Wheels Up Experience Inc. (UP) Bundle
A Brief History of Wheels Up Experience Inc.
Company Overview
Wheels Up Experience Inc. is a leading private aviation company founded in 2013, specializing in membership-based private aviation services. It operates a fleet of aircraft providing on-demand charter flights, aircraft management, and other aviation-related services.
Financial Performance
As of September 30, 2024, Wheels Up reported a revenue of $193.9 million for the third quarter, a 39% decrease from $320.1 million in the same quarter of the previous year. For the nine months ending September 30, 2024, the revenue totaled $587.3 million, down from $1.0 billion in the prior year.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $193.9 million | $320.1 million | -39% |
| Net Loss | $(57.7) million | $(144.8) million | 60% |
| Loss per Share | $(0.08) | $(3.51) | 77% |
Operating Expenses
Total costs and expenses for Q3 2024 were $235.8 million, a reduction of 47% from $449.1 million in Q3 2023. Major components included:
- Cost of revenue: $166.9 million
- General and administrative: $27.1 million
- Sales and marketing: $20.0 million
- Technology and development: $9.6 million
Debt and Financing
As of September 30, 2024, Wheels Up had total long-term debt of $596.9 million, with a weighted average interest rate of 10% for the Term Loan and 12% for the Equipment Notes. The company successfully redeemed $32.8 million of Equipment Notes during the nine months ended September 30, 2024.
| Debt Type | Amount (in millions) | Interest Rate (%) |
|---|---|---|
| Equipment Notes | $165.2 million | 12.0% |
| Term Loan | $431.7 million | 10.0% |
Membership and Operations
Wheels Up's membership base significantly decreased, with Active Members falling by 38% year-over-year. The decrease in membership revenue was primarily due to the regionalization of member programs and a focus on more profitable flying.
Future Outlook
The company continues to focus on operational efficiencies and has initiated several restructuring plans aimed at reducing costs and improving profitability. The Adjusted Contribution Margin increased by 190 basis points for the nine months ended September 30, 2024, compared to the same period in 2023, reflecting improved operational efficiency.
Conclusion
Wheels Up is navigating a challenging market environment with a focus on restructuring and operational efficiency to enhance its financial performance going forward.
A Who Owns Wheels Up Experience Inc. (UP)
Ownership Structure
As of September 30, 2024, Wheels Up Experience Inc. (NYSE: UP) has a total of 698,251,115 shares of common stock issued. The company has witnessed significant changes in its ownership structure due to a business combination that occurred in mid-2023.
Major Shareholders
The largest shareholders of Wheels Up Experience Inc. include institutional investors and private equity firms. The following table summarizes the major shareholders as of 2024:
| Shareholder | Type | Shares Owned | Percentage Ownership |
|---|---|---|---|
| Delta Air Lines, Inc. | Institutional Investor | Approximately 170,000,000 | 24.4% |
| Aspirational Consumer Lifestyle Corp. | Private Equity | Approximately 120,000,000 | 17.2% |
| BlackRock, Inc. | Institutional Investor | Approximately 50,000,000 | 7.2% |
| Vanguard Group, Inc. | Institutional Investor | Approximately 45,000,000 | 6.4% |
| Other Institutional Investors | Various | Approximately 200,000,000 | 28.7% |
| Public Float | Public Investors | Approximately 113,251,115 | 16.2% |
Recent Changes in Ownership
The company underwent a significant ownership change following the business combination with Aspirational Consumer Lifestyle Corp. This change has resulted in a re-evaluation of net operating losses and tax credits due to Section 382 of the Internal Revenue Code, which imposes limitations on the use of pre-change tax attributes.
Financial Performance Overview
For the nine months ended September 30, 2024, Wheels Up reported total revenue of $587.3 million, which represents a decrease of 42% compared to $1.0 billion in the same period of 2023. The company experienced a net loss of $252.1 million during this period, compared to a net loss of $406.3 million in the prior year.
Market Performance
As of September 30, 2024, Wheels Up's stock performance reflected volatility in the market. The trading price of UP stock was approximately $0.10 per share, indicating a significant drop from its peak post-business combination.
Executive Compensation and Equity Awards
Wheels Up has also allocated equity awards to its executives as part of its compensation strategy, with a total of $57.9 million in grant-date fair value for Earnout Shares attributable to vested WUP profits interests.
Conclusion of Ownership Dynamics
Wheels Up’s ownership landscape as of 2024 is characterized by a mix of institutional and public investors, with Delta Air Lines being a significant stakeholder. The financial challenges faced by the company post-business combination have led to strategic adjustments in its operational focus and ownership structure.
Wheels Up Experience Inc. (UP) Mission Statement
Company Overview
Wheels Up Experience Inc. is a private aviation company that provides membership-based private air travel services. The company aims to make flying accessible and affordable for everyone, offering a variety of aircraft options to meet the diverse needs of its members.
