Wheels Up holds steady in Q2 amid cost cuts

Wheels Up reported flat revenue of $196m for the second quarter of 2024. Despite relatively unchanged top-line figures, the company’s results showed progress in cost management and operational efficiency.

The private aviation company saw an 8% increase in flight service revenue to $163.6m, offset by declines in other areas such as membership and aircraft management.

“Since the strategic investment, we have made strong progress on a number of key fronts. Revenues have stabilised after a long period of time as we continue to make changes across the board,” said George Mattson, the company’s CEO while talking to Corporate Jet Investor.

CEO George Mattson emphasised the company’s focus on rebuilding sales and improving overall performance.

“We made significant progress over the past quarter to improve our business for a sustainable future,” said Todd Smith, Wheels Up CFO.

“We are continuing to optimise our cost structure and fleet to focus on profitability. With improving liquidity in the fourth quarter and our partnership with Delta, we believe we are well positioned to continue to invest in our business for the long term.”

Operational losses narrowed from $82.6m in Q1 to $79m in Q2, driven by belt tightening in the form of reduced general and administrative expenses. The company’s contribution margin also improved significantly, reaching 7.8% compared to 1% in the previous quarter.

Wheels Up’s cash burn decreased substantially to $27m in Q2 from $73.8m in Q1, with cash reserves standing at $141m as of June 30.

The company expressed confidence in its ability to invest in future growth, supported by improved liquidity and its partnership with Delta.