Summary of Wheels Up Experience (UP) 2025 Conference Company Overview - **Company**: Wheels Up Experience (UP) - **Industry**: Private Aviation - **Position**: Fourth largest private aviation company, largest on-demand provider of private aviation [3][4] Core Insights and Arguments - **Market Dynamics**: Approximately 70% of private aviation aircraft are wholly owned, with fractional ownership being the dominant model [4] - **Investment and Strategy**: Delta Airlines made a significant investment in Wheels Up in September 2023, aiming to integrate commercial and private aviation offerings [5][6] - **Customer Accessibility**: Wheels Up aims to lower barriers for accessing private aviation, with a focus on customer-centric solutions [7][9] - **Membership Model**: Offers two main options: a membership program with guaranteed availability and a global charter service [9][10] - **International Travel**: The integration with Delta allows for seamless travel options, including hybrid solutions for international destinations [12][14] Operational Improvements - **Customer Base**: Wheels Up has around 10,000 customers, with 5,000 active members and charter customers [21] - **Booking Flexibility**: The booking curve is more flexible compared to commercial airlines, with guaranteed availability 48 hours in advance [25][26] - **Operational Excellence**: Focus on improving operational metrics, achieving a completion rate of approximately 98-99% and on-time performance in the high 80s to 90% [32][34] Fleet Modernization - **Fleet Transition**: Transitioning from a legacy fleet to a modernized fleet, replacing older aircraft with premium models like the Embraer Phenom 300 and Bombardier Challenger 350 [39][40] - **Market Positioning**: The fleet modernization aims to reposition Wheels Up from a value to a premium market offering [42][44] - **Cost Efficiency**: Acquiring mid-cycle aircraft to optimize costs and pass savings to customers [50][51] Financial Performance - **Contribution Margin Improvement**: Expanded contribution margin by 19 percentage points, reduced EBITDA loss significantly [53][71] - **Future Profitability**: The fleet transition is expected to drive significant profitability improvements [72] Customer Experience Focus - **Total Experience**: Emphasis on enhancing all aspects of customer interaction, from booking to in-flight experience [55][56] - **Pilot Sourcing**: Diverse sourcing of pilots from private aviation, general aviation, and retired commercial pilots [57][59] Long-term Vision - **Strategic Partnership with Delta**: Aiming for a seamless integration of services between Wheels Up and Delta, enhancing customer travel options [60][62] - **Market Transformation**: Positioning Wheels Up as a transformative player in private aviation, attracting new customers and shifting market dynamics [70][72] Additional Insights - **Technological Upgrades**: Implementation of satellite Wi-Fi on aircraft to enhance connectivity and productivity for passengers [66] - **Addressable Market**: Significant potential customer base identified within Delta's SkyMiles members, with a focus on corporate clients [22][24] This summary encapsulates the key points discussed during the Wheels Up Experience conference, highlighting the company's strategic direction, operational improvements, and market positioning within the private aviation industry.

Company Overview - Wheels Up Experience Inc. is a leading provider of on-demand private aviation in the U.S. with a large and diverse fleet [3] - The company has a global network of safety-vetted charter operators committed to safety and service [3] - Wheels Up offers charter and membership programs along with commercial travel benefits through a strategic partnership with Delta Air Lines [3] Upcoming Event - The CEO of Wheels Up, George Mattson, will present at the Bank of America Industrials, Transportation, and Airlines Key Leaders Conference in New York on May 15, 2025, at 8:45 am ET [1] - The event will be webcast live and accessible via the Investor Relations website [1][2] Services Offered - In addition to private aviation, Wheels Up provides freight, safety, security, and managed services to various clients, including individuals and government organizations [3] - The Wheels Up app and website allow members to easily search, book, and fly [3]

