Midwest Express Holdings, Inc.

1
Midwest Express Holdings, Inc. Robert W. Baird
Growth Stock Conference May 10, 2002
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Investment Highlights

• Proven market niche premium service
• Historical growth in revenue and earnings
• Attractive growth strategy
• Strategic plan for the future

MEH 1
3

• Overview
• 2001 in Review
• Going Forward

MEH 2
4
Midwest Express Airlines

• Began commercial operations in 1984
• Recognized as best U.S. Airline by leading
  consumer surveys
• Single-class, premium service catering to
  higher-yield business travelers

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5
The Best Care in the Air
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Midwest Express Airlines Service

• 26 destinations nationwide
• 35 McDonnell Douglas DC-9 and MD-80 jet aircraft
  in service

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Skyway Airlines,The Midwest Express Connection

• Initiated in 1989, became wholly owned subsidiary
  in 1994
• Builds feeder traffic and provides nonstop
  service in select markets

MEH 6
8
Skyway Airlines Service

• 30 markets strengthen Milwaukee base
• 10 Fairchild Dornier 328JETs and 15 Beech 1900D
  turboprops in service

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Benefits of Premium Service Strategy

• Customer preference, brand loyalty
• Preferred by 75 of Milwaukee frequent flyers
• Consistently rated 1 U.S. airline by consumers
• More profitable passenger mix
• Higher percentage of business travelers
• More high-end discretionary travelers
• Premium revenue yields
• 30-40 higher than industry

MEH 8
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Ability to Capture Premium Yields

• Midwest Express has historically maintained a
  significant yield premium

0.176
0.123
MEH 9
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Consistent Revenue Growth

• 10-year compounded annual revenue growth of 14

MEH 10
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14 Years of Operating Profits

• 1987-2000 operating income 283 million on sales
  of 3.1 billion
• 1987-2000 operating margin 9.1 1995-2000
  operating margin 10.2
• 2001 operating loss of 12.9 million(1)

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Higher Yields Offset Product Costs
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14

• 2001 In Review

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Factors Impacting 2001

• Slowing economy resulted in decline in business
  travel that began in April and accelerated
  monthly
• Continued high fuel cost environment
• Events of September 11 compounded
  already-difficult operating environment and
  necessitated capacity reduction to align with
  travel demand

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Net Result 2001 vs. 2000

• 5 decrease in revenue
• 1.3 percentage point decrease in load factor
• 8.7 decrease in yield
• Higher insurance and security costs

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Profitability 1998-2001
Full Year
1998 388.9 55.7 35.9 9.2 2.51 45.9
1999 447.6 60.8 38.8 8.7 2.71 52.0
2000 480.0 6.9 5.2 1.1 0.37 22.2
2001 457.2 (12.9) (9.3) (2.0) (0.68) 11.6

• Revenue
• Oper. Income(Loss)
• Net Income(Loss)
• Net Margin
• Earnings (Loss)/Share
• Cash Flow (1)

Note Consolidated financial results of Midwest
Express Holdings. Dollars in millions except
Earnings Per Share. Information as reported, not
pro forma. For operating income, net income, net
margin and earnings/share, 2001 excludes impact
of 8.8 million impairment charge and includes
federal government grant of 16.3 million. (1)
Net Income plus depreciation and amortization
MEH 16
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Operating Statistics 1998-2001

Full Year
1998 19.2 1,624 2,499 65.0 13.9 11.8 0.56
1999 18.5 1,959 2,994 65.4 13.4 11.5 0.61
2000 19.3 1,975 3,163 62.4 13.3 13.0 1.00
2001 17.6 1,974 3,232 61.1 12.1 12.8 0.91

• Revenue Yield
• RPMs (millions)
• ASMs (millions)
• Load Factor
• Revenue per ASM
• Cost per ASM
• Fuel Price

Note Midwest Express Airlines only.
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2001 Cost Reduction Efforts

• Reduced planned capacity 20 following 9/11
• Implemented furlough process to align staffing
  with capacity, including significant reduction in
  contract maintenance staff
• Implemented wage freeze and benefit adjustments
• Placed additional aircraft into charter service
• Initiated redesign of dining services program,
  including transition to roundtrip meal catering
• Lowered travel agent commission cap
• Reduced advertising and discretionary spending
• Completed transition to new aircraft maintenance
  program

MEH 18
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Results of Cost Reduction Efforts

• Lowered cost/asm each quarter (exc. fuel)
• Reduced employee count 18 at Midwest Express and
  2 at Skyway
• Lowered unit costs in most categories despite
  significant capacity reduction
• Will realize substantial unit cost benefits as
  capacity is restored

MEH 19
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• Going Forward

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2002 A Rebuilding Year

• Continued difficult operating environment
• Poor economy, unstable fare environment,
  increased insurance and security costs
• Capacity added as demand warrants
• Down 1-2 in second quarter, up 3-4 in third
  quarter
• Remain flexible depending on recovery of economy
• Skyway to continue moderate growth
• Added two Fairchild Dornier 328JET regional jets
• Launched service to Baltimore, Minneapolis in
  first quarter

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2002 A Rebuilding Year

• Continued emphasis on cost management
• Enhance brand to retain and increase loyalty
• Continue to meet and exceed our customers
  expectations
• Federal loan application under consideration

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First Quarter Profitability
Year-to-Date as of March 31,
2001 2002
Change

• Revenue 118.9 104.0 (12.5)
• Oper. Income (Loss) (10.2) (2.8) 72.9
• Net Income (Loss) (2) (6.6) (2.2) 66.6
• Net Margin (5.5) (2.1) 3.4 pts
• Earnings (Loss)/Share (0.47) (0.16) 66.8
• Cash Flow (1) (1.6) 3.4 nm

Note Consolidated financial results of Midwest
Express Holdings. Dollars in millions except
Earnings Per Share. For operating income, net
income, net margin and earnings per share, 2002
excludes 29.9 million asset impairment charge
and 39.5 million gain associated with Fairchild
arbitration settlement. (1) Net income plus
depreciation and amortization.
MEH 23
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First Quarter Operating Statistics
Year-to-Date as of March 31,
2001 2002
Change

• Revenue Yield 19.0 16.3 (14.5)
• RPMs (millions) 483.1 460.5 (4.7)
• ASMs (millions) 834.4 737.6 (11.6)
• Load Factor 57.9 62.4 4.5 pts
• Revenue per ASM 12.4 11.7 (5.2)
• Cost per ASM 13.3 12.0 (10.1)
• Fuel Price 0.99 0.71 (28.1)

Note Midwest Express Airlines only.
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2003 and Beyond

• Concentrate on existing bases of operation
• Milwaukee
• - Improve market share from existing 36
• - Add frequency, cities
• Omaha
• - 6 market share, dominant carrier in markets
  served
• - Limited future growth opportunities
• Kansas City
• - Continue to build critical mass and brand
  loyalty
• - Further strengthen connection markets

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2003 and Beyond

• Manage fleet growth through aircraft retirement
  and acquisition

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Boeing 717

• 25 firm orders with options for 25 more
• Monthly delivery beginning February 2003
• 88 seats in signature 2-by-2 configuration
• Fuel efficient, lower maintenance costs

MEH 27
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Embraer ERJ

• 20 firm orders with options for 20 more
• Bi-monthly delivery beginning January 2004
• 2-by-1 configuration
• 37-, 44- and 50-seat variations

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• Midwest Express Holdings, Inc.
• www.midwestexpress.com