Private aviation supplier Wheels Up in 2024 is seeing an “improving mix in our corporate business, thanks in part to the continued momentum in our Delta partnership, supported by our strong operational performance,” Wheels Up CEO George Mattson said during a Thursday earnings call. Still, first-quarter revenue dropped significantly year over year.
Delta Air Lines was one of the investors that propped up the company last August. Delta in 2020 also merged its Delta Private Jets business into Wheels Up.
Wheels Up cited “particular strength from corporate customers with corporate blocks representing the highest percentage of total blocks in our history,” Wheels Up CFO Todd Smith said, with “blocks” referring to prepaid credits. “This reflects the success of our efforts to increase our exposure in that important customer segment.
The first-quarter growth rate of corporate blocks exceeded 30 percent year over year, Matteson added. The company also reported a 40 percent year-over-year increase in block purchases valued at more than $1 million.
Delta in late April sent to its Delta Business subscribers an email noting that part of its partnership with Wheels Up enables corporate customers access to “exclusive benefits to fly private.” These customers can receive preferred rates on up to four round-trip flights with Wheels Up, among other benefits.
Wheels Up Q1 Metrics
Wheels Up reported first-quarter revenue of more than $197 million, down from the nearly $352 million reported a year prior. The company had a loss of about $97.4 million, slightly lower than the $100.9 million loss in Q1 2023.
Active members declined during the quarter 25 percent year over year to 9,155. Active users declined to about 10,200, down 23 percent from the more than 13,300 reported a year prior.
Live flights legs totaled nearly 11,800, down about 24 percent from the 15,400 reported in Q1 2023. Total private jet flight transaction value per live flight leg declined about 3 percent year over year to $16,315.
Wheels Up this week also announced that Southwest Airlines head of Southwest Business Dave Harvey would join the company later this month as chief commercial officer.
