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Sep 30, 2022
Wheels Up Q3 2022 Earnings Report
Wheels Up's Q3 2022 revenue increased by 39% year-over-year, reaching $420.4 million, driven by strong demand and the acquisition of Air Partner. However, the net loss also increased by $27.4 million, totaling $86.8 million.
Key Takeaways
Wheels Up reported record third-quarter revenue, up 39% year-over-year, driven by strong demand and the acquisition of Air Partner. The company is focused on achieving Adjusted EBITDA profitability in 2024 through cost reductions and streamlined operations.
Revenue increased 39% year-over-year to $420.4 million.
Active Members grew 12% year-over-year to 12,688.
Live Flight Legs increased 7% year-over-year to 21,025.
Net loss increased by $27.4 million year-over-year to a net loss of $86.8 million.
Wheels Up
Wheels Up
Wheels Up Revenue by Segment
Forward Guidance
Wheels Up is focused on delivering Adjusted EBITDA profitability in 2024 through cost reductions, a streamlined organizational structure, and accelerated digital transformation.
Positive Outlook
- Strengthened cash position through the issuance of $270 million of equipment notes.
- Program changes set to take effect on December 1st, expected to contribute to stronger Adjusted Contribution Margins in 2023.
- Plans to consolidate its Member Operations Center into a new facility in Atlanta.
- Continued focus on pricing and cost reductions.
- Improved operational performance to support Adjusted EBITDA profitability in 2024.
Challenges Ahead
- Uncertain macroeconomic environment.
- Increased net loss year-over-year.
- Adjusted EBITDA loss increased year-over-year.
- Decline in flight margins due to supply constraints and inflationary pressures.
- Investments in technology.
Revenue & Expenses
Visualization of income flow from segment revenue to net income