation on the
Independence was offset by the suspension of depreciation on the Constitution
upon its removal from service in the prior year. The increase in operating
income over the prior year was due to the factors mentioned above and the
inclusion of $5.9 million in one-time pre-opening costs related to the American
Queen for the quarter ended June 30, 1995.

Interest expense increased $1.6 million due to a greater outstanding debt
balance in 1996 and because the Company capitalized interest in 1995 related to
the American Queen construction. The Company's effective tax rate for the
second quarter of 1996 represented a benefit for certain state taxes whereas in
the same period for 1995, the effective tax rate also included a Federal tax
benefit. For the first half of 1996, the Company recognized a valuation
allowance for the full amount of the Federal tax benefit. As the minority
interest in GHCL was redeemed in December 1995, net income for the quarter
ended June 30, 1996 reflects 100% ownership of GHCL by the Company.


                                      11
   12

SIX MONTHS ENDED JUNE 30, 1996 VERSUS SIX MONTHS ENDED JUNE 30, 1995

Consolidated first half 1996 revenues of $91.3 million represented a $1.3
million increase from first half 1995 revenues of $90.0 million. American
Hawaii's revenues decreased $12.2 million, or 20%. This decrease was mainly due
to a 48% decrease in capacity as a result of the Constitution's removal from
service on June 27, 1995, partially offset by improvements on the Independence
in fare per diems and occupancy, which increased by 13% and 18%, respectively,
compared to 1995. Delta Queen's revenues increased $13.5 million, or 44%,
reflecting an 80% increase in passenger nights for the period, offset by a 14%
decrease in fare per diems. The decrease in fare per diems as compared to 1995
is attributable to management's strategy of discounting fares in the first half
of 1996 in an effort to maintain historically high occupancy levels and to help
shift the booking cycle to its optimal schedule of six to nine months in
advance. The consolidated fare per diems for the first half of 1996 increased
10% to $213 as the increase in American Hawaii's fare per diems more than
offset the decrease in Delta Queen's fare per diems. Consolidated total revenue
per diems increased by only 3% to $284 due to a reduction in the percentage of
passengers at both cruise lines electing to purchase air travel through the
Company.

Consolidated cost of operations decreased to $60.0 million for the first half
of 1996 from $72.7 million for the first half of 1995. American Hawaii's
operating costs decreased $22.9 million primarily due to the Constitution's
removal from service and realization of operating cost savings on the
Independence as a result of cost cutting efforts undertaken since the second
half of 1995. Delta Queen's operating costs increased $10.2 million, or 56%,
primarily due to the addition of the American Queen.

Consolidated SG&A decreased to $25.0 million for the first half of 1996 from
$26.1 million for the same period in 1995. Delta Queen's additional capacity
resulted in increased marketing and corporate overhead expenditures but was     
offset by the reduction in American Hawaii's marketing and corporate overhead
expenditures as only one ship was in operation. The $2.4 million increase in
depreciation expense was due to the addition of the American Queen while
American Hawaii's remained unchanged as the increased depreciation on the
Independence was offset by the suspension of depreciation on the Constitution
upon its removal from service in the prior year.

After evaluating the scope and cost of the Constitution reconstruction project
as well as considering various alternatives, the Company announced on April 29,
1996 its decision not to renovate or return the Constitution to service. In
connection with this decision, the Company recognized an impairment write-down
of $38.4 million in the first quarter of 1996. Excluding this write-down, the
consolidated operating loss for the first half of 1996 was $1.1 million as
compared to an operating loss, before one-time pre-opening costs of $5.9
million, of $13.8 million in 1995.

The $38.4 million impairment write-down was comprised of (a) $36.1 million
directly related to the write-down of the vessel and its allocated goodwill to
an estimated salvage value of $2.5 million, and (b) $2.3 million which
represented the remaining goodwill balance from the American Hawaii
acquisition. The Company has reserved for the estimated costs to be incurred on
behalf of the Constitution until its eventual disposition. These costs include
insurance, wet berthing fees and general maintenance of the vessel.  As of
June 30, 1996, after recently performed maintenance work to ensure the
integrity and watertightness of the vessel, the balance of this reserve was
$4.0 million.  The impairment write-down was recognized in accordance with the 
Statement of Financial Accounting Standards ("SFAS") No. 121, "Accounting for 
the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed 
of", which the Company adopted effective January 1, 1996.

