Midwest Express Holdings, Inc.

Robert W. Baird Growth Stock ConferenceMay 10, 2002

Investment Highlights

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

MEH 1

• Overview

• 2001 in Review

• Going Forward

MEH 2

Midwest Express Airlines

MEH 3

• 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

‘The Best Care in the Air’

MEH 4

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

MEH 5

Skyway Airlines,The Midwest Express Connection

MEH 6

• Initiated in 1989, became wholly owned subsidiary in 1994

• Builds feeder traffic and provides nonstop service in select markets

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

MEH 7

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

Revenue Yield

$0.00$0.05$0.10$0.15$0.20$0.25

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

(cen

ts/r

pm)

MEA U.S. Majors

Ability to Capture Premium Yields• Midwest Express has historically maintained a significant yield premium

MEH 9

$0.176$0.123

Consistent Revenue Growth• 10-year compounded annual revenue growth of 14%

Source: Midwest Express Holdings, Inc. MEH 10

$0

$100

$200

$300

$400

$500

(in

mill

ion

s)

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Revenue

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)

(1) Excluding asset impairment charge of $8.8 million, including federal government grant of $16.3 millionSource: Midwest Express Airlines/The Airline MonitorMEA information as reported, not pro forma. MEH 11

-$15

$0

$15

$30

$45

$60

(in m

illio

ns)

1987 1989 1991 1993 1995 1997 1999 2001

Operating Income

Higher Yields Offset Product Costs

(1) 2001 excludes asset impairment charge of $8.8 million and includes federal government grant of $16.3 millionSource: Midwest Express Airlines/The Airline MonitorMEA information as reported, not pro forma.

MEH 12

-1.5

-0.5

0.5

1.5

2.5

(cen

ts)

1993 1994 1995 1996 1997 1998 1999 2000 2001

Operating Profit per ASM(1)

MEA U.S. Majors

2001 In Review

MEH 13

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

MEH 14

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

MEH 15

Profitability: 1998-2001

Revenue

Oper. Income(Loss)

Net Income(Loss)

Net Margin

Earnings (Loss)/Share

Cash Flow (1)

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

Note: Consolidated financial results of Midwest Express Holdings. Dollars in millions except Earnings Per Share. Information as reported, not pro forma.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 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.grant of $16.3 million.(1) Net Income plus depreciation and amortization(1) Net Income plus depreciation and amortization MEH 16

Full Year2001

$457.2

($12.9)

($9.3)

(2.0%)

($0.68)

$11.6

Operating Statistics: 1998-2001

Revenue Yield

RPMs (millions)

ASMs (millions)

Load Factor

Revenue per ASM

Cost per ASM

Fuel Price

Note: Midwest Express Airlines only.Note: Midwest Express Airlines only.

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

MEH 17

Full Year2001

17.6¢

1,974

3,232

61.1%

12.1¢

12.8¢

$0.91

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

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 restoredMEH 19

Going Forward

MEH 20

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

MEH 21

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

MEH 22

First Quarter Profitability

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 nmNote: Consolidated financial results of Midwest Express Holdings. Dollars in millions except Earnings Per Share.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 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.with Fairchild arbitration settlement.(1)(1) Net income plus depreciation and amortization.Net income plus depreciation and amortization. MEH 23

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

First Quarter Operating Statistics

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.Note: Midwest Express Airlines only. MEH 24

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

2003 and Beyond

• Concentrate on existing bases of operationMilwaukee

- 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

MEH 25

2003 and Beyond

• Manage fleet growth through aircraft retirement and acquisition

MEH 26

Boeing 717

MEH 27

• 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

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

MEH 28

Midwest Express Holdings, Inc.

www.midwestexpress.com