Wheels Up Announces First Quarter Results
PR Newswire
ATLANTA, May 1, 2025
Financial performance illustrates continued momentum of business transformation
Installation of Gogo high-speed satellite Wi-Fi to begin this summer
Agreement with Delta to extend $100 million revolving credit facility
Board of Directors authorizes stock repurchase program
ATLANTA, May 1, 2025 /PRNewswire/ -- Wheels Up Experience Inc. (NYSE: UP) today announced financial results for the first quarter of 2025. Highlights of the quarter, including GAAP results, non-GAAP financial measures and key performance metrics, are on pages two and three and incorporated herein.
Commentary from Wheels Up's Chief Executive Officer George Mattson about the company's financial and operating results for the first quarter ended March 31, 2025 is included in an Investor Letter that can be found on Wheels Up's Investor Relations website at https://investors.wheelsup.com.
First Quarter 2025 Results
-- Revenue of $177.5 million, down 10% year over year
-- Total Gross Bookings of $241.9 million, up 8% year over year
-- Gross loss of $1.1 million, a $15.5 million improvement year over year
-- Adjusted Contribution of $22.4 million equating to an Adjusted
Contribution Margin of 12.6%, up 12 percentage points year over year
-- Net loss of $99.3 million or $(0.14) per share
-- Adjusted EBITDA loss of $24.2 million, a 51% improvement year over year
-- Adjusted EBITDAR loss of $18.8 million, a 54% improvement year over year
"Our results this quarter show the progress we are making in our business transformation and we are pleased to see continued commercial momentum in light of more uncertain economic conditions. We remain focused on improving profitability and expanding margins by modernizing our fleet, leveraging our first-of-its-kind partnership with Delta, and delivering premium solutions for every customer journey," said Wheels Up Chief Executive Officer George Mattson. "With solid liquidity, an improving path toward sustainable profitability, and other achievements that reflect the strength of our business, our Board of Directors has authorized a $10 million open market share repurchase program to illustrate our commitment to driving value for our shareholders."
Business highlights
-- More profitable flying. The company's top priority has been to continue
realigning its product, fleet and flying to better meet customer demand.
As a result of the associated increased Utility and operational
efficiency, Gross loss improved $15 million year over year in the March
quarter despite a $20 million decline in revenue. Adjusted Contribution
Margin increased by nearly 12 percentage points year over year to 12.6
percent, due primarily to the 23 percent increase in Utility during the
March quarter.
-- Leading operational reliability. A key component of Wheels Up's strategic
growth plan is to deliver the industry's most reliable operation for our
customers. During the March quarter, the company delivered a 97 percent
Completion Rate and 85 percent On-Time Performance. As the fleet rapidly
transitions to a modernized and more operationally reliable fleet, we
expect to be able to drive higher On-Time Performance, Completion Rate
and Utility.
-- Continuing to drive value in our strategic partnership with Delta. New
corporate accounts are the fastest growing segment in the business,
illustrating the traction the company is seeing in its joint selling
efforts with Delta. For the March quarter, corporate membership fund
sales increased 13 percent year over year and represented nearly 40
percent of total membership fund sales. In addition, this summer, Wheels
Up and Delta will partner to offer customers new options for hybrid
travel combining Delta One commercial and Wheels Up private flights for
European destinations. Customers flying to Athens, Barcelona, Naples,
Nice and Rome will be offered seamless transitions to private jet flights
and helicopter transfers arranged by Wheels Up for arrival at their final
destination in unparalleled comfort and style.
-- Extension of revolving credit facility. The company ended the quarter
with approximately $272 million of total liquidity, comprised of
approximately $171.8 million of cash and cash equivalents and a $100
million undrawn revolving credit facility. The company recently reached
an agreement with Delta to extend the $100 million revolving credit
facility to remain available through September 20, 2026.
