Blade Air Mobility : Q4 2023 Investor Update Letter

Q4 2023 Investor Update

To Our Shareholders,

2023 was another record year for Blade. Our full-year Revenue increased by 54.1% to $225.2 million versus the prior year, while Flight Profit increased by 84.0% as our intense focus on margin enhancement initiatives generated results. This led to a $10.8 million improvement in Adjusted EBITDA

versus the prior year period, to ($16.6) million for the full year 2023.

Blade Airport, our helicopter service between Manhattan and

New York Area airports, starting at $195 per seat, delivered

positive Flight Profit not just for Q3 and Q4, but also for the full year 2023.

When we launched Blade Airport in 2021, we set up the unit economics to be profitable at just above two out of six seats sold per flight. Though we knew that our growth and customer acquisition metrics were pointing in the right direction, the two-

year ramp-up process required hard work from our operations team and patience from our investors. We would like to acknowledge our flier experience, flier relations, operations and on-the-ground logistics teams, and our ground transport partners at Mercedes-Benz USA for working so diligently to make this product a success. We look forward to continued growth this year and beyond, as we begin to transition to Electric Vertical Aircraft (EVA) in the coming years.

On the operational front, we are excited to announce the acquisition of eight jet aircraft to support our continued rapid growth in Medical, enabling lower cost service and improved availability for the hospitals we serve and improved unit economics for Blade.

Our Medical business has more than tripled since our acquisition of Trinity in 2021, presenting us with an opportunity to further leverage our scale through the purchase of a limited number of aircraft. By purchasing aircraft that we already utilize exclusively, and by maintaining the existing operator and crews, we are well-positionedto capture incremental fixed- cost leverage without the risk of building a new medical aircraft operation from the ground up.

We believe this change will further improve our competitive positioning without compromising the benefits of our asset-light model, as the vast majority of our Medical flights and nearly 100% of our Passenger flights will continue to be serviced by our very select group of third-partyowned and operated aircraft in the U.S., Europe and Canada.

Q4 2023 Investor Update | 2

Blade Europe - Saint Tropez, France

Financial Results and Outlook

We manage our business primarily based on Flight Profit rather than Revenue, which can be influenced by a number of factors like fuel costs and landing fees, which we largely pass through, jet charter market pricing, aircraft repositioning and mix shifts between air and ground in our Medical business.

Recently, we have made significant progress transitioning more of our Medical flights to dedicated aircraft that provide us with fixed cost leverage as we grow and are strategically based near our hospital customers. This has enabled us to improve our Flight Profit dollars per trip while reducing costs for our hospital customers and, more importantly, increasing availability with shorter call-outtimes, which can lead to better patient outcomes. When paired with our growing fleet of medical vehicles and new organ placement offering, we have built the most cost-effectiveand reliable end-to-endorgan logistics platform in the United States. Even though we saw a slight sequential decrease in Medical Revenues from Q3 to Q4, Medical Flight Profit increased sequentially over the same period, a testament to our strategy.

At the same time, we improved our Passenger Flight Profit margins by 5 percentage-pointsin Q4 2023 versus the prior year, demonstrating our path to full-yearprofitability in the Passenger segment, which we expect in 2025.

As such, Flight Profit increased 65.7% to $9.0 million in Q4 2023 versus $5.4 million in the prior year period, well ahead of our expectations, driven by strong growth in our Medical business and improved profitability across our U.S. Short Distance business. We are pleased to see Flight Profit growing significantly ahead of Revenue, which increased 24.5% to $47.5 million in Q4 2023.

Now, a few highlights from our business segments in the fourth quarter. Medical Segment Revenue increased 48% to $32.0 million in the fourth quarter of 2023 versus $21.6 million in the comparable 2022 period. Approximately 45% of this quarter's growth was driven by the addition of new customers, with the remainder driven by growth with existing clients, as well as strong overall market growth. Industry-wide, we continue to see longer-distance trips versus the prior year period as transplant centers fly farther to enable more transplants resulting in more flight hours and increasing the Revenue opportunity for Blade.

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Blade Medical - Hawker 800 Jet

Medical Revenue was at the low end of our expectations this quarter. Compared to Q3 2023, we saw a slightly higher percentage of organ transport travelling ground-only while our increased use of dedicated aircraft helped reduce repositioning for our hospital customers. Generally, use of dedicated aircraft will slightly decrease flight hours and Revenue per air trip, while Flight Profit per air trip will increase.

