The financial results for Wheels Up Experience, year-on-year for the second quarter of 2022, show that revenue increased 49 per cent to $425.5 million and prepaid block sales were up 187 per cent.
Over the course of the second quarter, active members grew 20 per cent to 12,667, driven by strong new member sales and existing membership retention, while active users grew 16 per cent to 13,119, primarily driven by the growth in active members. Live flight legs increased by 19 per cent to 21,705 with strong flight demand across all cabin classes, driven by the growth in active members and the acquisition of Air Partner.
Flight revenue per live flight leg was $13,088, up 12 per cent and up 16 per cent excluding Air Partner. The increase was the result of the introduction of fuel surcharges, higher pricing and a higher mix of larger cabin flying. A revenue increase of 49 per cent was driven by strong flight demand.
"Our strong market position and iconic brand helped drive record revenue in the second quarter, and another quarter of growth in prepaid blocks speaks both to the steadfast loyalty of our member base and the continued consumer demand for private aviation," says chairman and CEO Kenny Dichter. "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. Our team is moving quickly to enhance our technology-enabled marketplace platform, which we expect will provide us with a significant competitive advantage.”
"We continue to invest in technology and other areas of the business to drive improvement in our execution and operational capabilities," adds CFO Todd Smith. "We remain focused on delivering great service for our members and customers during our journey towards significant and sustainable profitability for our shareholders."
The entire Wheels Up controlled fleet is now managed through UP FMS, which aggregates the data for all flight operations under one consolidated dashboard. This platform sets the company on the path to fully automate aircraft and crew scheduling and more effectively and efficiently manage daily operations and shape demand. The company continues to make progress on streamlining operations. Combined with previously communicated efforts around certificate consolidation, these efforts will enhance the company's operational effectiveness and efficiency as well as customer service and are part of the plan to achieve positive adjusted EBITDA in 2024. Wheels Up also continues to make progress on pilot training and investing in maintenance hiring and capabilities to improve overall fleet availability.
Net loss increased by $63.8 million to a net loss of $92.8 million due to several factors, including 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. Adjusted EBITDA loss of $46.9 million decreased $38.4 million, due primarily to lower adjusted contribution margin.