Wheels Up Experience (UP) investor relations material

Transformation and strategic direction

• Undergoing a major transformation to integrate private and commercial aviation, leveraging a partnership with Delta to create seamless travel solutions for customers.

• Transitioning from a membership-centric, turboprop-focused model to a broader, more flexible aviation solutions provider.

• Delta invested in late 2023, making Wheels Up an extension of its premium strategy and holding just under 40% ownership.

• The partnership enables access to Delta’s 45,000 corporate clients and 20 million SkyMiles members, targeting even a small percentage as a significant market.

• Aiming to integrate digital platforms for unified booking and customer experience across commercial and private flights.

Operational improvements and fleet modernization

• Relocated headquarters to Atlanta to focus on operational excellence, mirroring Delta’s operations center.

• Replacing four jet types with two (Phenom 300 and Challenger 300/350) to drive efficiency, reliability, and cost savings.

• Acquired Grandview Aviation to accelerate fleet transition and launched the Signature Membership for nationwide access.

• Operational KPIs show 98-99% completion rates, high 80s to 90% on-time performance, and increasing days with zero cancellations.

• Utilization up 30%, running 25% fewer aircraft, and contribution margins improved from low single digits to mid-high teens.

Financial performance and cost management

• Revenue decline post-COVID has stabilized, with quarter-over-quarter revenues now flat and trending upward.

• EBITDA losses reduced from $48-50M per quarter to single digits, with further improvement expected as new fleet grows.

• Targeting $50M in cost savings through operational efficiencies, fleet simplification, and integration of global charter and membership businesses.

• Operating a balanced mix of owned fleet and asset-light charter business, each now representing about 50% of gross bookings.