Flight Profit performance, on the other hand, exceeded our expectations. Our previous guidance towards Medical Flight Margins was in the 18 to 19 percent range for Q4 2023 with continued steady improvement towards 20%+ in the future. We achieved a 20.1% medical Flight Profit Margin, a 4-percentage-point improvement year-over-year and a 2-percentage- point sequential improvement versus Q3 2023. Our faster-than-planned adoption of dedicated aircraft and owned ground vehicles allowed us to achieve this important milestone more swiftly than initially anticipated.

Medical Segment Flight Profit was $6.4 million in the current quarter, an increase of $2.9 million or 81% versus $3.6 million in the comparable 2022 period. Medical Segment Adjusted EBITDA was up 58% to $2.5 million in the fourth quarter of 2023, versus $1.6 million in the comparable 2022 period. Q4 2023 Medical SG&A was a little heavier than we expected, given startup costs associated with TOPS and some end-of-yearcommission catch-up,driven by great performance. We are expecting slightly lower Medical SG&A in Q1, followed by low single-digitssequential growth, as we ramp up TOPS and add logistics staff.

We are also excited to announce the acquisition of eight Hawker 800 aircraft to bolster our Medical operations. In our experience, the Hawker platform is longer range and lower cost, with more cargo capacity than other aircraft used by our competitors. This new arrangement results in both lower costs for our customers and higher margins for Blade. Based on our average utilization of these aircraft in 2023, we should see a 5 to 10 percentage-pointFlight Profit margin uplift for flights utilizing these owned aircraft, which will help us to achieve our goal of 25%+ Flight Profit margins in Medical over the coming quarters. We recently signed the purchase agreement and expect to start seeing improved margins during the month of March.

These specific aircraft are among our most highly utilized, are under capacity purchase agreements today, and are strategically positioned in areas with significant demand from overlapping customers. Going forward, we will continue to assess aircraft acquisitions only in areas where we are already servicing significant customer demand. We remain

committed to our asset-light model and expect the significant majority of our flying to remain with third-party owned

and operated aircraft. For example, we expect the specific owned aircraft discussed today to represent only about 10% of

Blade's overall flying activity in 2024. The opportunity for further margin expansion is apparent.

Q4 2023 Investor Update | 4

The $21.0 million acquisition cost will be funded through $11.7 million in cash and $9.3 million in existing deposits with the operator.

Turning to our Passenger business, Q4 for our Short Distance segment is always a seasonally light quarter, but we are pleased that Revenue was up 14% to $10.7 million in the fourth quarter of 2023, versus $9.4 million in the comparable 2022 period driven by an increase in seat volume and stronger pricing in our by-the-seat Blade Airport product, and increased Revenue in Europe and Canada.

Blade Airport continued to be a positive contributor to Flight Profit this quarter and was Flight Profit positive for full-year2023, meaning it covered all costs related to air and intra-terminal ground transportation for our fliers.

In Jet and Other, Revenues decreased 32.4% to $4.8 million in the current quarter versus $7.1 million in the prior year period driven primarily by our decision to discontinue BladeOne, our seasonal by-the-seat jet service between New York and South Florida, a $1.7mm impact, and softness in jet charter.

Passenger Segment Flight Profit increased by $0.7 million or 37% to $2.6 million in the fourth quarter of 2023, from $1.9 million in the same period of 2022. The increase was attributable primarily to improved pricing and utilization in our by- the-seatBlade Airport product. All this led to a $1.1 million improvement in Passenger Segment Adjusted EBITDA to ($2.6) million in the fourth quarter of 2023 versus ($3.8) million in the prior year period.

On the corporate cost side, yet again we were able to reduce our Adjusted Unallocated Corporate Expenses, decreasing 11.3% in Q4 2023 vs. the prior year period which, when coupled with our Flight Profit growth across Medical and Passenger, led to a $2.7 million improvement in Adjusted EBITDA versus the prior year period to ($5.2) million in Q4 2023.

Conclusion

With respect to our balance sheet, given our improving financial performance, we expect that the majority of our $166 million in cash and short-termsecurities, as of the end of the fourth quarter of 2023, will be utilized for tactical acquisitions in our medical segment or further accretive investments in our aircraft supply base.

The best is yet to come and we are excited about the years ahead.

