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Wheels Up Announces Record Second Quarter Revenue Up 49% Year-over-Year

Aug 31, 2022

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Wheels Up Experience Inc. announced financial results for the second quarter, which ended June 30, 2022.


Second Quarter 2022 Highlights



  • Revenue increased 49% year-over-year to $425.5 million

  • Strong demand with prepaid block sales up 187% year-over-year

  • Active Members grew 20% year-over-year to 12,667 in total

  • Live Flight Legs increased 19% year-over-year to 21,705 in total

  • Net loss increased by $63.8 million year-over-year to a net loss of $92.8 million

  • Adjusted EBITDA decreased by $38.4 million year-over-year to a loss of $46.9 million


"Our strong market position and iconic brand helped drive record revenue in the second quarter, and another quarter of growth in prepaid blocks speaks both to the steadfast loyalty of our member base, and the continued consumer demand for private aviation," said Chairman and CEO Kenny Dichter. "Air Partner is off to a strong start in its first quarter as part of our company, and we are already seeing the benefits of having a global footprint. Our team is moving quickly to enhance our technology-enabled marketplace platform which we expect will provide us with a significant competitive advantage."


"We continue to invest in technology and other areas of the business to drive improvement in our execution and operational capabilities," said Todd Smith, CFO.  "We remain focused on delivering great service for our members and customers during our journey towards significant and sustainable profitability for our shareholders."


Recent Initiatives



  • Entire Wheels Up controlled fleet now managed through UP FMS that aggregates the data for all flight operations under one consolidated dashboard. This platform sets the company on the path to fully automate aircraft and crew scheduling and more effectively and efficiently manage daily operations and shape demand.

  • Continuing to make progress to streamline operations. Combined with the previously communicated efforts around certificate consolidation, these efforts will enhance the company's operational effectiveness and efficiency as well as customer service and are part of the plan to achieve positive Adjusted EBITDA in 2024.

  • Exceeded pilot hiring targets. The company is continuing to make progress on pilot training and investing in maintenance hiring and capabilities to improve overall fleet availability.


Financial and Operating Highlights
























































































































































 

As of June 30,


    
 

2022


  

2021


  

% Change

Active Members(1)

12,667


  

10,515


  

20 %
           
 

Three Months Ended June 30,


    

(In thousands, except percentages, Active Users,  Live Flight Legs and
Flight revenue per Live Flight Leg)

2022


  

2021


  

% Change

Active Users(1)

13,119


  

11,281


  

16 %

Live Flight Legs(1)

21,705


  

18,234


  

19 %

Flight revenue per Live Flight Leg

$             13,088


  

$             11,663


  

12 %

Revenue

$           425,512


  

$           285,580


  

49 %

Net loss

$            (92,760)


  

$            (28,954)


  

(220) %

Adjusted EBITDA(1)

$            (46,889)


  

$              (8,480)


  

(453) %
           
 

Six Months Ended June 30,


    

(In thousands, except percentages)

2022


  

2021


  

% Change

Revenue

$           751,147


  

$           547,237


  

37 %

Net loss

$          (181,800)


  

$            (61,167)


  

(197) %

Adjusted EBITDA(1)

$            (96,317)


  

$            (17,141)


  

(462) %
 

(1) For information regarding Wheels Up's use and definition of this measure see "Definitions of Key Operating Metrics and Non-GAAP
Financial Measures" and "Reconciliations of Non-GAAP Financial Measures" sections herein.




For the second quarter:



  • Active Members grew 20% year-over-year to 12,667 driven by strong new member sales and existing membership retention.

  • Active Users grew 16% to 13,119 year-over-year primarily driven by the growth in Active Members.

  • Live Flight Legs increased by 19% year-over-year to 21,705 with strong flight demand across all cabin classes driven by the growth in Active Members and the acquisition of Air Partner.

  • Flight revenue per Live Flight Leg was $13,088, up 12% year-over-year, and up 16% year-over-year excluding Air Partner. The increase was the result of the introduction of fuel surcharges, higher pricing, and a higher mix of larger cabin flying.

  • Revenue increased 49% year-over-year driven by strong flight demand.

  • Net loss increased by $63.8 million due to several factors, including a decrease in Adjusted Contribution Margin caused by supply constraints and increased operating costs, as well as an increase in equity-based compensation expense, including a broad-based equity grant to the Wheels Up employee pilots.

  • Adjusted EBITDA loss of $46.9 million decreased $38.4 million year-over-year, due primarily to lower Adjusted Contribution Margin.


 Webcast and Conference Call Information


A conference call with management will be held today at 4:30 pm ET. To access a live webcast of the conference call and any supporting materials please visit the Wheels Up investor site (www.wheelsup.com/investors). The site will include an archive of this webcast and supporting materials as well as any announcements regarding the Company's financial performance, including U.S. Securities and Exchange Commission (the "SEC") filings, investor events, press and earnings releases.


About Wheels Up


Wheels Up is the leading provider of on-demand private aviation in the U.S. and one of the largest private aviation companies in the world. Wheels Up offers a complete global aviation solution with a large, modern and diverse fleet, backed by an uncompromising commitment to safety and service. Customers can access membership programs, charter and aircraft management services—as well as unique commercial travel benefits through a strategic partnership with Delta Air Lines Inc. The Wheels Up Services brands also offer freight, safety & security solutions and managed services to individuals, industry, government and civil organizations.


Wheels Up is guided by the mission to connect flyers to private aircraft—and one another—and deliver exceptional, personalized experiences. Powered by a global private aviation marketplace connecting its growing base of 12,000+ members and customers to a network of more than 1,500 safety-vetted and verified private aircraft, Wheels Up is widening the aperture of private travel for millions of consumers globally. With the Wheels Up mobile app, members and customers have the digital convenience to search, book and fly. Wheels Up is committed to aligning with philanthropic organizations that matter most to our company, members, customers, families and friends. Through the Wheels Up Cares program, a Wheels Up Beechcraft King Air 350i aircraft is custom-designed to represent the established cause and is a flying symbol of each charity's mission. Headquartered in New York City, Wheels Up has office locations in 25 cities and towns across three continents and a workforce of nearly 2,700 employees.


To learn more about Wheels Up, go to wheelsup.com.

URL : http://wheelsup.com.

Contact Information:

wheelsup.com.

Tags: United States, English