Wheels Up revenues soared 113 percent year-over-year, to $285.6 million, in the second quarter, while the number of active members has grown by 47 percent from a year ago, to 10,515, the membership-based charter services provider reported Thursday morning.
In its first quarterly results release since going public through a special purpose acquisition company (SPAC) merger last month, Wheels Up noted flight legs were also up by 146 percent to 18,234. But at the same time, the company, which owns a fleet of King Airs and Citations, saw a $1.6 million increase in year-over-year net loss, to $29 million, even as its adjusted EBITDA improved by $7.6 million year-over-year to an $8.5 million loss.
"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 Wheels Up chairman and CEO Kenny Dichter. "Our iconic brand, combined with our compelling membership model and exclusive partnerships and experiences, has uniquely positioned us to gain market share during this time of robust demand."
Wheels up closed on its merger on July 13 with the SPAC Aspirational Consumer Lifestyle, making it a publicly-traded company. Wheels Up said the capital raised through that merger would help accelerate its investment in technology and product offerings, as well as global growth strategies.
The company has had a number of initiatives underway as it looks to build on its member services, enhance its technologies capabilities, and shore up its supplier base. They have included a partnership to offer an American Express Premium Private Jet Program for all Platinum Card Members, the launch of the customizable “Up for Business” program, and the addition of brands to its member benefits platform that includes Porsche Cars North America and Abercrombie & Kent.
Also, Wheels Up transferred its Mountain Aviation fleet onto the Avianis Flight Management, increased partnerships with third-party operators through guaranteed rate programs to secure additional supply, and optimized its forecasting capabilities on the supply front.
"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,” said Wheels Up CFO Eric Jacobs, adding that demand increased throughout the first half of the year across all cabin classes.
The growth in members came as Wheels Up brought in new clients and successfully transferred jet card clients into members. In addition, Wheels Up said its ability to retain existing members further strengthened the underlying results.