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Jun 30
Wheels Up Q2 2025 Earnings Report
Wheels Up reported a decrease in revenue but showed significant improvements in gross profit and reduced net loss, driven by a focus on more profitable flying and fleet modernization.
Key Takeaways
Wheels Up announced its second quarter 2025 results, with revenue decreasing by 3% year-over-year to $189.6 million. Despite the revenue dip, the company significantly improved its gross profit to $2.2 million, a $13.2 million improvement from the previous year's loss. Net loss also improved by 15% to $82.3 million, or $(0.12) per share, reflecting the company's strategic shift towards more profitable operations and fleet modernization.
Revenue for Q2 2025 was $189.6 million, a 3% decrease year-over-year.
Gross profit improved significantly to $2.2 million, a $13.2 million increase compared to a loss in the prior year.
Net loss decreased by 15% year-over-year to $82.3 million, or $(0.12) per share.
Adjusted EBITDA loss improved by 22% to $29.0 million, indicating better operational efficiency.
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 is implementing initiatives to drive approximately $50 million in annual cash cost savings through efficiency, productivity, and overhead cost reductions associated with its fleet modernization plan and other actions. The full financial impact of these actions is expected to begin in the back half of 2026.
Positive Outlook
- Expected annual cash cost savings of approximately $50 million from efficiency, productivity, and overhead cost reductions.
- Continued progress on fleet modernization, with premium Phenom and Challenger jets comprising approximately 20% of the controlled fleet.
- Anticipated addition of three Challenger 300 aircraft into revenue service in Q3 2025.
- Strong growth in Delta partnership, with corporate membership fund sales increasing more than 25% year-over-year in Q2.
- Corporate membership fund mix increased to 45% for the quarter, up 4 points sequentially.
Challenges Ahead
- Full financial impact of cost savings initiatives not expected until the back half of 2026.
- Sold or completed lease returns on 31 legacy aircraft during the first half of 2025, potentially impacting fleet size in the short term.
- Retired the Citation CJ3 from revenue service as part of streamlining its fleet.
- No specific forward guidance on revenue or profitability metrics provided for upcoming quarters.
- Ongoing need to manage the transition and integration expenses associated with fleet modernization and operational changes.
Revenue & Expenses
Visualization of income flow from segment revenue to net income