Wheels Up announced financial results for the second quarter, which ended June 30, 2021.
Second Quarter 2021 Highlights
- Revenue increased 113% year-over-year to $285.6 million
- Active Members grew 47% year-over-year to 10,515 in total
- Live Flight Legs increased 146% year-over-year to 18,234 in total
- Net loss increased by $1.6 million year-over-year to $(29.0) million
- Adjusted EBITDA improved by $7.6 million year-over-year to $(8.5) million
"The accelerating growth in our revenue is a great way to mark our first reported results as a public company and creates a solid foundation to build upon," said Kenny Dichter, Wheels Up Chairman & CEO. "Our iconic brand, combined with our compelling membership model and exclusive partnerships and experiences, have uniquely positioned us to gain market share during this time of robust demand. As always, I want to recognize our hardworking team for their tireless efforts and thank our loyal Members and Customers for their trust in us."
"The demand in the first half of the year has increased across all cabin classes and our diverse fleet of aircraft is contributing to our success in attracting new Members, retaining existing Members and driving an increase in live flight legs," said Eric Jacobs, Wheels Up Chief Financial Officer. "Our strategic initiatives are resonating with Members and Customers, and we believe that our investments in operations, technology, product development and customer service will help ensure a premium experience and drive future operating efficiencies."
Building a Marketplace
The Company is focused on building the leading demand generation platform for private aviation and connecting travel demand with fragmented and underutilized assets while continuing to improve customer experience. The increase in both demand and supply drives more liquidity in the marketplace.
Demand Initiatives
- Partnered with American Express as the exclusive private jet partner for the new American Express Premium Private Jet Program for all Platinum® Card Members.
- Launched "UP for Business", a new customizable solution established within Wheels Up to meet the travel needs of corporate clients.
- Added iconic luxury brands to the robust Member Benefits platform including Porsche Cars North America and Abercrombie & Kent, the world's leading luxury travel company.
Supply Initiatives
- Continued to build on the Company's technology capabilities with the conversion of Wheels Up's Mountain Aviation, LLC fleet onto the Avianis Flight Management System in June, providing the ability to better optimize supply.
- Improved forecasting capabilities powered by machine learning, which facilitates the Company's ability to make short- and long-term commitments to secure supply.
- Increased partnerships with third-party operators through Guaranteed Rate Programs (GRPs) to secure additional supply.
Other Recent Highlights
- Completed merger with Aspirational Consumer Lifestyle Corp. on July 13, 2021, with shares commencing trading on the New York Stock Exchange on July 14, 2021 under the "UP" ticker symbol.
- Continued to focus on diversity, equity and inclusion with C200, the preeminent organization of women business leaders representing $1.4 trillion in combined revenue, by hosting a unique Porsche driving experience event, and announced a partnership with the NFL Players Association and will be participating in its Community MVP program.
For the second quarter:
- Active Members grew 47% year-over-year to 10,515 driven by strong new member additions and Core membership retention as well as continued success converting legacy Wheels Up Private Jets LLC Jet Card holders into Wheels Up Members.
- Active Users grew 27% to 11,281 year-over-year primarily driven by the growth in Active Members.
- Live Flight Legs increased by 146% year-over-year to 18,234 with strong flight demand across all cabin classes driven by the growth in Active Members and Active Users and the impact of COVID-19 on 2020 results. The acquisitions of Mountain Aviation, LLC and Wheels Up Private Jets LLC also contributed to the growth.
- Revenue per Live Flight Leg increased 3% year-over-year to $11,663 as a result of a higher mix of larger cabin flying and partially offset by a decrease in average flight stage length.
- Revenue increased 113% year-over-year driven by strong flight demand, the impact of COVID-19 on 2020 results and recent acquisitions.
- Adjusted EBITDA of $(8.5) million, improving $7.6 million year-over-year, due to operating leverage of the business.