Wheels Up Outlines Path to Profitability After Another Quarterly Loss

Since going public via a SPAC-IPO last summer, Wheels Up's share price has slumped in the public markets amid questions about its addressable market and profitability.

Michael Wildes

Thursday, November 10, 2022 at 03:30 PM ET

Verified

The company said it hopes to be profitable by 2024 after cutting costs, streamlining operations and accelerating its digital infrastructure. [Courtesy: Wheels Up]

Key Takeaways:

Wheels Up reported record third-quarter revenue of $420.4 million, a 39 percent increase driven by strong customer demand and membership growth, despite its stock price slump since going public.
The company is actively pursuing profitability by 2024 through cost-cutting, streamlining operations, and accelerating digital infrastructure, aiming to improve operational efficiencies.
Profitability and growth efforts are significantly challenged by an industry-wide pilot training backlog, which delays pilots entering service, in addition to supply chain constraints and inflationary pressures that contributed to a higher net quarterly loss.

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On-demand private aviation company Wheels Up (NYSE: UP) reported third-quarter revenue of $420.4 million, a 39 percent increase over the same period last year, which it attributes to strong customer demand amid its embattled stock price.

“Our strong foundation, with an iconic brand and large base of loyal customers, helped drive another record revenue performance in the third quarter. It further reinforces the strength of our demand, even in this uncertain macroeconomic environment,” Kenny Dichter, Wheels Up chairman and CEO, said in an investor statement.