Financial Data and Key Metrics Changes - Revenue for Q3 2024 was $194 million, roughly flat sequentially, indicating stability after previous declines [32] - Adjusted contribution margin was 14.8%, up significantly from 7.8% in Q2 and 1% in Q1, marking the highest level since going public [36] - Adjusted EBITDA loss improved to $20 million, a reduction of nearly 50% sequentially, reflecting operational improvements [11][37] - Cash burn reduced significantly, with operating cash flow improving 44% sequentially and 94% year-over-year, from a cash outflow of $250 million a year ago to $15 million in the current quarter [39] Business Line Data and Key Metrics Changes - Private jet gross bookings were down 20% year-over-year but only 6% sequentially, reflecting relative stability [33] - Prepaid blocks increased by 86% year-over-year to $147 million, indicating strong traction with corporate customers [38] - Total gross bookings, including private jet, group charter, and cargo, were down 16% year-over-year but only 4% sequentially [34] Market Data and Key Metrics Changes - Live leg demand was flat sequentially versus an industry decline of over 15%, showcasing outperformance [9] - The company expects both private jet and total gross bookings to increase sequentially in Q4 2024 [34] Company Strategy and Development Direction - The company aims to become the best-run private aviation company globally, focusing on operational improvements and customer-centric offerings [5][46] - A fleet modernization strategy was announced, transitioning to Embraer's Phenom 300 series and Bombardier's Challenger 300 series aircraft, expected to enhance operational efficiency and reduce costs [14][23] - The partnership with Delta Airlines is central to the company's strategy, providing unique integrated travel solutions [7][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive adjusted EBITDA for the full year in 2025, despite potential headwinds in Q4 [12][26] - The company anticipates that the fleet modernization will significantly improve operational performance and profitability margins [23][43] - Management highlighted a nearly 50% increase in customer satisfaction, indicating positive reception of recent changes [24] Other Important Information - The company has entered into a commitment letter with Bank of America for a new up to $332 million senior secured revolving credit facility, enhancing liquidity [21][44] - The company is actively searching for a permanent CFO, with strong interest from candidates due to the company's progress [29] Q&A Session Summary Question: What are the expectations for future growth? - Management expects to resume growth in 2025, supported by the fleet modernization and improved operational metrics [32][46] Question: How is the partnership with Delta Airlines impacting sales? - The partnership has led to a significant increase in corporate block sales, representing the highest mix of overall block sales in September [13][38] Question: What are the anticipated benefits of the fleet modernization? - The modernization is expected to improve maintenance availability, asset utilization, and lower operating costs, driving profitability [42][43]

Financial Performance - Revenue for Q3 2024 was $193.9 million, a decrease of 39.4% compared to $320.1 million in Q3 2023[8] - Net loss for Q3 2024 was $57.7 million, compared to a net loss of $144.8 million in Q3 2023, representing a 60.2% improvement[9] - The company reported a comprehensive loss of $50.9 million for Q3 2024, down from $153.0 million in Q3 2023[9] - Net loss for the nine months ended September 30, 2024, was $252,097, a significant improvement from a net loss of $406,272 for the same period in 2023, representing a reduction of approximately 38%[14] - Total revenue for the nine months ended September 30, 2024, was $587,289, down 42% from $1,006,937 in the same period of 2023[29] - Basic and diluted net loss per share for the three months ended September 30, 2024, was $(0.08), compared to $(3.51) for the same period in 2023[152] Cost Management - Total costs and expenses for Q3 2024 were $235.8 million, down 47.5% from $449.1 million in Q3 2023[8] - Adjusted EBITDA is expected to improve as the company implements cost reduction measures and operational efficiency strategies[5] - The company incurred restructuring charges of $10.5 million during the nine months ended September 30, 2023, primarily related to severance payments and employee benefits[141][142] Equity and Deficit - The accumulated deficit increased to $2.02 billion as of September 30, 2024, compared to $1.76 billion a year earlier[7] - As of September 30, 2024, Wheels Up Experience Inc. reported a total equity of $1,911,362,000, with an accumulated deficit of $(2,015,357,000)[10] - Total liabilities and equity stood at $1.04 billion, a decrease from $1.32 billion in the previous year[7] Cash Flow and Liquidity - Cash flows from operating activities showed a net cash used of $115,814 for the nine months ended September 30, 2024, compared to $661,494 for the same period in 2023, indicating an 83% improvement[14] - Cash, cash equivalents, and restricted cash at the end of the period were $148,834, down from $274,162 at the end of September 30, 2023[14] - Cash and cash equivalents decreased to $115.909 million as of September 30, 2024, from $263.909 million as of December 31, 2023[53] Revenue Streams - Membership revenue for the nine months ended September 30, 2024, was $46,131, down 28% from $63,780 in the same period of 2023[29] - The company reported a significant decrease in deferred revenue, with a balance of $12,813 for the nine months ended September 30, 2024, compared to $378,949 for the same period in 2023[14] - The company completed the sale of its aircraft management business on September 30, 2023, impacting revenue figures[29] Debt and Financing - Total long-term debt as of September 30, 2024, was $209.6 million, a decrease from $235.1 million as of December 31, 2023[57] - The company entered into a Credit Agreement on September 20, 2023, providing a term loan facility of $350.0 million and a revolving credit facility of $100.0 million[64] - Maturities of principal debt payments for the next five years total $596.9 million, with the largest payment of $496.7 million due in 2028[58] Shareholder Equity and Compensation - The total equity-based compensation expense for the nine months ended September 30, 2024, was $33.4 million, an increase from $21.7 million for the same period in 2023[121] - The number of non-vested PSUs as of September 30, 2024, was 387 thousand, with a weighted-average grant fair value of $3.05[105] - The total unrecognized compensation cost related to outstanding and unvested Executive Performance Awards was $164.4 million, expected to be recognized over 4.3 years[113] Legal and Compliance - The company filed a lawsuit against Exclusive Jets, LLC for wrongful termination of the Fleet Guaranteed Revenue Program Agreement, seeking compensatory damages including the return of material deposits totaling $10.3 million and $10.5 million as of September 30, 2024, and December 31, 2023, respectively[135][137] - The estimated potential exposure for sales and use tax liability was $10.3 million and $10.5 million as of September 30, 2024, and December 31, 2023, respectively, included in accrued expenses[136][137] Taxation - The company recorded income tax expenses of $0.4 million and $0.7 million for the three and nine months ended September 30, 2024, respectively[144] - The effective tax rate for the three months ended September 30, 2024, was (0.7)%, differing from the federal statutory rate of 21% due to a full valuation allowance against deferred tax assets[145] - As of September 30, 2024, the company established a valuation allowance on the majority of its U.S. deferred tax assets, concluding it is more likely than not that these assets will not be realized[147]