[PART I. Financial Information](index=5&type=section&id=PART%20I.%20Financial%20Information) [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) The company presents its unaudited condensed consolidated financial statements for the first quarter of 2025 [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $1.09 billion while the total equity deficit widened to $(288.1) million in Q1 2025 Condensed Consolidated Balance Sheet Summary (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $171,845 | $216,426 | | Total current assets | $298,807 | $332,069 | | Total assets | $1,090,982 | $1,158,011 | | **Liabilities & Equity** | | | | Deferred revenue, current | $758,231 | $749,432 | | Total current liabilities | $925,404 | $917,284 | | Total liabilities | $1,370,865 | $1,354,239 | | Total equity | $(288,106) | $(202,109) | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 revenue decreased to $177.5 million, with the net loss slightly increasing to $99.3 million Q1 2025 vs Q1 2024 Statement of Operations (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $177,530 | $197,101 | | Cost of revenue | $158,424 | $198,260 | | Loss from operations | $(80,766) | $(84,548) | | Net loss | $(99,313) | $(97,393) | | Net loss per share | $(0.14) | $(0.14) | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities improved to $47.9 million, resulting in a net cash decrease of $39.4 million Q1 2025 vs Q1 2024 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(47,924) | $(73,794) | | Net cash provided by investing activities | $16,113 | $19,603 | | Net cash used in financing activities | $(8,686) | $(24,314) | | **Net decrease in cash** | **$(39,405)** | **$(79,535)** | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, revenue disaggregation, impairment charges, and legal contingencies Disaggregation of Revenue (in thousands) | Revenue Type | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Flights, net | $147,568 | $150,929 | | Memberships | $9,189 | $16,854 | | Other | $20,773 | $29,318 | | **Total Revenue** | **$177,530** | **$197,101** | - In Q1 2025, the company recorded a non-cash impairment charge of **$20.2 million** related to the right-of-use asset for a vacated corporate office space in New York City as part of its cost reduction initiatives[82](index=82&type=chunk) - The company is engaged in litigation with flyExclusive, Inc (FE) over the alleged wrongful termination of a Fleet Guaranteed Revenue Program Agreement, seeking compensatory damages including the return of material deposits[123](index=123&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes Q1 2025 performance, highlighting lower revenue but improved cost efficiency and margins [Overview of Our Business and Fleet Modernization](index=37&type=section&id=Overview%20of%20Our%20Business%20and%20Fleet%20Modernization) The company is executing a fleet modernization strategy to improve efficiency by consolidating to two jet models Controlled Aircraft Fleet as of March 31, 2025 | Category | Owned | Leased | Total | | :--- | :--- | :--- | :--- | | Premium Jets | 18 | 3 | 21 | | Large Jets | — | 2 | 2 | | Super-Midsize Jets | — | 24 | 24 | | Midsize Jets | 12 | 4 | 16 | | Light Jets | 25 | 5 | 30 | | **Total Jets** | **55** | **38** | **93** | | Turboprops | 41 | — | 41 | | **Total Aircraft** | **96** | **38** | **134** | [Non-GAAP Financial Measures](index=39&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP metrics show an improved Adjusted EBITDA loss of $(24.2) million and a significant increase in Adjusted Contribution Margin to 12.6% Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss | $(99,313) | $(97,393) | | Adjustments | $75,163 | $48,164 | | **Adjusted EBITDA** | **$(24,150)** | **$(49,229)** | Reconciliation of Gross Profit (Loss) to Adjusted Contribution (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Gross profit (loss) | $(1,104) | $(16,554) | | Adjustments | $23,545 | $18,569 | | **Adjusted Contribution** | **$22,441** | **$2,015** | | **Adjusted Contribution Margin** | **12.6%** | **1.0%** | [Key Operating Metrics](index=42&type=section&id=Key%20Operating%20Metrics) Total Gross Bookings increased by 8%, while Live Flight Legs and Active Users declined by 7% and 40% respectively Key Operating Metrics Comparison | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Gross Bookings (in thousands) | $241,902 | $224,674 | 8% | | Live Flight Legs | 10,895 | 11,754 | (7)% | | Active Users | 6,166 | 10,218 | (40)% | [Results of Operations](index=47&type=section&id=Results%20of%20Operations) Q1 2025 revenue fell 10% due to lower membership and flight activity, while cost of revenue decreased 20% - Q1 2025 revenue decreased by **10% YoY**, driven by a **56% decrease in members** and a **7% reduction in Live Flight Legs**[201](index=201&type=chunk)[202](index=202&type=chunk)[203](index=203&type=chunk) - Cost of revenue decreased by **20% YoY**, primarily due to reduced headcount, lower travel expenses, and decreased flight activity, leading to an **1,160 basis point improvement in Adjusted Contribution Margin**[205](index=205&type=chunk)[206](index=206&type=chunk) [Liquidity and Capital