Private on-demand aviation company Wheels Up announced this month financial results for the second quarter, which ended June 30, 2022.
Notes from the year-over-year results include:
- 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
Since its creation in 2013, Wheels Up has focused on growth and acquisitions, which included a $1.4 billion dollar deal for up to 105 King Air 350i from Textron Aviation. A shift in focus to the bottom line was noted in the results with the company announcing a plan to achieve positive adjusted EBITDA in 2024.
"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."
(Custom King Air 350i supporting American Heart Month. Image by Wheels Up)
"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 by the company included managing the entire fleet through UP FMS; a service that aggregates the data for all flight operations under one dash board. This allows for automated aircraft and crew scheduling to more effectively manage daily operations and shape demand. Wheels Up also managed to exceed pilot hiring targets and placed a renewed emphasis on training. Along with investing in maintenance hiring and capabilities, this has helped improve overall fleet availability.
The Wheels Up fleet now consists of over 1,500 safety-vetted and verified private aircraft, many of which are King Air. The company also sponsors the Wheels Up Cares program; which contains custom-designed King Air 350i for numerous different designated charities. The company website is www.wheelsup.com.