Blade Air Mobility Reports Financial Results for the Quarter and Calendar Year Ended December 31, 2021

Blade Air Mobility, Inc. (Nasdaq:BLDE, “Blade” or the “Company”), a technology-powered air mobility platform, today announced financial results for the quarter and calendar year ended December 31, 2021. Commencing January 1, 2022, the Company’s fiscal years will end on December 31st and the Company's fiscal quarters will match calendar quarters.

“Blade's growth in both the quarter and calendar year 2021, which had revenue up 156% to $67.2 million, significantly exceeded our expectations,” said Rob Wiesenthal, Blade’s Chief Executive Officer. "Our ability to accelerate revenue and flight profit growth in the face of a dynamic COVID landscape is a testament to the financial breadth of our business lines and the flexibility of our asset-light model. We are especially pleased that our passenger volumes for the calendar year 2021 reached 2019 pre-COVID levels with substantially improved flight profit."

“The December 2021 quarter did not experience a material impact from Omicron, though we have seen a limited impact to our Blade Airport and Vancouver businesses in the March 2022 quarter-to-date,” said Will Heyburn, Blade’s Chief Financial Officer. "We are already seeing significant improvement and do not expect a material negative impact to revenues in the current March 2022 quarter. Given positive trends including today's elimination of the New York mask mandate, increased return-to-office as well as growing commercial airline bookings, we expect any impact to be short-lived."

“Our successful acquisition strategy has brought additional scale and resiliency to our business model, strengthening the Blade value proposition with our third-party operators,” said Melissa Tomkiel, Blade's President. "The combined volumes of our growing retail and medical businesses is already leading to improved aircraft availability and pricing, paving the way for continued expansion.”

Quarter Ended December 31, 2021 Financial Highlights

• Total revenues up 208% to $24.6 million in the quarter ended December 31, 2021 versus $8.0 million in the prior year 2020 period; up 371% versus pre-COVID 2019 period revenues of $5.2 million
• Short Distance revenues up 191% to $6.2 million in the December 2021 quarter versus $2.1 million in the prior year 2020 period, driven primarily by hybrid remote-office work policies, which extended the typical season of our commuter business, as well as the resumption of our Blade Airport service, which was paused due to COVID in 2020 and our acquisition of Helijet's passenger routes
• MediMobility Organ Transport and Jet revenues increased 227% to $18.0 million in the December 2021 quarter versus $5.5 million in the prior year 2020 period driven by the addition of new hospital and jet clients and our acquisition of Trinity Air Medical ("Trinity")
• Flight margin decreased to 16% in the December 2021 quarter versus 20% in the prior year 2020 period, driven primarily by our resumption of Blade Airport service, which, as expected during the ramp phase, was operating below breakeven utilization in the period. Absent Blade Airport, flight margin would have been approximately 18% in the December 2021 quarter
• Flight margin increased to 16% in the December 2021 quarter versus (11)% in the pre-COVID 2019 period driven by improved utilization on Blade Airport and a larger flight margin contribution from our MediMobility Organ Transport and Jet businesses, driven by revenue growth from $1.9 million in 2019 to $18.0 million in 2021
• Net income increased to $0.8 million in the December 2021 quarter versus net loss of $2.4 million in the 2020 prior year period and net loss of $4.7 million in the 2019 period, driven primarily by increased revenues and the favorable change in fair value of warrant liabilities of $10.9 million, partially offset by non-cash stock-based compensation of $2.9 million, one-time expenses of $0.9 million, and lower flight margin attributable primarily to the recent re-launch of Blade Airport service, which, as expected during the ramp phase, was operating below breakeven utilization during the 2021 period, but was paused during the 2020 period
• Adjusted EBITDA decreased to $(5.9) million in the December 2021 quarter from $(1.0) million in 2020 and $(4.6) million in 2019. The decrease versus 2020 was attributable primarily to additional headcount and new recurring expenses related to Blade’s status as a public company, consisting of incremental D&O insurance of $1.6 million and other fees paid to public company advisors and auditors of $0.6 million
• Excluding the new recurring public company expenses above, Comparable Adjusted EBITDA of $(3.7) million in the December 2021 quarter decreased versus $(1.0) million in the prior year 2020 period, driven primarily by increased corporate headcount, but improved from $(4.6) million in the pre-COVID 2019 period

Business Highlights and Recent Updates

• On February 1, 2022, the Board of Directors of Blade acted to change the Company’s fiscal year from ending on September 30th to ending on December 31st. As a result, the three-months ended December 31, 2021 was a transition period and Blade’s financial results for the period from October 1, 2021 to December 31, 2021 will be filed on a Form 10-QT transition report. Blade’s current full fiscal year began on January 1, 2022 and will end on December 31, 2022. The Company’s fiscal quarters in 2022 will match calendar quarters.
• Successful integration of Blade MediMobility and Trinity resulted in multiple new hospital clients across the United States and expansion within existing accounts
• There was no material impact from Omicron in the December 2021 quarter. In the March 2022 quarter-to-date, Omicron impact has been limited to Blade Airport and Vancouver. Annualized Blade Airport passenger run-rate dropped to a low of approximately 5,000 in early January, from approximately 20,000 in December and has since doubled to approximately 10,000. We expect recent positive trends, including the elimination of New York's mask mandate, increased office re-openings and growing passenger airline bookings to contribute to a continued near-term recovery

Conference Call

The Company will conduct a conference call starting at 4:30 p.m. ET on Thursday, February 10, 2022 to review the results for the three months and calendar year ended December 31, 2021.