Interest expense increased $3.4 million due to a greater outstanding debt
balance in 1996 and capitalization of interest costs in 1995 related to the
American Queen construction. The Company's effective tax rate for the first
half of 1996 represented a benefit for certain state taxes. A valuation
allowance was recognized for the full amount of the Federal tax benefit
recorded in the first half of 1996 due to the possibility that the deferred tax
asset created may not be realized in the future. As the minority interest in
GHCL was redeemed in December 1995, the net loss for the first half of 1996
reflects 100% ownership of GHCL by the Company.


                                      12
   13

LIQUIDITY, CAPITAL RESOURCES AND FINANCIAL CONDITION

Operating Activities

For the six months ended June 30, 1996, cash used in operations before changes
in unearned passenger revenues ("Operating Cash Flow") was $2.8 million
compared to $16.8 million in the prior year. Operating Cash Flow reflected the
improved operating performance of American Hawaii in the first half of 1996,
as discussed previously under Results of Operations. Unearned passenger
revenues, representing passenger cruise deposits, increased $11.8 million in
the first half of 1996 reflecting the seasonal increase in advance reservation
levels typically experienced at Delta Queen.

Capital Expenditures

Capital expenditures of $13.3 million in the first half of 1996 included $10.5
million related to the Independence, of which $8.7 million represented amounts
paid to Newport News Shipbuilding and Dry Dock Company (the "Shipyard") in
March 1996 as part of the litigation settlement. Other significant capital
expenditures included $2.6 million for the Delta Queen and Mississippi Queen
lay-ups, including completion of the Mississippi Queen cosmetic renovation.

Debt

On March 28, 1996, a subsidiary of GHCL issued $6.9 million of debt guaranteed
by the U.S. Government through the U.S. Department of Transportation, Maritime
Administration ("MARAD"). This debt is the second series ("Series B") of the
$26.4 million issue that was completed on December 7, 1995 and therefore
contains the same covenants and security as the original issue which was
guaranteed by GHCL and secured by the first mortgage of the Independence. The
Series B debt consists of $3.4 million of notes due December 7, 2005 with a
floating interest rate equal to London Interbank Offered Rate ("LIBOR") plus
 .27% and $3.5 million of 7.46% fixed rate bonds due December 7, 2015. Interest
payments on the notes and bonds, as well as principal payments on the notes are
payable semi-annually beginning December 7, 1996. Principal payments on the
bonds are payable semi-annually beginning June 7, 2006. In addition, the Series
B debt required the subsidiary to increase the six-month debt service deposit
to $2.2 million. This deposit will be released when either GHCL or its
subsidiary meets certain cash flow and debt-to-equity ratios. The Company used
a portion of the proceeds from the Series B financing to fund amounts owed to
the Shipyard as part of the litigation settlement as discussed above. The
remaining proceeds were used, in part, to pay down amounts outstanding under
its revolving credit facility.

On April 22, 1996, the Company modified the total borrowing availability under
its amended and restated credit agreement with a group of financial
institutions with The Chase Manhattan Bank (formerly Chemical Bank), as agent
(the "Credit Agreement"). The Credit Agreement provides a revolving credit
facility, subject to certain covenants, of up to $25.0 million with a final
maturity on March 31, 1999. Borrowings bear interest, at the option of the
Company, equal to either (i) the greater of The Chase Manhattan Bank's prime
rate or certain alternative base rates plus a margin ranging from 0% to 1.25%,
or (ii) LIBOR plus a margin ranging from 1.0% to 2.25%. The Company is also
required to pay a commitment fee on the unused portion of the facility at a
rate ranging from 0.375% to 0.5% per annum. The Credit Agreement is guaranteed
by AMCV and secured by substantially all the assets of DQSC, excluding the
American Queen. The Credit Agreement contains various limitations, restrictions
and financial covenants which, among other things, requires maintenance of
certain financial ratios, restricts additional indebtedness, limits
intercompany advances to $20.0 million and limits the payment of dividends from
DQSC to AMCV to $2.0 million per annum.

The Company has complied with all covenants as of June 30, 1996.

The Company believes it will have adequate access to capital resources, both
internally and externally, to meet its short-term and long-term capital
commitments. Such resources may include cash on hand, the ability to secure
additional financing through the capital markets or the sale of certain
non-strategic assets. The Company has no immediate plans to increase capacity
at either of its two cruise lines. However, the Company continually evaluates
opportunities to increase capacity, particularly with regard to the American
Hawaii business. If it would elect to increase capacity, the Company may seek
to secure additional financing. Notwithstanding, there can be no assurances
that the Company will choose to increase capacity or, if it elects to do so,
that it will obtain additional financing.


                                      13

   14

Dividends

In the second half of 1995, the Company's board of directors elected not to
declare a dividend and determined that any future dividend declarations will be
based on the Company's operating performance and its planned capital needs.

