Wheels Up Experience -Wheels Up Announces December Quarter and Full Year 2024 Results

Core Insights - Wheels Up Experience Inc. reported a stronger financial position at the end of 2024, with the fourth quarter showing the lowest Adjusted EBITDA loss since going public and nearly breakeven performance in December [3][6] - The company is undergoing a fleet modernization strategy, transitioning to preferred aircraft types, which is expected to enhance operational efficiency and profitability [7][8] - John Verkamp has been appointed as the new Chief Financial Officer, effective March 31, 2025, bringing extensive financial leadership experience [7] Financial Performance - For the December quarter 2024, Wheels Up generated revenue of $204.8 million, with a net loss of$ 87.5 million, equating to $(0.13) per share [6][8] - The full year 2024 revenue was$ 792.1 million, with a net loss of $339.6 million, or$ (0.49) per share, representing a 30% improvement in net loss compared to 2023 [6][8] - Adjusted Contribution for the December quarter was $39.6 million, with an Adjusted Contribution Margin of 19.3%, a significant increase of over 18 percentage points year-over-year [6][8] Operational Highlights - Active Members decreased by 46% year-over-year to 5,369, while Active Users fell by 32% to 7,286 [5][8] - The company achieved a 98% Completion Rate and 80% On-Time Performance during the December quarter, despite challenges from weather and air traffic control [7][8] - Utility, defined as revenue-generating flight hours per available aircraft, increased by 33% to 41.1 hours [8] Strategic Initiatives - The fleet modernization strategy includes the addition of 18 new Phenom jets and the retirement of 50 legacy jets, aimed at improving operational reliability and customer satisfaction [7][8] - Wheels Up is collaborating with Delta to develop integrated aviation solutions for corporate and premium leisure customers, enhancing the overall customer experience [7][8] - A new five-year,$ 332 million secured revolving credit facility was established with Bank of America, providing enhanced access to capital for fleet acquisitions [7][8]