Sincerely,

Rob Wiesenthal

Founder and Chief Executive Officer

Q4 2023 Investor Update | 5

Use of Non-GAAP Financial Information

Blade believes that the non-GAAP measures discussed below, viewed in addition to and not in lieu of our reported U.S. Generally Accepted Accounting Principles ("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, Segment Adjusted EBITDA, Adjusted Unallocated Corporate Expenses, Corporate Expenses, Adjusted Corporate Expenses, Flight Profit, Flight Margin, Free Cash Flow and Pro forma revenue have been reconciled to the nearest GAAP measure in the tables within this press release.

Adjusted EBITDA and Segment Adjusted EBITDA - 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). Blade defines Segment Adjusted EBITDA as segment net income (loss) excluding non-cash items or certain transactions that management does not believe are reflective of our ongoing core operations.

Adjusted Unallocated Corporate Expenses - Blade defines Adjusted Unallocated Corporate Expenses as expenses attributable to our Corporate expenses and software development operating segment less 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 that cannot be allocated to either of our reporting segments (Passenger and Medical). Adjusted Unallocated Corporate Expenses has the same meaning as Segment Adjusted EBITDA for our Corporate expenses and software development operating segment and is reconciled in the tables below under the caption "Reconciliation of Segment Net Income (loss) to Segment Adjusted EBITDA."

Constant currency - The consolidated financial statements included here are presented in U.S. dollars. However, Blade's international operations give rise to fluctuations in foreign exchange rates. To compare results between periods as if exchange rates had remained constant period-over-period and allow change in revenue to be evaluated without the impact of foreign currency exchange rate fluctuations, Blade has included results in constant currency. These are calculated by applying the current period exchange rates to local currency reported results for both the current and prior year.

Corporate Expenses and Adjusted Corporate Expenses - Blade defines Corporate Expenses as total operating expenses excluding cost of revenue. Blade defines Adjusted Corporate Expenses as Corporate Expenses excluding 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.

Flight Profit and Flight Margin - Blade defines Flight Profit as revenue less cost of revenue, and in 2022 excluding non-cash right- of-use ("ROU") asset amortization. Cost of revenue consists of flight costs paid to operators of aircraft and cars, landing fees, ROU asset amortization and internal costs incurred in generating ground transportation revenue using the Company's owned cars. Blade defines Flight Margin for a period as Flight Profit for the period divided by revenue for the same period. Blade believes that Flight Profit and Flight Margin provide a more accurate measure of the profitability of the Company's flight and ground operations, as they focus solely on the direct costs associated with those operations. Blade believes the exclusion of ROU asset amortization from Flight Profit and Flight Margin is helpful as it better represents the Company's actual payable charges in exchange for flights served by the operators. We also believe that excluding this non-cash ROU asset amortization expense will aid in comparing to prior and future periods as we do not expect it to re-occur after the fourth quarter of 2022, which it did not, as shown in the table below.

Free Cash Flow - Blade defines Free Cash Flow as net cash provided by / (used in) operating activities less capital expenditures.

Pro forma revenue - Pro forma revenue gives effect to revenue from acquisitions that occurred after the commensurate period of the prior year as if they had been acquired on the first day of the commensurate period of the prior year. Pro forma change in revenue is calculated as the difference between the current reported GAAP revenue and the comparative period pro forma revenue. Management believes that discussing pro forma revenue contributes to the understanding of Blade's performance and trends, because it allows for comparisons of the current year period to that of prior years, normalized for the impact of acquisitions. Management believes that pro forma change in revenue assists in measuring the underlying revenue growth of our business as it stands as of the end of the current year period, which we believe provides insight into our then-current operations. Pro forma change in revenue does not represent organic revenue generated by our business as it stood at the beginning of the prior year period.