Resources](index=50&type=section&id=Liquidity%20and%20Capital%20Resources) The company holds $171.8 million in cash and has access to an undrawn $100.0 million revolving credit facility from Delta - The company's principal sources of liquidity are financing activities and deferred revenue from membership fund sales, with cash and cash equivalents at **$171.8 million** as of March 31, 2025[214](index=214&type=chunk) - The company has access to a **$100.0 million revolving credit facility** from Delta, which was undrawn as of the report date and remains available through September 20, 2026[215](index=215&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=55&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) There were no material changes to the company's principal market risks from interest rates, fuel prices, and foreign currency - There have been no material changes to the market risks related to interest rates, aircraft fuel, and foreign currency exchange as described in the company's 2024 Annual Report[237](index=237&type=chunk) [Controls and Procedures](index=56&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls were not effective due to ongoing remediation of previously identified material weaknesses - Management concluded that disclosure controls and procedures were **not effective** as of March 31, 2025, due to ongoing remediation of material weaknesses in internal control over financial reporting[239](index=239&type=chunk) - The company has implemented and is continuing to execute on a remediation plan to address the identified control deficiencies, with a target completion before December 31, 2025[241](index=241&type=chunk)[242](index=242&type=chunk)[243](index=243&type=chunk) [PART II. Other Information](index=58&type=section&id=PART%20II.%20Other%20Information) [Legal Proceedings](index=58&type=section&id=Item%201.%20Legal%20Proceedings) The company is engaged in ongoing litigation against flyExclusive, Inc over a terminated fleet agreement - The company is vigorously pursuing a lawsuit against flyExclusive, Inc (FE) for wrongful termination of a fleet agreement and is seeking to recover outstanding deposits and other damages[248](index=248&type=chunk)[250](index=250&type=chunk) - The company notes that recovery of amounts from FE may be impacted by FE's financial condition, citing FE's reported net losses, working capital deficit, and potential need for additional capital[250](index=250&type=chunk)[251](index=251&type=chunk)[252](index=252&type=chunk) [Risk Factors](index=59&type=section&id=Item%201A.%20Risk%20Factors) The company's stock and warrant prices may experience volatility due to industry, market, and operational factors - The company warns that the price of its Common Stock and Warrants may be volatile due to numerous factors, including industry changes, market conditions, competitor actions, and its own operating performance[254](index=254&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=60&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company made no unregistered sales of equity securities and repurchased shares to cover tax liabilities on vested RSUs Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | Jan 2025 | — | $ — | | Feb 2025 | — | $ — | | Mar 2025 | 88,935 | $1.23 | | **Total** | **88,935** | **$1.23** | [Defaults Upon Senior Securities](index=60&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - None[256](index=256&type=chunk) [Mine Safety Disclosures](index=60&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[257](index=257&type=chunk) [Other Information](index=60&type=section&id=Item%205.%20Other%20Information) No director or officer adopted, modified, or terminated a Rule 10b5-1 trading arrangement during the quarter - No director or officer of the Company adopted, modified or terminated a Rule 10b5-1 trading arrangement during the three months ended March 31, 2025[258](index=258&type=chunk) [Exhibits](index=61&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the Quarterly Report, including contracts and required certifications

