Wheels Up Experience (UP) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue stabilized at $194 million, flat sequentially but down 39% year-over-year, reflecting operational improvements and a strategic focus on profitable flying.

• Adjusted EBITDA loss reduced by nearly 50% sequentially to $20 million, with a net loss of $57.7 million, a 60% improvement from Q3 2023.

• Block sales increased over 85% year-over-year to $147 million, with strong traction in Delta Corporate Sales and group charter demand.

• Fleet modernization underway, including acquisition of 17 Embraer Phenom 300/300E aircraft and transition to Bombardier Challenger 300/350 series.

• Active Members declined 38% year-over-year to 6,699, reflecting a focus on profitable flying and regionalization.

Financial highlights

• Adjusted Contribution Margin reached 14.8% in Q3 2024, nearly double Q2 and the highest since going public.

• Gross margin improved to 7.5% in Q3 2024 from 1.5% in Q3 2023.

• Operating cash flow improved 44% sequentially and 94% year-over-year, with cash outflow reduced to $15 million.

• Cash and cash equivalents were $115.9 million as of September 30, 2024, with $32.9 million in restricted cash.

• Total liquidity plus reserve deposit at quarter-end was $236 million.

Outlook and guidance

• Expects continued sequential improvement in adjusted EBITDA in Q4, with positive full-year adjusted EBITDA targeted for 2025.

• Fleet modernization strategy to be implemented over the next three years, aiming for improved reliability, lower costs, and enhanced customer experience.

• Management continues to focus on cost optimization, network density, and profitable flying within its Primary Service Area.