-- Definitive agreement with Gogo to provide high-speed satellite Wi-Fi. As
part of its fleet modernization strategy, last October the company
announced that its new fleet would be outfitted with state-of-the-art
satellite WiFi. The company recently executed a definitive agreement with
Gogo to install their Galileo HDX satellite Wi-Fi systems in Wheels Up
aircraft. Installation is expected to begin this summer and ramp up
quickly through the remainder of the year.
-- Share repurchase program. On April 30, 2025, the company's Board of
Directors approved the repurchase of up to $10 million of shares of the
company's common stock from time to time through open market repurchases
or other privately negotiated transactions.
Financial and Operating Highlights(1)
Three Months Ended March 31,
--------
(in thousands,
except Live Flight
Legs, Private Jet
Gross Bookings per
Live Flight Leg,
Utility, Active Users
and percentages) 2025 2024 % Change
------------------- ------------------- --------
Total Gross Bookings $ 241,902 $ 224,674 8 %
Private Jet Gross
Bookings $ 205,293 $ 191,763 7 %
Live Flight Legs 10,895 11,754 (7) %
Private Jet Gross
Bookings per Live
Flight Leg $ 18,843 $ 16,315 15 %
Utility 38.1 30.9 23 %
Active Users(2) 6,166 10,218 (40) %
Completion Rate 97 % 98 % n/m
On-Time Performance
(D-60) 85 % 90 % n/m
Three Months Ended March 31,
--------------------------------- -------------- --------
(In thousands,
except
percentages) 2025 2024 $ Change % Change
--------------- ---------------- -------------- --------
Revenue $ 177,530 $ 197,101 $ (19,571) (10) %
Gross profit
(loss) $ (1,104) $ (16,554) $ 15,450 n/m
Adjusted
Contribution $ 22,441 $ 2,015 $ 20,426 n/m
Adjusted
Contribution 12
Margin 12.6 % 1.0 % n/a pp
Net loss $ (99,313) $ (97,393) $ (1,920) (2) %
Adjusted EBITDA $ (24,150) $ (49,229) $ 25,079 51 %
Adjusted
EBITDAR $ (18,792) $ (41,086) $ 22,294 54 %
Net cash used
in operating
activities $ (47,924) $ (73,794) $ 25,870 35 %
__________________
(1) For information regarding Wheels Up's use and definitions of our key
operating metrics and non-GAAP financial measures, see "Definitions of
Key Operating Metrics," "Definitions of Non-GAAP Financial Measures" and
"Reconciliations of Non-GAAP Financial Measures" sections herein.
(2) Active Users as of March 31, 2025 includes the impact of the company's
decision to discontinue Pay-As-You-Go and Connect membership options in
July 2024.
n/m Not meaningful
About Wheels Up
Wheels Up is a leading provider of on-demand private aviation in the U.S. with a large, diverse fleet and a global network of safety-vetted charter operators, all committed to safety and service. Customers access charter and membership programs and commercial travel benefits through a strategic partnership with Delta Air Lines. Wheels Up also provides freight, safety, security, and managed services to a range of clients, including individuals and government organizations. With the Wheels Up app and website, members can easily search, book, and fly.
