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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
Revenue by Segment
Flight Revenue
CapyFin.comMembership Revenue
CapyFin.comOther Revenue
CapyFin.com 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