Wheels Up Experience Inc. (NYSE: UP) has reported its financial results for the fourth quarter of 2023, which ended on December 31, 2023. The company's total revenue decreased by $162 million year-over-year to $246 million, partly due to the divestiture of the aircraft management business. The adjusted contribution also decreased by $16 million year-over-year to $3 million.
The net loss decreased year-over-year to $81 million, primarily due to the absence of a goodwill impairment charge in the current quarter. Adjusted EBITDA improved by $6 million year-over-year to a loss of $38 million.
There have been notable changes in various financial and operating metrics. The number of active members decreased by 21% year-over-year to 9,947. Active users decreased by 22% year-over-year to 10,744, and live flight legs decreased by 26% year-over-year to 14,374. Despite these declines, the flight revenue per live flight leg remained relatively consistent year-over-year at $14,079.
For the twelve months ended December 31, 2023, Wheels Up reported a 21% improvement in adjusted EBITDA, which decreased by $39.4 million year-over-year to $145.9 million. The company's net loss also decreased by 12% year-over-year to $487.4 million.
Wheels Up has made significant progress in various initiatives, including introducing a new program tailored for small and medium-sized enterprises, adding $40 million of investor capital, and achieving or exceeding goals for total completion rate and on-time performance in the fourth quarter.
The company also announced a number of new leadership appointments with a combined over 250 years of aviation experience to the company’s operations team as part of its mission to lead the industry in performance and reliability.
Wheels Up is focused on optimizing its cost structure and fleet to improve profitability and believes it is well-positioned to continue investing in its business for the long term, especially with the improving liquidity in the fourth quarter and its partnership with Delta.
Wheels Up is a leading provider of on-demand private aviation in the U.S., offering a complete global aviation solution with a large and diverse fleet and a global network of safety-vetted charter operators, all backed by a commitment to safety and service. The company also provides freight, safety and security solutions, and managed services to individuals, industry, government, and civil organizations.
As a result of these announcements, the company's shares have moved -10.2% on the market, and are now trading at a price of $2.47. Check out the company's full 8-K submission here.