For more information, visit www.wheelsup.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains certain "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements provide current expectations of future circumstances or events based on certain assumptions and include any statement, projection or forecast that does not directly relate to any historical or current fact. Forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside of the control of Wheels Up Experience Inc. ("Wheels Up", "we", "us", "our" or the "Company"), that could cause actual results to differ materially from the results discussed in the forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding: (i) Wheels Up's growth plans, the size, demand, competition in and growth potential of the markets for Wheels Up's service offerings and the degree of market adoption of Wheels Up's member programs, charter offerings and any future services it may offer; (ii) the potential impact of Wheels Up's cost reduction and operational
efficiency initiatives on its business and results of operations, including timing, magnitude and possible effects on liquidity levels and working capital; (iii) Wheels Up's fleet modernization strategy first announced in October 2024, its ability to execute such strategy on the timeline that it currently anticipates and the expected commercial, financial and operational impacts to Wheels Up; (iv) Wheels Up's liquidity, future cash flows and certain restrictions related to its indebtedness obligations, as well as its ability to perform under its contractual and indebtedness obligations; (v) Wheels Up's ability to achieve its financial goals in the future pursuant to the most recent schedule that it has announced; (vi) the potential impacts or benefits from pursuing strategic actions involving Wheels Up or its subsidiaries or affiliates, including, among others, acquisitions and divestitures, new debt or equity financings, refinancings of existing indebtedness, or commercial partnerships or arrangements; (vii) the availability or success of other options that the Company may undertake that are intended to cure compliance with the New York Stock Exchange's continued listing standards; (viii) the share repurchase program described in this press release; and (ix) the impacts of general economic and geopolitical conditions on Wheels Up's business and the aviation industry, including due to, among others, fluctuations in interest rates, inflation, foreign currencies, taxes, tariffs and trade policies, and consumer and business spending decisions. The words "anticipate," "believe," "can," "continue," "could," "estimate," "expect, " "future," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "strive," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that statement is not forward-looking. We have identified certain known material risk factors applicable to Wheels Up in our Annual Report on Form 10-K for the year ended December 31, 2024 filed with the U.S. Securities and Exchange Commission ("SEC") on March 11, 2025 and our other filings with the SEC. It is not always possible for us to predict how new risks and uncertainties that arise from time to time may affect us. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Except as required by law, we do not intend to update any of these forward-looking statements after the date of this press release.
Use of Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures, such as Adjusted EBITDA, Adjusted EBITDAR, Adjusted Contribution and Adjusted Contribution Margin. These non-GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and should not be considered as an alternative to Revenue or any component thereof, Net income (loss), Operating income (loss) or any other performance measures derived in accordance with GAAP. Definitions and reconciliations of non-GAAP financial measures to their most comparable GAAP counterparts are included in the sections titled "Definitions of Non-GAAP Financial Measures" and "Reconciliations of Non-GAAP Financial Measures," respectively, in this press release. Wheels Up believes that these non-GAAP financial measures provide useful supplemental information to investors about Wheels Up. However, there are certain limitations related to the use of these non-GAAP financial measures and their nearest GAAP measures, including that they exclude significant expenses that are required to be recorded in Wheels Up's financial measures under GAAP. Other companies may calculate non-GAAP financial measures differently, or may use other measures to calculate their financial performance, and therefore, Wheels Up's non-GAAP financial measures may not be directly comparable to similarly titled measures of other companies. Additionally, to the extent that forward-looking non-GAAP financial measures are provided, they are presented on a non-GAAP basis without reconciliations of such forward-looking non-GAAP financial measures due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations.
For more information on these non-GAAP financial measures, see the sections titled "Definitions of Non-GAAP Financial Measures" and "Reconciliations of Non-GAAP Financial Measures" included in this press release.
