While Wheels Up's revenues and members climbed in the second quarter, its net losses also widened. The New York City-based on-demand private aviation provider recorded quarterly revenues of $425.5 million, up 49 percent from the same three-month period last year. Despite the gain in revenue, Wheels Up also posted net losses of $92.7 million, an increase of $63.8 million from the second quarter of 2021.
The company attributed the higher loss to increased operating costs, supply constraints, and equity-based compensation expenses. Chief financial officer Todd Smith said the company remains focused on “our journey towards significant and sustainable profitability.” The company said it expects to achieve profitability in 2024.
Also during the quarter, Wheels Up saw its active members surge 20 percent year-over-year to 12,667, which the company said was driven by new member sales and member retention. Live flight legs also rose 19 percent during the period, aided by its April acquisition of UK-based aviation service provider Air Partner.
“Air Partner is off to a strong start in its first quarter as part of our company, and we are already seeing the benefits of having a global footprint,” Wheels Up chairman and CEO Kenny Dichter said. “Our team is moving quickly to enhance our technology-enabled marketplace platform, which we expect will provide us with a significant competitive advantage.”