Wheels Up Continues To Bleed Red Ink

First quarter revenues at private jet charter company Wheels Up plunged by $155 million year over year, to $197 million, according to a recently released earnings report. It also reported a $97 million quarterly loss, a marginal improvement from a $100 million loss in the first three months of 2023. Wheels Up said nearly half of the decline in revenue is from the exiting of the aircraft charter management and aircraft brokerage businesses.

Wheels Up’s cash on hand in the quarter also fell by about $80 million, to $180.8 million. Meanwhile, its active members decreased by 25% YOY, to 9,155.

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“Wheels Up has made great strides to improve our operations and consistently deliver exceptional service and an experience worth repeating for our customers,” said Wheels Up CEO George Mattson. “Our strong operational performance provides the foundation for driving to profitable growth. I am pleased with the market interest in the accessibility and flexibility of our offerings, and we are seeing accelerating commercial momentum through our strategic partnership with Delta Air Lines.”

The company has previously touted its partnership with Delta Air Lines, as well as $40 million of investor capital from Kore Capital and Whitebox Advisors. The company announced plans to open a flagship maintenance facility at Palm Beach International Airport (KPBI), while ceasing operations at its maintenance facilities in Cincinnati and Broomfield, Colorado.

Wheels Up also recently restructured its executive leadership team. Former chairman of operations Dave Holtz last month was promoted to COO. Prior to his time at Wheels Up, Holtz ran the operations and customer center at Delta Air Lines, which owns a substantial stake in Wheels Up. Dave Harvey was recently appointed as chief commercial officer.