Wheels Up Experience (UP) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $196 million, down 41% year-over-year, primarily due to divestitures, regionalization, and a focus on profitable flying, with active members and live flight legs each declining 29%.

• Net loss improved to $97 million from $160.6 million in Q2 2023, reflecting cost reductions, operational efficiencies, and the absence of a prior-year goodwill impairment.

• Adjusted EBITDA loss improved to $37.4 million from $40.3 million year-over-year, and Adjusted Contribution Margin rose to 7.8% from 5.4% in Q2 2023.

• Strategic initiatives included product enhancements, deeper Delta Air Lines integration, digital upgrades, and operational streamlining.

• Operational performance remained strong, with a 99% completion rate and 87% on-time performance.

Financial highlights

• Q2 2024 revenue: $196 million, flat sequentially but down 41% year-over-year; Adjusted Contribution Margin: 7.8%, up from 1% in Q1 and 5.4% in Q2 2023.

• Net loss for Q2 2024 was $97 million, flat sequentially and improved from prior year; Adjusted EBITDA loss narrowed to $37.4 million from $49.2 million in Q1.

• Total liquidity plus reserve deposits stood at $261 million at quarter-end, with cash and cash equivalents at $141.5 million and access to a $100 million undrawn revolver.

• Operating cash outflow down 63% from Q1 and 87% year-over-year; cash used in operations for H1 2024 was $100.8 million.

• Total debt as of June 30, 2024: $239.8 million; interest expense rose to $16.7 million in Q2 2024.

Outlook and guidance

• Management expects to meet liquidity needs for the next 12 months through cash, operations, asset sales, and the revolving credit facility.

• Focus remains on profitable flying, cost reduction, operational streamlining, and further margin improvement, with positive adjusted EBITDA targeted later this year.

• Plans to modernize the fleet and drive value through product and digital enhancements, leveraging the Delta partnership.