Wheels Up Reports Record Revenues, Large Losses in Q1

Private aviation company Wheels Up posted a 24 percent year-over-year revenue jump, to $325.6 million, in the first quarter, but it came at the price of a net loss of $89 million, an increase of $56.8 million year-over-year. Adjusted earnings before interest, taxes, depreciation, and amortization decreased by $40.8 million year-over-year, to a $49.4 million loss. Meanwhile, the company's number of active members rose 26 percent year-over-year, and live flight legs climbed 15 percent, to 17,626. 

“Over the past several months, we have made meaningful improvements to address operational challenges and expect to realize the benefit in the coming quarters," said Wheels Up chairman and CEO Kenny Dichter. "We are ahead of plan on pilot hiring and continue to add to our maintenance capabilities while also delivering on several key strategic and technology initiatives.”  

Wheels Up expects forward financial performance to improve with the implementation of fuel surcharges and additional capped rate price increases. It also said it undertook a variety of recent growth initiatives, including the acquisition of Air Partner on April 1, to provide Wheels Up with “an attractive asset-light platform to extend its offerings globally for its customers who are increasingly looking to travel around the world.”

The company further said that converting the majority of its owned and operated fleet to the UP fleet management system will allow it to better automate aircraft positioning and crew scheduling. Additionally, it is launching an updated Wheels Up mobile app to “introduce new capabilities that enhance the customer experience at scale.”