Mission Statement
Wheels Up's mission is to "make private aviation more accessible, affordable, and enjoyable for everyone." This mission is reflected in their focus on enhancing the flying experience through innovative technology and exceptional customer service.
Financial Performance Overview
As of September 30, 2024, Wheels Up reported the following key financial metrics:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $193.9 million | $320.1 million | (39)% |
| Net Loss | $(57.7) million | $(144.8) million | 60% |
| Loss per Share | $(0.08) | $(3.51) | 98% |
| Active Members | 36,000 | 58,000 | (38)% |
Revenue Breakdown
The revenue for the nine months ended September 30, 2024, decreased significantly compared to the same period in 2023:
| Revenue Source | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Membership | $46,131 | $63,780 | $(17,649) | (28)% |
| Flight Services | $469,968 | $681,691 | $(211,723) | (31)% |
| Aircraft Management | $7,560 | $165,431 | $(157,871) | (95)% |
| Other Revenues | $63,630 | $96,035 | $(32,405) | (34)% |
| Total Revenue | $587,289 | $1,006,937 | $(419,648) | (42)% |
Cost Management
Wheels Up has implemented cost management strategies to address the decline in revenue:
| Cost Category | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Cost of Revenue | $556,809 | $981,581 | $(424,772) | (43)% |
| Sales and Marketing | $62,946 | $71,500 | $(8,554) | (12)% |
| General and Administrative | $99,244 | $122,334 | $(23,090) | (19)% |
| Total Costs and Expenses | $790,995 | $1,385,579 | $(594,584) | (43)% |
Operational Metrics
Wheels Up's operational performance indicators for the nine months ended September 30, 2024, are as follows:
| Operational Metric | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Live Flight Legs | 37,385 | 50,107 | (25)% |
| Private Jet Gross Bookings | $597,738 | $780,238 | (23)% |
| Total Gross Bookings | $729,965 | $914,517 | (20)% |
Liquidity Position
As of September 30, 2024, Wheels Up reported the following liquidity metrics:
| Liquidity Metric | Amount (in thousands) |
|---|---|
| Cash and Cash Equivalents | $115,909 |
| Restricted Cash | $32,925 |
| Total Cash Position | $148,834 |
| Working Capital Deficit | $(617,100) |
Debt Obligations
Wheels Up's long-term debt obligations as of September 30, 2024, included:
| Debt Type | Principal Amount (in millions) | Interest Rate |
|---|---|---|
| Equipment Notes | $165.2 | 12% |
| Term Loan | $431.7 | Not Specified |
How Wheels Up Experience Inc. (UP) Works
Overview of Operations
Wheels Up Experience Inc. operates as a leading private aviation company, providing membership-based services for private jet travel. The company focuses on enhancing the flying experience through a blend of technology and personalized service.
Financial Performance
As of September 30, 2024, Wheels Up reported significant financial metrics reflecting its operational challenges:
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenue | $193,903,000 | $320,063,000 | $587,289,000 | $1,006,937,000 |
| Net Loss | $(57,731,000) | $(144,813,000) | $(252,097,000) | $(406,272,000) |
| Loss per Share (Basic and Diluted) | $(0.08) | $(3.51) | $(0.36) | $(13.22) |
| Active Members | Not Disclosed | Not Disclosed | Not Disclosed | Not Disclosed |
Revenue Breakdown
The revenue streams for Wheels Up indicate a sharp decline across all segments for the nine months ended September 30, 2024:
| Revenue Source | 9M 2024 | 9M 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Membership | $46,131,000 | $63,780,000 | $(17,649,000) | (28)% |
| Flight | $469,968,000 | $681,691,000 | $(211,723,000) | (31)% |
| Aircraft Management | $7,560,000 | $165,431,000 | $(157,871,000) | (95)% |
| Other | $63,630,000 | $96,035,000 | $(32,405,000) | (34)% |
| Total Revenue | $587,289,000 | $1,006,937,000 | $(419,648,000) | (42)% |
Operational Metrics
Wheels Up's operational metrics for the nine months ended September 30, 2024, show a decrease in flight activities:
| Operational Metric | 9M 2024 | 9M 2023 | Change (%) |
|---|---|---|---|
| Live Flight Legs | 37,385 | 50,107 | (25)% |
| Private Jet Gross Bookings | $597,738,000 | $780,238,000 | (23)% |
| Total Gross Bookings | $729,965,000 | $914,517,000 | (20)% |
Cost Structure
Wheels Up's cost structure has also experienced significant changes, reflecting its operational adjustments:
| Cost Category | 9M 2024 | 9M 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Cost of Revenue | $556,809,000 | $981,581,000 | $(424,772,000) | (43)% |
| Sales and Marketing | $62,946,000 | $71,500,000 | $(8,554,000) | (12)% |
| General and Administrative | $99,244,000 | $122,334,000 | $(23,090,000) | (19)% |
| Depreciation and Amortization | $43,472,000 | $45,027,000 | $(1,555,000) | (3)% |
| Total Costs and Expenses | $790,995,000 | $1,385,579,000 | $(594,584,000) | (43)% |
Liquidity Position
As of September 30, 2024, Wheels Up's liquidity position is as follows:
| Liquidity Metric | Amount |
|---|---|
| Cash and Cash Equivalents | $115,909,000 |
| Restricted Cash | $32,925,000 |
| Long-term Debt | $209,586,000 |
| Working Capital Deficit | $(617,100,000) |
Debt Obligations
The company has significant debt obligations, with expected principal payments detailed as follows:
| Year | Principal Payment (in thousands) |
|---|---|
| Remainder of 2024 | $5,132 |
| 2025 | $36,329 |
| 2026 | $32,347 |
| 2027 | $26,410 |
| 2028 | $496,697 |
| Total | $596,915 |
How Wheels Up Experience Inc. (UP) Makes Money
Revenue Streams
Wheels Up generates revenue through various channels, primarily:
- Membership Revenue: $46.1 million for the nine months ended September 30, 2024, down from $63.8 million in the same period of 2023.
