Finance

Wheels Up revenues dive 44% amid exit of aircraft management and sale businesses

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Wheels Up revenues dive 44% amid exit of aircraft management and sale businesses
Wheels Up revenues have tumbled 44% year-on-year (YoY) down to $197 million. Nearly half of the $155 million decrease in revenue was driven by the company exiting its aircraft management and aircraft sale businesses. The private jet charter company reported that its active members were down a quarter to 9,155 members. It said this was ""primarily as a result of the regionalisation of our member programs and focus on profitable flying."" Its adjusted EBITDA remained flat YoY at a loss of $49.2 million. Though, it was able to slightly recuperate its net losses at a 3% improvement to $97.4 million. ""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,"" said Wheels Up CEO George Mattson. Its chief financial officer Todd Smith added: ""Despite slower demand in January and February, we saw sequential improvement in March that is following through into the second quarter. ""The plan that we put in place over the last year in terms of rebalancing our revenue mix, reducing our cost structure and improving our operational execution has laid the foundation for the improvement in our financial profile that we expect over the course of this year."" It ended the quarter with a total of $1.2bn in assets, down from $1.3bn at the end of the year. Its total liabilities and equity at the end of the quarter was $1.2bn at the end of the quarter, down from $1.3bn.