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% increase year-over-year, driven by strong customer demand, increased memberships, and flight legs, despite a struggling stock price since its IPO.
Despite strong revenue growth, the company remains unprofitable, posting an increased net quarterly loss of $86.8 million, and is implementing cost-cutting, operational streamlining, and digital acceleration to achieve profitability by 2024.
A significant challenge hindering Wheels Up's growth and contributing to losses is an industry-wide pilot training backlog, which can take up to 90 days for simulator time, despite the company exceeding its pilot 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.