Other

In March 1996, as part of the litigation settlement, the remaining balance of
$6.4 million maintained in an escrow account was released to the Shipyard. In
addition, during the first half of 1996, $1.8 million was released to the
Company from the escrow account maintained for remaining American Queen
construction costs.

The Federal Maritime Commission ("FMC") regulates passenger vessels with 50 or
more berths departing from U.S. ports and requires that such operators post
security with the FMC to be used in the event the operator fails to provide
cruise services or otherwise satisfy certain financial standards. The Company
has been approved as a self-insurer by the FMC, and therefore is not required
to post security for passenger cruise deposits. In light of a recent bankruptcy
of a cruise operator, the FMC has reviewed its financial safeguards for
passenger cruise deposits, and in June 1996, the FMC issued its proposed
regulations to increase the financial responsibility requirements on cruise
operators. If implemented, these proposed regulations would, among other
things, require operators qualifying as a self-insurer, such as the Company, to
satisfy a working capital test, in addition to the existing net worth test, and
to provide third-party coverage for 25% of its unearned passenger revenue in
the form of a surety bond or similar instrument. The FMC has asked that
operators submit comments to the proposals.  The Company will file its 
objections to the proposals as it believes that the FMC's current standards 
provide passengers with adequate protection in the event of an operator's 
non-performance, and that further requirements would impose an undue burden 
on operators. If the FMC implements the proposed changes, they will be phased 
in over time. The Company cannot at this time predict if the proposed
changes will be approved as currently constituted, or at all. If they are
implemented, it will require that the Company establish a bond to cover a
portion of its passenger deposits and payments at some future date.

Factors Concerning Forward-Looking Statements

Certain statements in "Management's Discussion and Analysis of Financial
Condition and Results of Operations" constitute "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995 (the
Reform Act). Such forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance
or achievements of the Company to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. Such factors include, among others, the following:
general economic and business conditions which may impact passenger yields and
occupancy; weather patterns affecting either the inland waterways in the
Continental U.S. or the Hawaiian Islands; unscheduled repairs and drydocking of
the Company's vessels; the impact of changes in laws and implementation of 
government regulations, such as those proposed by the FMC; the recognition of 
a valuation allowance for Federal taxes; the increase in capacity at American 
Hawaii; and the ability to obtain additional financing or sell non-strategic 
assets.


                                      14
   15

                          AMERICAN CLASSIC VOYAGES CO.


                          PART II - OTHER INFORMATION



ITEM 1. Legal Proceedings
        
        As discussed in Note 10 to the Consolidated Financial Statements
        included in the Annual Report, in February 1996, the Company settled
        its dispute with the Shipyard which arose during the renovation of the
        Independence. In March 1996, the Company, in accordance with the
        settlement agreement, paid an additional $8.7 million comprised of (a)
        the remaining escrow balance of $6.4 million, and (b) $2.3 million
        upon the closing of the Series B debt as previously discussed in Note
        3 of the Condensed Consolidated Financial Statements.
        
        There are no other material legal proceedings, to which the Company
        is a party or of which any of its property is the subject, other than
        ordinary routine litigation and claims incidental to the business.
        The Company believes it maintains adequate insurance coverage and
        reserves for such claims.


ITEM 6. Exhibits and Reports on Form 8-K
        
        a)  Exhibits:
        
            4.(ii)(a)(26) Acknowledgment of Trust Indenture dated as of 
                          April 22, 1996 entered into by and among Great River
                          Cruise Line, Inc. and Chemical Bank as Agent for the
                          Lenders.
        
            4.(ii)(a)(27) Acknowledgment of Trust Indenture dated as of 
                          April 22, 1996 entered into by and among Great Ocean
                          Cruise Line, Inc. and Chemical Bank as Agent for the
                          Lenders.
        
            4.(ii)(d)(19) Amendment No. 1 to Title XI Reserve Fund and 
                          Financial Agreement between Great AQ Steamboat Co.
                          and the United States of America effective as of
                          January 1, 1996.
        
            27.           Financial data schedule.
        
        
        
        b)  Reports on Form 8-K:
        
            Form 8-K dated April 29, 1996 announcing the decision not to
            renovate or return to service American Hawaii Cruises' steamship,
            the Constitution.

                                      15
   16

                                   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.




                                           AMERICAN CLASSIC VOYAGES CO.


                                      By:  /s/ Philip C. Calian
                                           ------------------------
                                           Philip C. Calian
                                           Chief Executive Officer



                                      By:  /s/ Kathryn F. Gray
                                           ------------------------
                                           Kathryn F. Gray
                                           Controller and Treasurer




Dated:  August 13, 1996
      -------------------



                                      16