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Wheels Up Q1 2025 Earnings Report
Wheels Up reported a decrease in revenue and an increase in net loss for Q1 2025, driven by reduced membership and flight activity, partially offset by cost optimization efforts.
Key Takeaways
Wheels Up Experience Inc. experienced a challenging first quarter in 2025, with total revenue decreasing by 10% to $177.53 million and net loss increasing by 2% to $99.313 million compared to the same period last year. The decline was primarily due to a significant drop in membership revenue and a reduction in live flight legs, despite a focus on more profitable flying and cost reduction initiatives.
Total revenue decreased by 10% to $177.53 million in Q1 2025, down from $197.101 million in Q1 2024.
Net loss increased by 2% to $99.313 million in Q1 2025, compared to $97.393 million in Q1 2024.
Membership revenue saw a substantial 45% decrease, falling to $9.189 million from $16.854 million in the prior year.
Flight revenue decreased by 2% to $147.568 million, primarily due to a 7% reduction in Live Flight Legs, partially offset by a 5% increase in Revenue per Live Flight Leg.
Wheels Up
Wheels Up
Wheels Up Revenue by Segment
Revenue by Segment
Flight Revenue
CapyFin.comMembership Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Wheels Up expects to meet its liquidity needs for the next 12 months through a combination of cash, strategic asset dispositions, and borrowings under existing facilities, with potential for additional financing.
Positive Outlook
- The Company has $171.8 million in Cash and cash equivalents and $35.2 million in Restricted cash as of March 31, 2025.
- Delta's $100.0 million commitment under the Revolving Credit Facility remains available to be drawn through September 20, 2026.
- Strategic dispositions of non-core or underutilized assets are expected to contribute to liquidity.
- Proceeds from borrowings under the Revolving Equipment Notes will support future aircraft acquisitions.
- The Company may seek additional financing or refinancing transactions, including new debt or equity, to fund fleet modernization.
Challenges Ahead
- The Company had a working capital deficit of $626.6 million as of March 31, 2025.
- Net cash used in operating activities was $47.9 million for the three months ended March 31, 2025.
- The fleet modernization strategy is capital intensive and requires significant internal and external resources.
- There is no assurance that the Company will be able to execute its fleet modernization strategy on the anticipated timeline or realize expected benefits.
- The Company's ability to satisfy long-term liquidity needs depends on generating cash flows from operations and securing additional financing arrangements.
Revenue & Expenses
Visualization of income flow from segment revenue to net income