November 12, 2024
Private jet flight provider Wheels Up, which is trying to show customers and the market a turnaround, will announce its Q2 financial results on Aug. 9, 2023.
Wheels Up will hold its 2023 Second Quarter earnings call at 10 am on Aug. 9, 2023.
The private jet flight provider made big news before its Q1 earnings call on May 8, 2023.
It announced Founder, Chairman, and CEO Kenny Dichter was stepping aside.
He was replaced as Interim CEO by CFO Todd Smith.
Board Member Ravi Thakran was named Executive Chairman.
At the same time, it said it would reduce the area it offers members guaranteed capped rates.
The new service area is designed to cut repositioning flights and recovery time, reducing costs for the company and flight prices for members.
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Since then, it has had to twice answer reports that it was preparing to seek bankruptcy protection following reports by CNBC and The Wall Street Journal.
It also got a boost from the CEO of Delta Air Lines, Ed Bastian, its largest shareholder, who said he backs turnaround plans.
It also executed a 10-to-1 reverse stock split to prevent a delisting by The New York Stock Exchange.
The New York-based flight provider, the third-largest in the U.S., recently launched a lawsuit against FlyExclusive, the fifth-largest, after the latter terminated a contract to fly Wheels Up customers.
Of course, the big news on Aug. 9 will be the Q2 financial results.
While revenues in Q1 increased by $26 million to $352 million, net loss increased by $12 million to $101 million.
In 2022, full-year revenues jumped 32% to $1.58 billion.
However, the 2022 full-year net loss increased from $197 million to $508 million.
Smith has promised to be profitable in 2024 on an Adjusted EBITDA basis.
Q1 Adjusted EBITDA was a $49 million loss.
Importantly, Cash and Cash Equivalents also fell from $586 million to $363 million.
Members have nearly $1 billion in money paid for future flights, and Wheels Up relies on the continued sale of blocks – payments in advance for flights at contracted rates – to boost operating funds.
With the slimmed-down Primary Service Area, Wheels Up is no longer offering revenue guidance.
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Wheels Up has said it will sell non-core assets to help raise money.
So far, it has only announced a licensing agreement of its Avianis platform to Portside.
Terms were not disclosed.
In a June presentation, Smith said the company has various liquidity options, including selling aircraft.
Both Smith and Thakran will be under pressure to show results, both in financials and operations.
A new operations center, which recently opened in Atlanta, is designed to improve reliability as it merges its multiple charter operator acquisitions.
Asia-based Thakran was granted a $665,000 base salary and $800 per night New York City hotel allowance, plus 50 hours of free flight time.
Smith has already been given an annualized $150,000 raise.
Both were retroactive to their appointments.
Wheels Up cut staff in March in a move designed to save $30 million.
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