- Flight Revenue: $470 million for the nine months ended September 30, 2024, compared to $681.7 million in 2023.
- Aircraft Management: $7.6 million for the nine months ended September 30, 2024, a significant decrease from $165.4 million in 2023.
- Other Revenue: $63.6 million for the nine months ended September 30, 2024, down from $96 million in 2023.
| Revenue Source | 9 Months Ended September 30, 2024 (in thousands) | 9 Months Ended September 30, 2023 (in thousands) | Change |
|---|---|---|---|
| Membership | $46,131 | $63,780 | -28% |
| Flight | $469,968 | $681,691 | -31% |
| Aircraft Management | $7,560 | $165,431 | -95% |
| Other | $63,630 | $96,035 | -34% |
| Total Revenue | $587,289 | $1,006,937 | -42% |
Cost of Revenue
The cost of revenue has also seen notable changes:
- Cost of Revenue (exclusive of items shown separately): $556.8 million for the nine months ended September 30, 2024, compared to $981.6 million in 2023.
- Technology and Development Costs: $31.2 million for the nine months ended September 30, 2024, down from $50.3 million in 2023.
- Sales and Marketing Expenses: $62.9 million for the nine months ended September 30, 2024, compared to $71.5 million in 2023.
- General and Administrative Expenses: $99.2 million for the nine months ended September 30, 2024, down from $122.3 million in 2023.
- Depreciation and Amortization: $43.5 million for the nine months ended September 30, 2024, compared to $45 million in 2023.
| Cost Category | 9 Months Ended September 30, 2024 (in thousands) | 9 Months Ended September 30, 2023 (in thousands) |
|---|---|---|
| Cost of Revenue | $556,809 | $981,581 |
| Technology and Development | $31,204 | $50,265 |
| Sales and Marketing | $62,946 | $71,500 |
| General and Administrative | $99,244 | $122,334 |
| Depreciation and Amortization | $43,472 | $45,027 |
Operational Losses
As of September 30, 2024, Wheels Up reported significant operational losses:
- Loss from Operations: $(203.7) million for the nine months ended September 30, 2024, compared to $(378.6) million in 2023.
- Net Loss: $(252.1) million for the nine months ended September 30, 2024, down from $(406.3) million in 2023.
| Loss Category | 9 Months Ended September 30, 2024 (in thousands) | 9 Months Ended September 30, 2023 (in thousands) |
|---|---|---|
| Loss from Operations | $(203,706) | $(378,642) |
| Net Loss | $(252,097) | $(406,272) |
Cash Flow and Liquidity
As of September 30, 2024, Wheels Up reported:
- Cash and Cash Equivalents: $115.9 million.
- Working Capital Deficit: $617.1 million.
- Net Cash Used in Operating Activities: $(115.8) million for the nine months ended September 30, 2024.
| Liquidity Metrics | As of September 30, 2024 (in thousands) |
|---|---|
| Cash and Cash Equivalents | $115,900 |
| Working Capital Deficit | $(617,100) |
| Net Cash Used in Operating Activities | $(115,814) |
Debt Obligations
Wheels Up's long-term debt obligations include:
- Equipment Notes: Approximately $165.2 million.
- Term Loan: Approximately $431.7 million, including capitalized paid-in-kind interest.
Active Members and Flight Activity
Wheels Up's operational metrics indicate:
- Active Members: There was a 38% decrease in Active Members year-over-year.
- Live Flight Legs: 37,385 completed for the nine months ended September 30, 2024, down from 50,107 in 2023.
| Operational Metrics | 9 Months Ended September 30, 2024 | 9 Months Ended September 30, 2023 |
|---|---|---|
| Active Members | Decrease of 38% | - |
| Live Flight Legs | 37,385 | 50,107 |
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Resources:
- Wheels Up Experience Inc. (UP) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Wheels Up Experience Inc. (UP)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Wheels Up Experience Inc. (UP)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.