Wheels Up Experience Inc. Reports $339.6M Net Loss for Fiscal Year 2024, Revenue Declines 36.8%

Wheels Up Experience Inc. reported a net loss of $339.6 million for the fiscal year ending December 31, 2024, a 30.3% improvement compared to the $487.4 million net loss in 2023. Revenue decreased by 36.8% year-over-year, falling from $1.25 billion in 2023 to $792.1 million in 2024. This decrease was primarily attributed to a 46% decline in active members (from 9,947 to 5,369) and a 22% reduction in live flight legs (from 64,481 to 50,116). The company cited its focus on profitable flying and the regionalization of its member programs as contributing factors to these declines.

Significant changes compared to the previous fiscal year included a 38.1% decrease in total costs and expenses, driven by reductions in cost of revenue, technology and development, and general and administrative expenses. These reductions were partially offset by increased interest expense and one-time charges related to inventory reserves and restructuring. The company also highlighted the completion of its fleet modernization strategy, which involved transitioning from four private jet models to two, and the acquisition of 17 Embraer Phenom 300 series aircraft. The company also completed the consolidation of its FAA operating certificates from five to two.

Strategic developments during the year included the realignment of its service offerings into Wheels Up Membership and Wheels Up Charter in June 2024, aimed at simplifying the customer experience. The company also enhanced its partnership with Delta Air Lines, expanding benefits for members and customers. Operational changes included the opening of a new Member Operations Center in Atlanta and the rationalization of its maintenance facility footprint. The company also noted a decrease in its employee headcount from the prior year, primarily due to streamlining efforts.

Key operational developments showed a decrease in active users from 10,744 to 7,286 during the three months ended December 31, 2024. Despite the decrease in live flight legs, the private jet gross bookings per live flight leg increased by 2% year-over-year. The company's aircraft utility increased by 33% year-over-year, indicating improved operational efficiency. As of December 31, 2024, Wheels Up and its subsidiaries employed 1,866 people, including approximately 475 pilots.

Looking ahead, Wheels Up anticipates continued variability in its operating results during its period of transition. The company expects its fleet modernization strategy, along with its revised member programs and charter offerings, to drive future revenue growth. The company also plans to continue implementing cost reduction and operational efficiency initiatives to achieve profitability. The company acknowledged several significant risks, including competition, demand fluctuations, and the potential for further impairment charges.