Wheels Up Reports $177.5 Million Revenue in Q1 2025, 10% Decline Year-Over-Year

Wheels Up Experience Inc. reported a revenue of $177.5 million for the first quarter of 2025, a decrease of 10% compared to $197.1 million in the same period last year. The decline in revenue was primarily attributed to a significant drop in membership revenue, which fell by 45% to $9.2 million, driven by a 56% reduction in membership counts. Flight revenue also saw a slight decrease of 2%, totaling $147.6 million, influenced by a 7% reduction in live flight legs, although this was partially offset by a 5% increase in flight revenue per leg. Other revenue decreased by 29% to $20.8 million, largely due to the absence of a $6 million government contract recognized in the previous year.

The company's total costs and expenses decreased by 8% to $258.3 million, with notable reductions in cost of revenue, which fell by 20% to $158.4 million. This reduction was primarily due to decreased headcount and associated compensation costs, as well as lower travel expenses. General and administrative expenses surged by 57% to $56.8 million, largely due to a $20.2 million non-cash impairment charge related to vacating a corporate office space. Despite these challenges, Wheels Up reported a loss from operations of $80.8 million, an improvement from the $84.5 million loss in the prior year.

In terms of operational metrics, Wheels Up reported a total of 10,895 live flight legs, a decrease of 7% year-over-year. The company also noted a significant drop in active users, which fell by 40% to 6,166, reflecting the impact of discontinuing certain membership options. The utility of the fleet improved, with a utility rate of 38.1%, up from 30.9% in the previous year, indicating better efficiency in aircraft usage.

Strategically, Wheels Up is undergoing a fleet modernization initiative, transitioning from four private jet models to two, with the aim of enhancing operational efficiency and service quality. The company has begun operating Embraer Phenom 300 series aircraft and has acquired Bombardier Challenger 300 series aircraft. Additionally, Wheels Up's Board of Directors approved a $10 million share repurchase program, signaling confidence in the company's long-term value. The company expects to meet its liquidity needs through a combination of cash reserves, operational cash flows, and potential borrowings under its revolving credit facility, which remains available until September 2026.

Looking ahead, Wheels Up anticipates that its strategic initiatives, including the fleet modernization and cost reduction measures, will position the company for improved performance in the coming quarters. However, the company remains cautious about market conditions and the ongoing challenges in the aviation industry, which could impact its financial outlook.