[First Quarter 2025 Results](index=1&type=section&id=First%20Quarter%202025%20Results) Wheels Up reported Q1 2025 financial and operational results, highlighting revenue decline alongside significant improvements in profitability metrics and strategic advancements [Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) Wheels Up reported Q1 2025 revenue of $177.5 million, a 10% decrease year-over-year, yet achieved significant improvements in gross loss and a 51% reduction in Adjusted EBITDA loss, coupled with key strategic initiatives Q1 2025 Key Financial Results (YoY) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $177.5M | $197.1M | (10)% | | Gross Loss | $(1.1)M | $(16.6)M | n/m | | Adjusted Contribution | $22.4M | $2.0M | n/m | | Adjusted Contribution Margin | 12.6% | 1.0% | +12 pp | | Net Loss | $(99.3)M | $(97.4)M | (2)% | | Adjusted EBITDA Loss | $(24.2)M | $(49.2)M | 51% improvement | Q1 2025 Key Operating Metrics (YoY) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Gross Bookings | $241.9M | $224.7M | 8% | | Live Flight Legs | 10,895 | 11,754 | (7)% | | Private Jet Gross Bookings per Live Flight Leg | $18,843 | $16,315 | 15% | | Utility | 38.1 | 30.9 | 23% | | Active Users | 6,166 | 10,218 | (40)% | - The company is focused on improving profitability through increased operational efficiency, as evidenced by a $15 million year-over-year improvement in Gross Loss despite a $20 million revenue decline, driven by a **23% increase in Utility**[7](index=7&type=chunk) - Key strategic initiatives announced or progressing in the quarter include: - **Delta Partnership:** New corporate accounts are the fastest-growing segment, and a new hybrid commercial/private travel option for European destinations will launch in the summer[1](index=1&type=chunk) - **Fleet Modernization:** A definitive agreement was signed with Gogo to install high-speed satellite Wi-Fi, with installations beginning this summer[4](index=4&type=chunk) - **Liquidity:** An agreement was reached with Delta to extend the **$100 million revolving credit facility** through September 2026[10](index=10&type=chunk) - **Shareholder Value:** The Board of Directors authorized a **$10 million open market share repurchase program**[10](index=10&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) The company's consolidated financial statements for the quarter ending March 31, 2025, detail a net loss of $99.3 million, with total assets of $1.09 billion and total liabilities of $1.37 billion, resulting in a negative total equity position of $288.1 million, while net cash used in operating activities improved to $47.9 million [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 2025, Wheels Up reported revenue of $177.5 million, a 10% decrease from $197.1 million in Q1 2024, with a loss from operations of $80.8 million, an improvement from the prior-year period, and a net loss attributable to the company of $99.3 million, or $(0.14) per share Q1 2025 vs Q1 2024 Statement of Operations (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $177,530 | $197,101 | | Cost of revenue | $158,424 | $198,260 | | Loss from operations | $(80,766) | $(84,548) | | Net loss | $(99,313) | $(97,393) | | Net loss per share | $(0.14) | $(0.14) | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, the company's balance sheet showed $171.8 million in cash and cash equivalents, a decrease from year-end 2024, with total assets at $1.09 billion and total liabilities at $1.37 billion, resulting in a widened total stockholders' equity deficit of $288.1 million Balance Sheet Comparison (in thousands) | Line Item | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $171,845 | $216,426 | | Total current assets | $298,807 | $332,069 | | Total assets | $1,090,982 | $1,158,011 | | Total current liabilities | $925,404 | $917,284 | | Total liabilities | $1,370,865 | $1,354,239 | | Total equity | $(288,106) | $(202,109) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2025, net cash used in operating activities improved by 35% to $47.9 million, with net cash provided by investing activities at $16.1 million, primarily from aircraft sales, and net cash used in financing activities at $8.7 million, ending the quarter with $207.1 million in total cash, cash equivalents, and restricted cash Q1 2025 vs Q1 2024 Cash Flow Summary (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(47,924) | $(73,794) | | Net cash provided by investing activities | $16,113 | $19,603 | | Net cash used in financing activities | $(8,686) | $(24,314) | | Net decrease in cash, cash equivalents and restricted cash | $(39,405) | $(79,535) | [Key Metrics and Non-GAAP Measures](index=8&type=section&id=Key%20Metrics%20and%20Non-GAAP%20Measures) This section defines the key operating and non-GAAP financial measures used by the company to evaluate performance, including operating metrics like Total Gross Bookings and Utility for business scale and asset efficiency, and non-GAAP measures such as Adjusted EBITDA and Adjusted Contribution for a clearer view of ongoing operational performance, with detailed reconciliations to their nearest GAAP equivalents [Definitions of Key Operating Metrics](index=8&type=section&id=Definitions%20of%20Key%20Operating%20Metrics) The company defines its primary operating metrics to measure business scale, platform usage, and operational efficiency, including Total Gross Bookings, Live Flight Legs, Utility, and Active Users, with an updated calculation