Palette images are widely used on the World Wide Web (WWW) and in game-cartridge applications. Many images used on the WWW are stored and transmitted after they are compressed losslessly with the standard graphics interchange format (GIF), or portable network graphics (PNG). Well-known 2-D compression schemes, such as JPEG-LS and JPEG-2000, fail to yield better compression than GIF or PNG due to the fact that the pixel values represent indices that point to color values in a look-up table. To improve the compression performance of JPEG-LS and JPEG-2000 techniques, several researchers have proposed various reindexing algorithms. We investigate various compression techniques for color palette images. We propose a new technique comprised of a traveling salesman problem (TSP)-based reindexing scheme, Burrows-Wheeler transformation, and inversion ranks. We show that the proposed technique yields better compression gain on average than all the other 1-D compressors and the reindexing schemes that utilize JPEG-LS or JPEG-2000.