Participants may access the call at 1-877-451-6152, international callers may use 1-201-389-0879, and request to join the Blade Urban Air Mobility earnings call. A live webcast will also be available by visiting the Investor Relations section of the Company’s website at https://ir.blade.com/news-events.

A telephonic replay will be available shortly after the conclusion of the call and until February 24, 2022. Participants may access the replay at 1-844-512-2921, international callers may use 1-412-317-6671, and enter access code 13726792. An archived replay of the call will also be available on the Investors Relations section of the Company’s website at https://ir.blade.com/.

Use of Non-GAAP Financial Information

Adjusted EBITDA - To supplement its consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles (“GAAP”), Blade reports Adjusted EBITDA, which is a non-GAAP financial measure. This measure excludes non-cash items or certain transactions that are not indicative of ongoing Company operating performance and / or items that management does not believe are reflective of our ongoing core operations (as shown in the table below).

Comparable Adjusted EBITDA - To provide a like for like comparison of the current period (a “post going public” period) to “pre going public” periods, Blade reports Comparable Adjusted EBITDA, which is a non-GAAP financial measure. This measure excludes from the current period’s Adjusted EBITDA ongoing third-party costs driven by the Company becoming a public company, namely higher D&O insurance premiums and costs in connection with preparation of reviewed and audited periodical financial statements. Management believes Comparable Adjusted EBITDA provides meaningful supplemental information regarding our continuing operating performance by excluding from the current period the impact of these public company costs that did not affect prior periods. We expect to incur similar costs in future periods, and we do not anticipate presenting similarly adjusted measures once both the current period and the comparative prior period disclosed include these expenses.

Flight Profit and Flight Margin - Blade defines Flight Profit as revenue less cost of revenue. Blade defines Flight Margin for a period as Flight Profit for the period divided by revenue for the same period.

Blade believes that these non-GAAP measures, viewed in addition to and not in lieu of our reported GAAP results, provide useful information to investors by providing a more focused measure of operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. The non-GAAP measures presented herein may not be comparable to similarly titled measures presented by other companies. Adjusted EBITDA and Comparable Adjusted EBITDA have been reconciled to the nearest GAAP measure in the tables within this press release.

About Blade Air Mobility

Blade is a technology-powered, global air mobility platform committed to reducing travel friction by providing cost-effective air transportation alternatives to some of the most congested ground routes in the U.S. and abroad. Today, the Company predominantly uses helicopters and amphibious aircraft for its passenger routes and is also one of the largest air medical transporters of human organs for transplant in the world. Its asset-light model, coupled with its exclusive passenger terminal infrastructure, is designed to facilitate a seamless transition to Electric Vertical Aircraft (“EVA” or “eVTOL”), enabling lower cost air mobility to the public that is both quiet and emission-free.

For more information, visit www.blade.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts and may be identified by the use of words such as “anticipate,” “believe,” “could,” “continue,” “expect,” “estimate,” “may,” “plan,” “outlook,” “future” and “project” and other similar expressions and the negatives of those terms. These statements, which involve risks and uncertainties, relate to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable and may also relate to Blade’s future prospects, developments and business strategies. In particular, such forward-looking statements include statements concerning Blade’s estimated and future results of operations, business strategies, competitive position, industry environment and potential growth opportunities. These statements are based on management’s current expectations and beliefs, as well as a number of assumptions concerning future events. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance.

Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside Blade’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements include: loss of our customers; decreases in our existing market share; effects of competition; effects of pricing pressure; the inability of our customers to pay for our services; the loss of our existing relationships with operators; the loss of key members of our management team; changes in our regulatory environment, including aviation law and FAA regulations; the inability to implement information systems or expand our workforce; changes in our industry; heightened enforcement activity by government agencies; interruptions or security breaches of our information technology systems; the expansion of privacy and security laws; our ability to expand our infrastructure network; our ability to identify, complete and successfully integrate future acquisitions; our ability to remediate any material weaknesses or maintain effective internal controls over financial reporting; the ability to continue to meet applicable listing standards; costs related to our business combination; the possibility that we may be adversely affected by other political, economic, business and/or competitive factors; the impact of COVID-19 and its related effects on our results of operations, financial performance or other financial metrics; the inability or unavailability to use or take advantage of the shift, or lack thereof, to EVA technology; pending or potential litigation; and other factors beyond our control. Additional factors can be found in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”). New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made, and Blade undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, changes in expectations, future events or otherwise.

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