for Completion Rate and On-Time Performance in Q1 2025 to include wholesale flight activity - Key metric definitions include: - **Total Gross Bookings:** Total gross spend by customers on all private jet, group charter, and cargo flight services[25](index=25&type=chunk) - **Live Flight Legs:** Number of completed one-way revenue-generating private jet flights[29](index=29&type=chunk) - **Utility:** Total revenue-generating flight hours on the controlled fleet divided by the average number of available aircraft, expressed as a monthly average[31](index=31&type=chunk) - **Active Users:** Unique non-member customers who flew in the period plus all members at period end[32](index=32&type=chunk) - The presentation of Completion Rate and On-Time Performance was changed for Q1 2025 to include wholesale flight activity, which was previously excluded, to better align with internal operational evaluation[34](index=34&type=chunk) [Definitions of Non-GAAP Financial Measures](index=10&type=section&id=Definitions%20of%20Non-GAAP%20Financial%20Measures) Wheels Up utilizes non-GAAP measures to supplement its GAAP results and provide insight into ongoing operations, with Adjusted EBITDA and Adjusted EBITDAR calculated to assess operating performance by removing the effects of financing, capital spending, and certain non-recurring expenses, while Adjusted Contribution and Adjusted Contribution Margin are used to understand core profitability and scalability by adjusting gross profit for specific non-cash or non-indicative costs within the cost of revenue - **Adjusted EBITDA & Adjusted EBITDAR:** Calculated by adjusting Net Income for items such as interest, taxes, depreciation, amortization, equity-based compensation, and other expenses not indicative of ongoing operating performance, with Adjusted EBITDAR further adjusting for aircraft lease costs[35](index=35&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk) - **Adjusted Contribution & Adjusted Contribution Margin:** Calculated by taking Gross Profit (Loss) and excluding depreciation, amortization, and certain other items within Cost of Revenue, with this metric used to assess profitability trends over time[38](index=38&type=chunk)[39](index=39&type=chunk) [Reconciliations of Non-GAAP Financial Measures](index=11&type=section&id=Reconciliations%20of%20Non-GAAP%20Financial%20Measures) The company provides detailed reconciliations of its non-GAAP measures to the most comparable GAAP figures, showing Adjusted EBITDA improved significantly to a loss of $24.2 million in Q1 2025 from a loss of $49.2 million in Q1 2024, and Adjusted Contribution showed a substantial positive swing, reaching $22.4 million from $2.0 million in the prior-year quarter, boosting the Adjusted Contribution Margin to 12.6% from 1.0% Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss | $(99,313) | $(97,393) | | Adjustments (Depreciation, Interest, etc.) | $75,163 | $48,164 | | **Adjusted EBITDA** | **$(24,150)** | **$(49,229)** | Reconciliation of Gross Profit (Loss) to Adjusted Contribution (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Gross profit (loss) | $(1,104) | $(16,554) | | Add back: Depreciation and amortization | $20,210 | $15,395 | | Other adjustments | $3,335 | $3,174 | | **Adjusted Contribution** | **$22,441** | **$2,015** | [Supplemental Information](index=13&type=section&id=Supplemental%20Information) This section provides a more detailed breakdown of revenue by category and the allocation of specific expenses, highlighting that Membership revenue saw the sharpest year-over-year decline at 45%, whereas Flight revenue, the largest component, decreased by only 2%, with expense details covering costs associated with equity-based compensation, fleet modernization, and business integration [Supplemental Revenue Information](index=13&type=section&id=Supplemental%20Revenue%20Information) In Q1 2025, total revenue of $177.5 million was primarily driven by $147.6 million in Flight revenue, with Membership revenue at $9.2 million, a 45% decrease year-over-year, representing the most significant decline among the categories, and Other revenue at $20.8 million, down 29% from the prior year Supplemental Revenue by Type (in thousands) | Revenue Type | Q1 2025 | Q1 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Membership | $9,189 | $16,854 | $(7,665) | (45)% | | Flight | $147,568 | $150,929 | $(3,361) | (2)% | | Other | $20,773 | $29,318 | $(8,545) | (29)% | | **Total** | **$177,530** | **$197,101** | **$(19,571)** | **(10)%** | [Supplemental Expense Information](index=13&type=section&id=Supplemental%20Expense%20Information) For Q1 2025, the company allocated $12.7 million in equity-based compensation, with the majority ($11.9 million) in General and Administrative expenses, while fleet modernization expenses totaled $5.1 million, split between Cost of Revenue and G&A, and integration and transformation expenses were $1.2 million Q1 2025 Supplemental Expense Allocation (in thousands) | Expense Type | Cost of revenue | General and administrative | Total | | :--- | :--- | :--- | :--- | | Equity-based compensation | $78 | $11,908 | $12,661 | | Integration and transformation | $363 | $320 | $1,183 | | Fleet modernization expense | $3,057 | $2,018 | $5,147 |