Q4 2023 Investor Update | 6

Financial Results

BLADE AIR MOBILITY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share data, unaudited)

			December 31,		December 31,
			2023		2022
	Assets
	Current assets:
	Cash and cash equivalents (1)	$	27,873	$	41,338
	Restricted cash (1)		1,148		3,085
	Accounts receivable, net of allowance of $98 and $0 at December 31, 2023 and December 31,		21,005		10,877
	2022
	Short-term investments		138,264		150,740
	Prepaid expenses and other current assets		17,971		12,086
	Total current assets		206,261		218,126
	Non-current assets:
	Property and equipment, net		2,899		2,037
	Intangible assets, net		20,519		46,365
	Goodwill		40,373		39,445
	Operating right-of-use asset		23,484		17,692
	Other non-current assets (1)		1,402		1,360
	Total assets	$	294,938	$	325,025
	Liabilities and Stockholders' Equity
	Current liabilities:
	Accounts payable and accrued expenses	$	23,859	$	16,536
	Deferred revenue		6,845		6,709
	Operating lease liability, current		4,787		3,362
	Total current liabilities		35,491		26,607
	Non-current liabilities:
	Warrant liability		4,958		7,083
	Operating lease liability, long-term		19,738		14,970
	Deferred tax liability		451		1,876
	Total liabilities		60,638		50,536

Stockholders' Equity

Preferred stock, $0.0001 par value, 2,000,000 shares authorized at December 31, 2023 and December 31, 2022. No shares issued and outstanding at December 31, 2023 and December 31, 2022.

Common stock, $0.0001 par value; 400,000,000 authorized; 75,131,425 and 71,660,617 shares issued at December 31, 2023 and December 31, 2022, respectively.

Additional paid in capital

Accumulated other comprehensive income

Accumulated deficit

Total stockholders' equity

-

7

390,083

3,964

(159,754)

234,300

-

7

375,873

2,287

(103,678)

274,489

Total Liabilities and Stockholders' Equity	$	294,938		$	325,025

(1) Prior year amounts have been updated to conform to current period presentation.

Q4 2023 Investor Update | 7

BLADE AIR MOBILITY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share data, unaudited)

				Three Months Ended		Year Ended December 31,
				December 31,
				2023		2022		2023		2022
	Revenue		$	47,478	$	38,135	$	225,180	$	146,120
	Operating expenses
	Cost of revenue		38,468		33,160		183,058		123,845
	Software development			988		1,622		4,627		5,545
	General and administrative		41,242		20,576		95,174		62,510
	Selling and marketing			2,413		2,455		10,438		7,749
	Total operating expenses		83,111		57,813		293,297		199,649
	Loss from operations		(35,633)		(19,678)		(68,117)		(53,529)
	Other non-operating income (expense)
	Interest income, net			2,264		1,542		8,442		3,434
	Change in fair value of warrant liabilities		(1,698)		1,984		2,125		24,225
	Realized gain (loss) from sales of short-term investments			103		(91)		8		(2,162)
	Total other non-operating income		669		3,435		10,575		25,497
	Loss before income taxes		(34,964)		(16,243)		(57,542)		(28,032)
	Income tax benefit		(1,023)		(828)		(1,466)		(772)
	Net loss	$	(33,941)	$	(15,415)	$	(56,076)	$	(27,260)
	Net loss per share:
	Basic		$	(0.45)	$	(0.22)	$	(0.76)	$	(0.38)
	Diluted	$	(0.45)	$	(0.22)	$	(0.76)	$	(0.38)
	Weighted-average number of shares outstanding:
	Basic		74,759,544		71,648,610		73,524,476		71,238,103
	Diluted			74,759,544		71,648,610		73,524,476		71,238,103

Q4 2023 Investor Update | 8

BLADE AIR MOBILITY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands, unaudited)

