Private aviation provider Wheels Up on Thursday reported second-quarter revenue of $196.3 million, down from the $335 million a year prior. It also had a net loss of $97 million, which was less than the $161 million loss posted in Q2 2023 and nearly even with its first-quarter loss.
"We have seen financial improvements over the last quarter, an indication that our initiatives are working and an encouraging sign of our ability to achieve profitability and financial stability in the quarter," Wheels Up CEO George Mattson said on a Thursday morning earnings call. "Our Q2 revenue has stabilized sequentially following a period of restructuring, revamping our commercial offering and focusing on more profitable flying."
Wheels Up second-quarter active members declined 29 percent year over year to nearly 8,300, with active users declining 20 percent to nearly 10,000. The number of live flight legs also declined 29 percent compared with Q2 2023 to nearly 12,900.
The company's total private jet flight transaction value was down 19 percent year over year to $216.8 million, while private jet charter FTV increased 35 percent to $113.2 million. Total charter FTV was up 16 percent to $161.7 million.
Prepaid blocks totaled $145 million for the quarter, up 27 percent from the first quarter and up 50 percent year over year, Wheels Up CFO Todd Smith said. "The strength and prepaid bocks sales reflects an increasing appreciation by customers of our improved service metrics and our global capabilities, as well as the continued strength of our Delta relationship related to corporate strength."
"We're seeing members return to Wheels Up who have left over the last couple of years, and we are bringing on new corporate customers from our growing pipeline of prospects through our corporate sales initiative with Delta," Mattson said.
Mattson added that the "next phase of our customer experience journey" is for a fleet modernization. "Our intention is to invest in and modernize our fleet across the portfolio, including the introduction of larger, newer and more capable aircraft," he said, noting that more details would follow later in the year. "Through the combination of our operational improvements, our structural cost improvements and our commercial momentum, we are earning the right to grow profitably."
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