Core Insights - Wheels Up Experience Inc. reported financial results for Q1 2025, highlighting progress in business transformation and profitability despite challenging economic conditions [3][6][7] - The company has authorized a $10 million share repurchase program to enhance shareholder value [3][6] - A partnership with Delta is expected to drive growth, particularly in corporate accounts, with new hybrid travel options launching this summer [7][8] Financial Performance - Revenue for Q1 2025 was $177.5 million, a decrease of 10% year-over-year [6][8] - Total Gross Bookings increased by 8% to $241.9 million, while Private Jet Gross Bookings rose by 7% to $205.3 million [5][6] - The company reported a net loss of $99.3 million, or $(0.14) per share, which is a slight increase in loss compared to the previous year [6][8] Operational Metrics - Live Flight Legs decreased by 7% to 10,895, while Private Jet Gross Bookings per Live Flight Leg increased by 15% to $18,843 [5][6] - Utility, a measure of operational efficiency, improved by 23% to 38.1 [5][7] - Completion Rate was 97% and On-Time Performance was 85% for the quarter [8][27] Strategic Initiatives - The company is modernizing its fleet, including a partnership with Gogo to install high-speed satellite Wi-Fi, with installations expected to begin this summer [7][8] - Wheels Up's liquidity position is strong, with approximately $272 million available, including a $100 million undrawn revolving credit facility extended through September 2026 [7][8] - The company is focusing on enhancing operational reliability and customer experience through its strategic initiatives [7][8]

Core Viewpoint - Wheels Up Experience Inc. is focused on improving profitability and expanding margins through fleet modernization, partnerships, and premium customer solutions [1][2]. Financial Compliance - Wheels Up received a notice from the NYSE on April 22, 2025, indicating that its average closing stock price was below $1.00 for 30 consecutive trading days, which is necessary for continued listing [1][3]. - The company has six months to regain compliance with the NYSE's minimum share price requirement and plans to seek stockholder approval for a reverse stock split at its annual meeting on June 10, 2025 [3]. Business Strategy - The company is committed to long-term operational improvements and aims to build a resilient business model for sustainable profitability [2]. - Key initiatives include modernizing its fleet with Embraer Phenom 300 and Bombardier Challenger 300 jets, leveraging a partnership with Delta Air Lines, and delivering premium solutions for customers [2]. Financial Position - As of December 31, 2024, Wheels Up had approximately $316 million in liquidity, consisting of about $216 million in unrestricted cash and an undrawn $100 million commitment from Delta [2]. Company Overview - Wheels Up is a leading provider of on-demand private aviation in the U.S., offering a diverse fleet and a global network of safety-vetted charter operators [4]. - The company provides charter and membership programs, as well as freight, safety, security, and managed services to various clients, including individuals and government organizations [4].

ATLANTA, April 24, 2025 /PRNewswire/ -- Wheels Up Experience Inc. (NYSE: UP) today announced that it will release its first quarter 2025 financial results on Thursday, May 1, 2025. Earnings materials will be available on the Wheels Up investor relations website at investors.wheelsup.com. About Wheels Up Wheels Up is a leading provider of on-demand private aviation in the U.S. with a large, diverse fleet and a global network of safety-vetted charter operators, all committed to safety and service. Customers a ...

Chicago, Ill., March 24, 2025 (GLOBE NEWSWIRE) -- rEvolution, a global leader in sports marketing, has been named the Agency of Record (AOR) for brand experiences by Wheels Up, one of the world’s leading private aviation companies. The partnership will focus on developing Wheels Down, a unique customer experience series designed to elevate the private aviation lifestyle. rEvolution, with its decades of experience in elevating brand touchpoints and customer engagement through strategic partnership strategies ...

