MEH 1

Midwest Express Holdings, Inc.

Raymond James & Associates

January 23, 2001

MEH 2

Investment Highlights

• Proven Premium Service Niche Market- High cost, high yield product and service- Strong business communities/underserved markets

• Historical Growth in Revenue and Earnings

• Attractive Growth Strategy

• Plan to Improve on Poor 2000 Results

MEH 3

Business Summary

• 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

• Only nonstop jet service on over 60% of core routes

• Serves 27 cities from Milwaukee, 5 from Omaha and 7 from Kansas City

- Fleet of 24 DC-9 and 10 MD-80 jet aircraft in service

• Developed Skyway Airlines operations to build feeder traffic

- Fleet of 15 Beech 1900D turboprop aircraft and 6 Fairchild Aerospace 328JET aircraft

- Serves 30 cities

MEH 4

Midwest Express Airlines: Today

Midwest Express Serves 28 Destinations in 18 States

MEH 5

Growing Skyway Service

Skyway Serves 30 Markets, Enhancing the Strength of the Milwaukee Hub

MEH 6

Premium Service Product - Key Features• Superior Value

- Fare structure competitive with other airlines• Convenient Schedule

- Only nonstop service on over 60% of core markets served- Designed to allow maximum use of business day

• Most Spacious Seating- First-class leather seats- Fewer seats / no middle seat / better pitch- Consistently rated ” the most comfortable coach seat”

• Superior Amenities- Premium food served on china- Complimentary champagne, wine and newspapers- Chocolate chip cookies baked onboard on luncheon flights

• Customer Focus- Extensive employee training directed at service to the customer- Same service niche for 16 years

MEH 7

Premium Service Product - Key Benefits

• Customer Preference / Loyal Following

- Independent research shows 75% of Milwaukee frequent fliers prefer Midwest Express

• More Profitable Passenger Mix

- Higher percentage of business travelers than other airlines

- Effective yield management

• Premium Yields

- In aggregate, 30% to 40% higher than industry

MEH 8

Our Track Record

MEH 9

Consistent Revenue Growth

• 10-year compounded annual revenue growth of 14%

0

100

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500

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

Source: Midwest Express Holdings, Inc.Source: Midwest Express Holdings, Inc.

(Dol

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(Dol

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RevenueRevenue

MEH 10

010

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30

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6070

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

Operating Income

Operating Profits for Each of the Past 14 Years• 1987-2000 operating income of $282.9 million on sales of $3.1 billion• 1987-2000 operating margin of 9.1%• 1995-2000 operating margin of 10.2%

Source: Midwest Express Holdings, Inc.Source: Midwest Express Holdings, Inc.

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(Dol

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Operating IncomeOperating Income

Note: Information as reported, not pro forma

11.9%9.4% 8.1% 4.0%0.5% 3.1%

9.6% 5.5%

12.1% 11.3%11.2%

14.3%13.6%

1.4%

MEH 11

Ability to Capture Premium Yields

• Midwest Express has Historically Maintained a Significant Yield Premium

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0.05

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0.25

0.30

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

Midwest Express (jet operations)

Average of U.S. Majors

Source: Midwest Express Airlines, Inc./Airline Monitor Source: Midwest Express Airlines, Inc./Airline Monitor

(Dol

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)(D

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Revenue YieldRevenue Yield

$.193

$.133 e

MEH 12

Yield Premium ExampleOther Airline Midwest Express

Aircraft Type 737-300 DC-9-30

Seat Capacity 134 84

Load Factor 64% 64%

Fare Class Seats Fare Yield Seats Fare Yield

A 9 $215 $0.24 21 $215 $0.24

B 5 $150 $0.17 19 $150 $0.17

C 33 $125 $0.14 9 $125 $0.14

D 39 $105 $0.12 5 $105 $0.12

Total 86 54

Average Fare $127 $167

Revenue Yield $0.14 $0.19

MEH 13

Yields More Than Offset Higher Product Costs

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0.0

0.5

1.0

1.5

2.0

2.5

1993 1994 1995 1996 1997 1998 1999 2000e

Midwest Express (jet operations)

U.S. Majors

Source: Midwest Express Airlines, Inc./The Airline Monitor (MEA information as reported, not proforma)Source: Midwest Express Airlines, Inc./The Airline Monitor (MEA information as reported, not proforma)

(Cen

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(Cen

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Operating Profit per ASM for Midwest Express vs. U.S. MajorsOperating Profit per ASM for Midwest Express vs. U.S. Majors

MEH 14

2000 - It Was a Difficult Year

MEH 15

Several Issues Impacted 2000• Higher Fuel Prices

- $36.1 million fuel price impact- Essentially no fuel was hedged in 2000

• Threatened Pilot Labor Action - Revenue impact from travelers booking on other carriers- Higher labor costs

