Wheels Up suffered further losses in the first quarter (Q1) of the year, reporting net losses of $100.9m, compared with $88.7m in Q1 2022.
Both active members and live flight legs fell during the quarter, according to the company’s results. . Active members dropped 1% to 12,285 in total, while live flight legs decreased 13% year-on-year (yoy) to 15,389.
The company’s adjusted EBITDA remained flat at a loss of $49m, while revenue was up $26m yoy to $352m. Wheels Up attributed the rise in revenue to an increase in aircraft sales and the acquisition of Air Partner.
The public firm said it has $363m cash in hand and a total of $1.7bn in assets, while owing $1.5bn in liabilities.
Wheels Up is evaluating the disposal of “certain non-strategic assets” to focus on its core charter business, said the company. The firm also announced programme changes, including a new programme with Delta Air Lines that will give volume-based preferential rates on Wheels Up flights to its corporate customers.
Earlier today, Wheels Up revealed Kenny Dichter, who founded the business, is stepping down as CEO. Todd Smith, chief financial officer, has been appointed interim CEO.
Smith said: “Our revised product offering will improve Wheels Up’s competitiveness and service delivery, as well as the flight experience for members and customers. These changes are positive steps for Wheels Up and we are committed to making the decisions necessary to improve this business for our customers, employees and shareholders.”
Meanwhile, read more about Dichter’s decision to step down here.
