Wheels Up restates goodwill impairment; 2022 net loss increases

An increase in goodwill impairment by Wheels Up increases last year’s net loss but doesn’t affect EBITDA results or cash.

By Doug Gollan, April 1, 2023

In an 8-K filing after the market closed today, Wheels Up is restating its net income due to an increase in goodwill impairment.

The non-cash net loss for Q4 increases to $331 million from $239 million, while Q3 net loss widens from $86 million to $149 million.

According to the filing, the adjustments “were necessary to reflect the diminished fair value of (Wheels Up Legacy) as of the applicable measurement dates.”

They do not reflect its acquisition of Air Partner.

During its Q4 earnings call, Wheels Up reported a non-cash impairment charge of $132 million related to its acquisitions over the past several years.

As part of its growth strategy, it bought charter operators Delta Private Jets, TMC Jets, Gama Aviation Signature, Alante Air Charter, Mountain Aviation, and tech platform Avianis.

In its 10-K filing, Wheels Up’s net loss rose to $555 million in 2022 from $197 million in 2021.

The restatement, in conjunction with filing its full-year financials, doesn’t impact its previous EBITDA reporting.

A spokesperson tells Private Jet Card Comparisons, “These announcements do not affect our commitment to be adjusted EBITDA profitable in 2024. These are non-cash charges that do not change our cash position or adjusted EBITDA results for those quarters, as previously reported. We entered the first quarter of 2023 with $586 million in cash, which is a strong cash position.”

Revenues, which increased from $1.194 billion in 2021 to $1.580 billion, remain unchanged.

For Full Year 2023, Wheels Up is projecting a narrower $110-$130 million EBITDA loss from last year’s $185 million deficit.

It recently announced a $30 million reduction in non-operational staffing.

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