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 year-over-year, driven by strong customer demand despite a struggling stock price.
Despite robust revenue growth, the company is not yet profitable, posting an increased net quarterly loss of $86.8 million, and aims to achieve profitability by 2024 through cost-cutting and operational streamlining.
A significant challenge to Wheels Up's growth and profitability is an industry-wide pilot training bottleneck, specifically the difficulty in securing simulator time for newly hired pilots, despite exceeding its hiring goals.

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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.