‘Realigning’ top priority, says Wheels Up
On-demand private aviation services provider Wheels Up said realigning its product, fleet and operations to better meet customer demand continues to remain top priority as they posted a modest decline of 3% year-over-year in second quarter revenue at $189.6m.
“This focused execution has strengthened our financial position and laid a strong foundation for sustained, profitable growth,” said Wheels Up chief executive officer George Mattson.
Wheels Up, which continues to diversify its fleet, saw its total gross bookings at $261.9m, consistent year over year from $265m in the same period of last year. Utility rates for the second quarter were 41.1 hours, up 10% year-over-year. Utility for the Embraer Phenom 300 series and Bombardier Challenger 300 series aircraft were 49 and 54 hours, respectively.
Wheels Up added the Challenger aircraft to its fleet in first quarter of 2025 as part of its fleet modernisation strategy. The company has evolved its fleet composition from 65% legacy jet and 35% turboprop at the end of 2023 to 44% premium jets, 34% legacy jets and 22% turboprop.
The company also retired its last Citation CJ3 from revenue service in the second quarter.
“I’m incredibly proud of how our team has continued to deliver exceptional service and operational excellence, even as we invest in modernizing and simplifying our fleet,” said Mattson.
The on-demand operator has undergone a transformational shift in operations with a focus on profitability. Its adjusted contribution at the end of second quarter jumped 51%YoY to $23.1m from $15.3m last year. This translated into adjusted contribution margin of 12.2% – an expansion of 460 basis points.
Net loss of the second quarter saw a 15%YoY improvement to $82.3m from $96.9m in the same period of last year as it continues to keep a tight grip on operating costs. Almost all of the operating expenses including sales, marketing, administration and technology witnessed declines during the quarter under review.
On the liquidity front, the company ended the second quarter with $200m – including $107 of cash and cash equivalents and $100m undrawn revolving credit facility. The company expects another $50m in annual cash cost savings through efficiency and overhead cost reductions trickling through from the fleet modernization plan over the next few quarters.
Six-month results show consolidation on track
Wheels Up revenue in the first half of 2025 declined 7%YoY to $367m from $393m as live flight legs fell by a similar quantum to 22,866.
In the first half, total gross bookings went up 3%YoY to $503.8m as private jet gross bookings per live flight leg improved to $18,089 from $16,604 last year.
Losses from operations improved 14% to $104m with net loss clocking in at $181.6m.