Core Insights - Wheels Up Experience Inc. is being considered as a turnaround candidate based on its financials and presentations reviewed by an analyst [1] Financial Analysis - The analyst previously warned against investing in Wheels Up Experience Inc. after a thorough review of the company's financials [1]

Financial Performance - Wheels Up reported a history of net losses and has not consistently generated positive cash flow from operations, making future operating results difficult to predict[15]. - Future cash flows and liquidity may be impacted by the company's ability to execute its growth strategies and manage operational efficiency initiatives[15]. - A material weakness in internal control over financial reporting was identified as of December 31, 2024, impacting the reliability of financial statements[181]. - The company has incurred substantial costs in maintaining certifications and complying with various laws, which may affect its financial performance[173]. - The company does not currently pay cash dividends and does not anticipate doing so in the foreseeable future[191]. Business Strategy - The company announced a fleet modernization strategy in October 2024, with anticipated commercial, financial, and operational impacts[15]. - In June 2024, Wheels Up introduced new membership offerings aimed at simplifying the private aviation experience, which are expected to drive future revenue growth[20][24]. - The company has sold its aircraft management business to focus on core flight services, simplifying operations and enhancing efficiency[45]. - The company anticipates future market expansions and the addition of new aircraft types to its fleet, supported by revised FAA certificate consolidation plans[51]. Membership and Services - Wheels Up Membership provides access to a large fleet and includes benefits such as capped hourly rates and guaranteed availability for members who purchase Prepaid Blocks[21][22]. - The Wheels Up Charter service allows customers to book flights with no upfront costs, offering a global solution for various charter needs[26]. - Enhancements to Wheels Up Charter include a 2% flight credit for every $50,000 spent and the transition of certain memberships to this service, expected to result in cost savings[27]. - Wheels Up's member programs are designed to enhance travel benefits and provide flexible global solutions, positioning the company well in the private aviation market[24]. Operational Efficiency - The company utilizes a controlled fleet of aircraft to fulfill both Wheels Up Membership and Charter flights, enhancing operational control and cost efficiency[32]. - The company expects to consolidate FAA operating certificates from five to two by the end of 2024, which will contribute to operational efficiency and service delivery improvements[49]. - Significant investments in technology and data intelligence are being made to improve operational efficiency and enhance customer experiences[46]. - The company has entered into long-term agreements with qualified vendors for aircraft maintenance and repairs, ensuring compliance with FAA regulations[66]. Competition and Market Environment - The company faces risks including competition in the private aviation industry and reliance on a limited number of original equipment manufacturers[15]. - The private aviation industry remains highly competitive, with the company competing across various service models, including membership programs and charter solutions[38]. - The private aviation industry experiences seasonal fluctuations, with the highest volume of Prepaid Block purchases occurring in Q4[52]. Regulatory and Compliance - The company is subject to extensive government regulations, including oversight from the U.S. Department of Transportation and the FAA, impacting various operational aspects[68]. - The company operates under various federal, state, local, and foreign environmental regulations that could impact its operations[84]. - Environmental regulations may lead to increased operational costs and affect the availability of hydrocarbon-based fuels for the company's aircraft[177]. - Compliance with evolving privacy and data protection laws is critical for enhancing the user experience of Wheels Up's mobile application and marketing site[81]. Employee and Organizational Structure - As of December 31, 2024, Wheels Up had 1,866 employees, including 1,807 full-time and 59 part-time employees, with a decrease in headcount primarily due to organizational streamlining[86]. - Approximately 78% of Wheels Up's employees are based in the U.S., with the remaining employees in Europe and other territories[86]. - The company anticipates onboarding pilots and maintenance personnel as part of its fleet modernization strategy, including the addition of Embraer Phenom 300 and Bombardier Challenger 300 aircraft[86]. Financial Instruments and Stock - The company entered into a Credit Agreement on September 20, 2023, providing a term loan facility of $390 million and a revolving credit facility of $100 million[90]. - In connection with the Credit Agreement, Wheels Up issued 671,239,941 shares of Common Stock to lenders in two private placements[91]. - The NYSE may delist the company's Common Stock, which could limit investors' ability to transact and result in increased volatility[195]. - The market price of the company's Common Stock may be volatile, influenced by substantial sales of shares by major stockholders[194]. Safety and Risk Management - The company maintains a rigorous pilot selection process, exceeding FAA requirements for training and flight hours[58]. - The company has implemented voluntary Safety Management Systems (SMS) across its FAA operating certificates to enhance operational safety[56]. - The company may face litigation or disputes related to past material weaknesses in internal control, which could adversely impact its business[185].