Contacts
Investors:
ir@wheelsup.com
Media:
press@wheelsup.com
WHEELS UP EXPERIENCE INC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands except share and per share data)
Three Months Ended March 31,
2025 2024
--------------------- ---------------------
Revenue $ 177,530 $ 197,101
Costs and expenses:
Cost of revenue (exclusive of
items shown separately
below) 158,424 198,260
Technology and development 10,524 11,081
Sales and marketing 22,161 21,437
General and administrative 56,817 36,237
Depreciation and amortization 20,210 15,395
Gain on sale of aircraft held
for sale (6,551) (2,724)
(Gain) loss on disposal of
assets, net (3,289) 1,963
Total costs and expenses 258,296 281,649
--------------------- ---------------------
Loss from operations (80,766) (84,548)
Other income (expense)
Gain on divestiture -- 3,403
Loss on extinguishment of
debt (38) (1,706)
Change in fair value of
warrant liability -- (28)
Interest income 1,148 56
Interest expense (19,880) (14,555)
Other income (expense), net 301 (129)
--------------------- ---------------------
Total other income
(expense) (18,469) (12,959)
--------------------- ---------------------
Loss before income taxes (99,235) (97,507)
Income tax benefit (expense) (78) 114
Net loss (99,313) (97,393)
Less: Net loss attributable
to non-controlling interests -- --
--------------------- ---------------------
Net loss attributable to
Wheels Up Experience Inc. $ (99,313) $ (97,393)
===================== =====================
Net loss per share of Class A
common stock:
Basic and diluted $ (0.14) $ (0.14)
Weighted-average shares of
Class A common stock
outstanding:
Basic and diluted 698,270,154 697,983,030
===================== =====================
WHEELS UP EXPERIENCE INC
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands, except share data)
March 31, 2025 December 31, 2024
---------------------- -----------------------
ASSETS
Current assets:
Cash and cash equivalents $ 171,845 $ 216,426
Accounts receivable, net 41,797 32,316
Parts and supplies
inventories 12,723 12,177
Aircraft held for sale 24,767 35,663
Prepaid expenses 32,011 23,546
Other current assets 15,664 11,941
---------------------- -----------------------
Total current assets 298,807 332,069
Property and equipment, net 333,422 348,339
Operating lease
right-of-use assets 35,153 56,911
Goodwill 219,476 217,045
Intangible assets, net 92,056 96,904
Restricted cash 35,218 30,042
Other non-current assets 76,850 76,701
---------------------- -----------------------
Total assets $ 1,090,982 $ 1,158,011
====================== =======================
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of
long-term debt $ 31,658 $ 31,748
Accounts payable 37,872 29,977
Accrued expenses 84,895 89,484
Deferred revenue, current 758,231 749,432
Other current liabilities 12,748 16,643
---------------------- -----------------------
Total current
liabilities 925,404 917,284
Long-term debt, net 382,765 376,308
Operating lease
liabilities, non-current 53,076 50,810
Other non-current
liabilities 9,620 9,837
---------------------- -----------------------
Total liabilities 1,370,865 $ 1,354,239
Mezzanine equity:
Executive performance award $ 8,223 $ 5,881
---------------------- -----------------------
Total mezzanine equity 8,223 $ 5,881
---------------------- -----------------------
Equity:
Common Stock, $0.0001 par
value; 1,500,000,000
authorized; 699,304,283
and 698,342,097 issued
and 698,775,897 and
697,902,646 shares
outstanding as of March
31, 2025 and December 31,
2024, respectively $ 70 $ 70
Additional paid-in capital 1,931,900 1,921,581
Accumulated deficit (2,202,208) (2,102,895)
Accumulated other
comprehensive loss (9,556) (12,662)
Treasury stock, at cost,
528,386 and 439,451
shares, respectively (8,312) (8,203)
---------------------- -----------------------
Total Wheels Up
Experience Inc.