• Slower Capacity Growth than Planned Resulted in Higher Unit Cost- Training constraints- Aircraft refurbishment delays- Pilot attrition

• Unsuccesful start-up of Indianapolis operation- Competitive reaction- Inability to acquire Washington DC slots- Limited resources to support plan

MEH 16

Profitability: 1999-2000

Revenue $447.6 $480.0 7.3%

Oper Income 60.7 6.9 (88.7%)

Net Income 38.8 5.2 (86.5%)

Net Margin 8.7% 1.1% (7.6 pts)

Earnings/ Share $2.71 $.37 (86.3%)

Cash Flow(1) 52.0 22.2 (57.3%)

Year-to-Date as of December 31,

1999 2000 Change

Note: Represents the consolidated financial results of Midwest Express Holdings, Inc. - All dollars in millions Note: Represents the consolidated financial results of Midwest Express Holdings, Inc. - All dollars in millions except Earnings Per Shareexcept Earnings Per Share

(1)(1) Cash Flow = Net Income plus depreciation and amortizationCash Flow = Net Income plus depreciation and amortization

MEH 17

Operating Statistics: 1999-2000

Yield 18.5¢ 19.3¢ 4.1%

RPMs (millions) 1,958.5 1,974.5 0.8%

ASMs (millions) 2,993.8 3,163.2 5.7%

Load Factor 65.4% 62.4% (3.0 pts)

Revenue Per ASM 13.4¢ 13.3¢ (1.1%)

Cost Per ASM 11.5¢ 13.0¢ 12.7%

Fuel Price 60.7¢ 100.0¢ 64.4%

Year-to-Date as of December 31,

1999 2000 Change

Note: For Midwest Express OnlyNote: For Midwest Express Only

MEH 18

Areas of Focus/Opportunity

• Pilot Training - Our Solution

• Competitive Environment/Corporate Discounting - Our Strategy

• Fleet Maintenance and Fleet Plan - Our Design

• Marketing Programs - Our Vision

MEH 19

Pilot Training

• Investment in flight standards and training infrastructure

• Better long-term planning for simulator requirements

• Preferred customer status for simulator time

• In-house technology to reduce simulator requirements

• Attrition still a potential problem because of other airline pilot contracts

MEH 20

Competitive Environment

• Current competitive environment is not expected to change significantly

• Recent study supports continued targeting of business traveler segment

• Continued focus on sustaining market share dominance in Milwaukee

• Grow Kansas City with the objective of being a dominant player- Air Midwest codeshare effective March 2001- Advertising promotion focus first quarter 2001- Improve schedules/more markets

MEH 21

Fleet Maintenance

• Several aircraft maintenance issues impacted operational/financial results- Transition to phased maintenance program (MSG3)- Aircraft damage incidents increased- Aircraft conformity issues with recent aircraft acquisitions- Higher than anticipated employee turnover- Unscheduled engine repair costs abnormally high ($3.0 million)

• Situation will improve as the year progresses- Phased maintenance transition completed by mid-2001- Selective outsourcing- Organization realignment for process improvement

MEH 22

Fleet Plan

• Three additional MD80 aircraft and three additional 328JET aircraft will provide double-digit capacity growth in 2001

• Fairchild decision to cancel 428JET program will result in new aircraft type- Decision expected in first quarter 2001- Evaluating Embraer and Bombardier regional jets

• Midwest Express evaluating long-term fleet growth options- Decision expected in first quarter 2001- Evaluating Boeing and Airbus products

MEH 23

Marketing Programs

• Corporate discounting; will participate more but selectively

• Evaluating internet alternatives

• Continued focus on on-line sales

• Implementation of a corporate Web site product

MEH 24

Attractive Growth Strategy

MEH 25

Recreating the Success of Milwaukee

Omaha• Began operations in May 1994 with three jet aircraft

• Successfully replicated the business strategy from Milwaukee

• 6% overall market share, but dominant carrier in markets served

• Profitable since 10th month of operation

Kansas City• Serving Milwaukee-Kansas City since November 1989

• Initiated service from Kansas City to Boston (9/96),

New York (5/97), San Antonio (5/99),Washington Dulles (2/00), Washington National (10/00) and Atlanta (4/01)

• Consistently profitable, meeting expectations

• Announced as third base of operation in September 2000

• Air Midwest codeshare effective March 2001

MEH 26

Looking Ahead

MEH 27

Objectives in 2001

• Return to historical revenue and earnings growth

• Continued focus on customer satisfaction

• Improved operational performance

• Aggressively defend Milwaukee base and grow Kansas City

• Fleet plan decisions in first quarter