Wheels Up Experience Reports Fourth-Quarter Losses Despite Record Revenue

Wheels Up Experience Inc. said its fourth-quarter revenue rose 64 percent. [Courtesy: Wheels Up]

Private aviation company Wheels Up Experience Inc. (NYSE: UP) said its fourth-quarter revenue rose 64 percent, driven in part by increasing membership in its programs and the growing market for on-demand aviation services. The company’s net loss increased as it continued to expand its operations.

For the quarter, the company’s net loss increased to $76.6 million, or 31 cents per share, from $34.1 million, or 19 cents per share, in the same period last year. Revenue increased to $345 million from $209.8 million a year earlier.

“I am pleased to report another quarter of record revenue, strong membership growth and retention, along with the best quarter in our history for prepaid block sales, which grew 80 percent to $540 million in the fourth quarter,” said Kenny Dichter, chairman and CEO of Wheels Up. He also said the increase in long-term commitments from customers gives the company “the confidence to invest in our growth while absorbing short-term margin pressures.”

The company said its active membership grew 31 percent to 12,040, driven in part by “continued success converting legacy jet card holders into Wheels Up members.” Its overall active users also increased 11 percent to 12,543.

For the year, the net loss totaled $197.2 million, or 93 cents per share, compared with a loss of $85.4 million, or 48 cents, per share in 2020. Full-year revenue rose to $1.19 billion from $695 million the year before.

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Jonathan Welsh is a private pilot who worked as a reporter, editor and columnist with the Wall Street Journal for 21 years, mostly covering the auto industry. His passion for aviation began in childhood with balsa-wood gliders his aunt would buy for him at the corner store. Follow Jonathan on Twitter @JonathanWelsh4