stockholders' equity (288,106) (202,109)
---------------------- -----------------------
Non-controlling interests -- --
---------------------- -----------------------
Total equity (288,106) (202,109)
---------------------- -----------------------
Total liabilities and
equity $ 1,090,982 $ 1,158,011
====================== =======================
WHEELS UP EXPERIENCE INC
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
Three Months Ended March 31,
-----------------------------------------------------
2025 2024
------------------------- --------------------------
Cash flows from
operating activities
Net loss $ (99,313) $ (97,393)
Adjustments to
reconcile net loss to
net cash used in
operating
activities:
Depreciation and
amortization 20,210 15,395
Equity-based
compensation 12,661 11,211
Payment in kind
interest 13,050 10,123
Amortization
(accretion) of
deferred financing
costs and debt
discount 1,893 (1,880)
Gain on sale of
aircraft held for
sale (4,975) (2,724)
(Gain) loss on
disposal of assets,
net (3,229) 1,963
Impairment of
right-of-use assets 20,218 --
Other 1,678 162
Changes in assets and
liabilities:
Accounts receivable (8,481) (5,952)
Other receivables (3,437) 2,113
Prepaid expenses (8,324) 12,215
Other current assets (262) (4,371)
Other non-current
assets 1,166 9,456
Accounts payable 7,760 13,093
Accrued expenses (6,005) (12,211)
Deferred revenue 7,917 (25,145)
Other assets and
liabilities (451) 151
------------------------- --------------------------
Net cash used in
operating
activities (47,924) (73,794)
------------------------- --------------------------
Cash flows from
investing
activities:
Purchases of
property and
equipment (14,704) (4,022)
Capitalized software
development costs (3,338) (3,540)
Purchase of aircraft
held for sale (3,800) (2,331)
Proceeds from sale
of aircraft held
for sale, net 33,005 25,988
Other 4,950 3,508
------------------------- --------------------------
Net cash provided by
investing
activities 16,113 19,603
------------------------- --------------------------
Cash flows from
financing
activities:
Purchase of shares
for treasury (109) (338)
Proceeds from
long-term debt 9,876 --
Repayments of
long-term debt (18,451) (23,976)
Payment of debt
issuance costs (2) --
------------------------- --------------------------
Net cash used in
financing
activities (8,686) (24,314)
------------------------- --------------------------
Effect of exchange
rate changes on
cash, cash
equivalents and
restricted cash 1,092 (1,030)
Net decrease in cash,
cash equivalents and
restricted cash (39,405) (79,535)
Cash, cash
equivalents and
restricted cash,
beginning of period 246,468 292,825
------------------------- --------------------------
Cash, cash
equivalents and
restricted cash, end
of period $ 207,063 $ 213,290
========================= ==========================
Definitions of Key Operating Metrics
Total Gross Bookings and Private Jet Gross Bookings. We define Total Gross Bookings as the total gross spend by our members and customers on all private jet flight services under our member programs and charter offerings, all group charter flights, which are charter flights with 15 or more passengers ("Group Charter Flights"), and all cargo flight services ("Cargo Services"). We believe Total Gross Bookings provides useful information about the scale of the overall global aviation solutions that we provide our members and customers.
We define Private Jet Gross Bookings as the total gross spend by our members and customers on all private jet flight services under our member programs and charter offerings (excluding Group Charter Flights and Cargo Services). We believe Private Jet Gross Bookings provides useful information about the aggregate amount our members and customers spend with Wheels Up versus our competitors.
For each of Total Gross Bookings and Private Jet Gross Bookings, the total gross spend by our members and customers is the amount invoiced to the member or customer and includes the cost of the flight and related services, such as catering, ground transportation, certain taxes, fees and surcharges. We use Total Gross Bookings and Private Jet Gross Bookings to provide useful information for historical period-to-period comparisons of our business and to identify trends, including relative to our competitors. Our calculation of Total Gross Bookings and Private Jet Gross Bookings may not be comparable to similarly titled measures reported by other companies.
In Wheels Up's Annual Report on Form 10-K for the year ended December 31, 2023 and Quarterly Reports on Form 10-Q for each of the three months ended March 31, 2024 and June 30, 2024, as well as certain other earnings materials furnished in connection therewith, "Total Private Jet Flight Transaction Value" and "Total Flight Transaction Value" were presented as non-GAAP financial measures, and "Total Private Jet Flight Transaction Value per Live Flight Leg" was presented as a key operating metric. To improve the clarity of our reports filed with the SEC and to use comparable terminology to other registrants, beginning with our Quarterly Report on Form 10-Q for the three months ended September 30, 2024, we relabeled "Total Private Jet Flight Transaction Value," "Total Flight Transaction Value" and "Total Private Jet Flight Transaction Value per Live Flight Leg" as Private Jet Gross Bookings, Total Gross Bookings and Private Jet Gross Bookings per Live Flight Leg, respectively. In addition, we now present Private Jet Gross Bookings and Total Gross Bookings as key operating metrics given their usage. We will no longer present Private Jet Charter FTV or Other Charter FTV, which were included in such past filings.
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