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ATLANTA - Wheels Up Experience Inc. (NYSE:UP) reported better-than-expected fourth quarter results, with revenue declines slowing and margins improving significantly, sending shares up 4.6% in after-hours trading.
The private aviation company posted a net loss of $87.5 million, or $0.13 per share, for the fourth quarter, compared to a loss of $81.1 million, or $0.14 per share, in the same period last year. Revenue fell 17% year-over-year to $204.8 million, but showed sequential improvement from the third quarter.
Wheels Up’s adjusted contribution margin expanded dramatically to 19.3% in Q4, up from just 1.2% a year ago, driven by a 33% increase in fleet utility. The company said December was nearly breakeven on an adjusted EBITDA basis.
"After several quarters of consistent improvement, we ended 2024 in a much stronger financial position than we began," said CEO George Mattson. "This was also our first quarter of sequential revenue growth in nearly two years, thanks in part to record margins and further enhancements to operational efficiency."
The company is in the midst of modernizing its fleet, adding 18 new Phenom jets in 2024 while retiring 50 older aircraft. Wheels Up expects its first Challenger jets to enter service by April 1st.
Additionally, Wheels Up announced John Verkamp will join as the new Chief Financial Officer on March 31st, bringing over two decades of financial leadership experience from GE and GE Vernova.
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