				Three Months Ended			Year Ended December 31,
				December 31,
				2023			2022				2023			2022
	Cash Flows From Operating Activities:
	Net loss	$	(33,941)	$	(15,415)		$	(56,076)	$	(27,260)
	Adjustments to reconcile net income (loss) to net cash and restricted cash used
	in operating activities:
	Depreciation and amortization		1,806			1,984				7,111			5,725
	Stock-based compensation			3,153			2,650				12,501			8,277
	Change in fair value of warrant liabilities		1,698			(1,984)				(2,125)			(24,225)
	Impairment of intangible assets			20,753			-				20,753			-
	Realized (gain) loss from sales of short-term investments		(103)			91				(8)			2,162
	Realized foreign exchange loss			-			(1)				6			6
	Accretion of interest income on held-to-maturity securities		(1,803)			(783)				(6,519)			(1,094)
	Deferred tax benefit			(1,023)			(772)				(1,466)			(772)
	Loss on disposal of property and equipment		48			(129)				48			68
	Bad debt expense			(8)			-				163			-
	Changes in operating assets and liabilities:
	Prepaid expenses and other current assets			(4,928)			(1,474)				(6,032)			(5,255)
	Accounts receivable		125			(886)				(10,254)			(5,347)
	Other non-current assets			12			396				4			(663)
	Operating right-of-use assets/lease liabilities		(42)			415				379			611
	Accounts payable and accrued expenses			4,963			5,645				9,049			9,900
	Deferred revenue		(30)			1,154				117			737
	Other			-			5				-			-
	Net cash used in operating activities		(9,320)			(9,104)				(32,349)			(37,130)
	Cash Flows From Investing Activities:
	Acquisitions, net of cash acquired			-			-				-			(48,101)
	Investment in joint venture		(39)			-			(39)			(190)
	Purchase of property and equipment			(24)			(11)				(2,109)			(730)
	Proceeds from disposal of property and equipment		138			-			138			-
	Purchase of short-term investments			-			(151)				(135)			(729)
	Proceeds from sales of short-term investments		-			10,000				20,532			258,377
	Purchase of held-to-maturity investments			-			(87,376)				(265,835)			(227,287)
	Proceeds from maturities of held-to-maturity investments		-			78,000				264,537			98,000
	Net cash provided by investing activities			75			462				17,089			79,340
	Cash Flows From Financing Activities:
	Proceeds from the exercise of common stock options		7			6				70			87
	Taxes paid related to net share settlement of equity awards			(30)			(6)				(146)			(1,171)
	Net cash used in financing activities		(23)			-			(76)			(1,084)
	Effect of foreign exchange rate changes on cash balances		15			81				(66)			72
	Net (decrease) increase in cash and cash equivalents and restricted cash			(9,253)			(8,561)				(15,402)			41,198
	Cash and cash equivalents and restricted cash - beginning		38,274			52,984				44,423			3,225
	Cash and cash equivalents and restricted cash - ending		$	29,021		$	44,423			$	29,021		$	44,423
	Reconciliation to consolidated balance sheets
	Cash and cash equivalents	$	27,873	$	41,338		$	27,873	$	41,338
	Restricted cash			1,148			3,085				1,148			3,085
	Total	$	29,021	$	44,423		$	29,021	$	44,423

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Key Metrics and Non-GAAP Financial Information

BLADE AIR MOBILITY, INC.

DISAGGREGATED REVENUE BY PRODUCT LINE

(in thousands, unaudited)

				Three Months Ended		Year Ended December 31,
				December 31,
				2023		2022		2023		2022
	Passenger segment
	Short Distance	$	10,703	$	9,418	$	70,700	$	44,986
	Jet and Other			4,784		7,081		27,876		29,355
	Total	$	15,487	$	16,499	$	98,576	$	74,341
	Medical segment
	MediMobility Organ Transport		$	31,991	$	21,636		126,604		71,779
	Total	$	31,991	$	21,636	$	126,604	$	71,779
	Total Revenue	$	47,478	$	38,135	$	225,180	$	146,120

BLADE AIR MOBILITY, INC.

SEGMENT INFORMATION: REVENUE, FLIGHT PROFIT, FLIGHT MARGIN, ADJUSTED EBITDA WITH RECONCILIATION TO TOTAL ADJUSTED

		EBITDA
	(in thousands except percentages, unaudited)
				Three Months Ended			Year Ended December 31,
				December 31,
				2023			2022			2023			2022
	Passenger		$	15,487		$	16,499		$	98,576		$	74,341
	Medical			31,991			21,636			126,604			71,779
	Total Revenue		$	47,478		$	38,135		$	225,180		$	146,120
	Passenger		$	2,580		$	1,886		$	19,444		$	11,295
	Medical			6,430			3,553			22,678			11,592
	Total Flight Profit		$	9,010		$	5,439		$	42,122		$	22,887
	Passenger			16.7 %			11.4 %			19.7 %			15.2 %
	Medical			20.1 %			16.4 %			17.9 %			16.1 %
	Total Flight Margin			19.0 %			14.3 %			18.7 %			15.7 %
	Passenger		$	(2,635)		$	(3,769)		$	(4,988)		$	(6,367)
	Medical			2,505			1,587			10,754			5,116
	Total Segment Adjusted EBITDA			(130)			(2,182)			5,766			(1,251)
	Adjusted unallocated corporate expenses and software development			(5,118)			(5,773)			(22,399)			(26,200)
	Total Adjusted EBITDA		$	(5,248)		$	(7,955)		$	(16,633)		$	(27,451)

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