Jet card and aircraft management specialist Wheels Up Experience has revealed its financial results for the third quarter. Highlights include an increase in revenue by 55% year-over-year to $302.0 million, active members grew 45% year-over-year to 11,375 in total, and live flight legs increased 52% year-over-year to 19,714 in total.
“I am pleased to report another quarter of record revenue, which offers further evidence that the work to expand our fleet offerings, invest in our iconic brand and serve our high value customers is setting us apart,” says Kenny Dichter, chairman and chief executive officer. “Our supply constraints are no different than what many companies are facing today and reinforce the need for the technology-enabled marketplace platform that we are building. In the meantime, however, it's imperative that we continue our investments to deliver the best experience possible for every customer.”
Recent initiatives by the company include a strategic relationship with American Express, offering its members exclusive benefits; accelerated success in selling ‘UP for Business‘; announcing new capped rate pricing and programme changes for its membership programmes; enhancing the senior leadership team with the appointments of Vinayak Hegde to president, Gene McKenna as chief product officer, Srikanth Satya as chief technology officer and Julia Zhang as SVP of pricing and revenue management.
Financial and operating highlights for the third quarter include an increase in active members by 45% year-over-year to 11,375; active users grew 29% to 12,011 year-over-year; live flight legs increased by 52% year-over-year to 19,714 with strong flight demand across all cabin classes driven. The acquisition of Mountain Aviation, contributed to year-over-year growth; revenue per live flight leg increased 2% year-over-year to $11,076; revenue increased 55% year-over-year driven by strong flight demand; net income (loss) decreased by $(80.0) million due to several factors, including the impact of the company benefiting from the utilisation of $51.6 million of CARES - Act grant funding in 2020, a decrease in Adjusted Contribution Margin caused by supply constraints and increased operating costs, as well as an increase in equity-based compensation expense, including a broad-based equity grant to the Wheels Up employee pilots; and an adjusted EBITDA of $(23.9) million, decreased $(15.9) million year-over-year.