Improvement in financial performance driven by operating initiatives over past yearFleet modernization plan represents next phase of strategic journey to profitability  New credit facility expected to strengthen balance sheet; credit support from Delta Air Lines underscores commitment to strategic partnershipATLANTA, Nov. 7, 2024 /PRNewswire/ -- Wheels Up Experience Inc. (NYSE:UP) today announced financial results for the third quarter, which ended September 30, 2024.Third Quarter 2024 Highlights1 Revenue w ...

Wheels Up to transition its current jet fleets to Phenom 300 Series and Challenger 300 Series aircraft Entered into agreement to acquire GrandView Aviation's entire fleet of 17 Phenom 300 and Phenom 300E aircraftEntered into agreement to sell entire owned fleet of super mid Citation X aircraft and lease for a limited period in preparation for transition to Challenger fleetNew fleet to be outfitted with best-in-class Gogo Galileo HDX satellite-based WiFiCommitted financing to be provided by Bank of America, ...

ATLANTA, Oct. 17, 2024 /PRNewswire/ -- Wheels Up Experience Inc. (NYSE: UP) today announced that it will release its third quarter 2024 financial results on Thursday, November 7, 2024. Management will provide a review of the quarter and business update in prepared remarks during a webcast at 10 am ET. The event can be accessed via the Events & Presentations page of our Investor Relations website. An online replay of the conference call will be available approximately three hours after the webcast. About Whe ...

Approximately 97.2% of lead investor shares will remain subject to the lock-up restriction until September 20, 2025 ATLANTA, Sept. 23, 2024 /PRNewswire/ -- Wheels Up Experience Inc. (NYSE: UP) today announced that lead investors, Delta Air Lines, Inc., CK Wheels LLC, and Cox Investment Holdings, LLC, agreed to extend the lock-up restriction with respect to all their shares of common stock issued under the Investment and Investor Rights Agreement, for an additional year, until September 20, 2025. In addition ...

Chief Financial Officer Todd Smith and Chief Legal Officer Laura Heltebran to depart Matthew Knopf to join as Chief Legal Officer and Secretary, with Eric Cabezas acting as interim Chief Financial Officer ATLANTA, Aug. 21, 2024 /PRNewswire/ -- Wheels Up Experience Inc. (NYSE: UP) today announced two transitions on its executive leadership team, as Chief Financial Officer Todd Smith will be leaving the company for a new role, and Chief Legal Officer Laura Heltebran will be departing to pursue other opportuni ...

Drazen_/E+ via Getty Images The heightened market volatility over the past several weeks, especially after interupting months of calm, has returned the feeling of fear into many investors' mindsets. And yet, it's precisely when the market is jittery that some of the best long-term investments can be made, especially in out-of-the-limelight growth stocks. And while I wouldn't recommend dedicating large chunks of your portfolio to risky plays, these market junctures are great tor betting on a few high risk-hi ...

WHEELS UP Second quarter 2024 earnings August 8, 2024 Disclaimer Cautionary statement regarding forward-looking statements This presentation contains certain "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of ...

Wheels Up Experience Inc. (NYSE:UP) Q2 2024 Earnings Call August 8, 2024 10:00 AM ET Company Participants Keith Ferguson - Investor Relations George Mattson - Chief Executive Officer Todd Smith - Chief Financial Officer Operator Hello, everyone, and welcome to today’s Wheels Up Second Quarter 2024 Earnings Webcast. I will now hand the line over to Keith Ferguson to begin. Keith Ferguson Thank you. This morning, we announced our second quarter results. The earnings release with the supporting tables as well ...