Wheels Up reported third-quarter losses of $145 million this morning on $320 million in revenues. The loss included a $56 million non-cash goodwill impairment charge. Meanwhile, active members fell 15 percent year-over-year, to 10,775, and live flight legs were down by 21 percent, to 16,581. Revenue per live flight leg dropped by 2 percent, to $12,945.
For the first nine months, Wheels Up posted $407 million in losses on $1.007 billion in revenues. Quarterly losses and revenues have been decreasing this year as the company continues to implement its plan to reorganize into two principal service areas and consolidate Part 135 certificates. It also recently opened a consolidated operations center in Atlanta.
"Despite the challenging year, we are proud of the progress we have made on our operating and profitability goals and the renewed market confidence resulting from the recently closed capital infusion," said CFO Todd Smith. "Our on-time performance and controllable interruption rates are improving, and the third quarter marked our best profit performance since 2021."
"The strategic [$450 million] investment from Delta Air Lines, along with our new partners [announced in September], demonstrates their confidence in our operational and commercial plan to deliver a compelling and differentiated experience for our customers," said CEO George Mattson. "I look forward to leveraging a deeper relationship with Delta."