Investing.com | Editor Natashya Angelica
Published Mar 07, 2024 16:44
NEW YORK - Wheels Up Experience Inc. (NYSE:UP), a leading provider of on-demand private aviation services, reported financial results for the fourth quarter of 2023. The company announced a year-over-year decrease in total revenue to $246 million, a decline attributed partly to the divestiture of its Aircraft Management business.
Despite the revenue drop, the net loss for the quarter improved to $81 million, mainly due to the absence of a goodwill impairment charge that was present in the previous year.
Active Members and Active Users both saw a decrease of 21% and 22% respectively, while Live Flight Legs declined by 26%. However, the company achieved consistency in flight revenue per Live Flight Leg compared to the prior year. Wheels Up also noted operational improvements, including meeting its goals for Total Completion Rate and On-Time performance.
During the quarter, Wheels Up introduced the UP for Business program, a tailored private aviation solution for small and medium-sized enterprises, in partnership with Delta Air Lines (NYSE:DAL). The company also secured an additional $40 million in investor capital from Kore Capital and Whitebox Advisors, bringing the total new capital to $490 million.
Chief Executive Officer George Mattson remarked on the progress made operationally and commercially, citing rebuilding the sales pipeline and restoring customer confidence as key achievements. Chief Financial Officer Todd Smith highlighted the company's improved liquidity and the strategic partnership with Delta as positive steps toward long-term investment in the business.
The company's focus on profitability is reflected in its efforts to optimize cost structure and fleet management. With new leadership appointments bringing over 250 years of combined aviation experience, Wheels Up aims to lead the industry in performance and reliability.
Despite the reported net loss, the company's Adjusted EBITDA loss improved by $5.6 million year-over-year to $38.1 million, indicating progress in operational efficiency and spend reduction efforts.
This article is based on a press release statement from Wheels Up Experience Inc. and reflects the company's performance and strategic initiatives as of the end of the fourth quarter of 2023.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Written By: Investing.com
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