Wheels Up cuts Q2 losses, plans cost cuts as it seeks profitability

Wheels Up is seeking to save around $50 million as the Delta Air Lines-backed private jet provider says it is continuing to make progress, cutting losses while boosting revenue from its partnership with the airline.

Revenue was down 3% year-over-year in the second quarter of 2025 at $189.6 million.

The company reduced net loss by 15% to $82.3 million compared to Q2 last year.

Adjusted EBITDA loss was reduced by 22% to 29.0 million compared to a year ago.

Gross bookings, a non-GAAP measurement where Wheels Up attributes the gross revenue of off-fleet charter revenue, were essentially flat at $262 million, down $2 million year-over-year.

Adjusted Contribution Margin showed a 12.2% improvement.

Wheels Up ended the quarter with “over $200 million in liquidity, consisting of $107 million of cash and cash equivalents and our $100 million undrawn revolving credit facility.”

Completion rate for flights stayed at 98% while on-time performance dipped from 91% to 88% year-over-year.

Wheels Up Cost Reductions

Wheels Up also said it will implement “efficiency, productivity, and overhead cost reductions” from its fleet modernization plan to “drive approximately $50 million in annual cash cost savings.”

The full impact of those initiatives won’t be evident until the second half of 2026.

Wheels Up CEO George Mattson, in a letter to investors, wrote:

‘Over the past several quarters, our top priority has been realigning our product, fleet, and operations to better meet customer demand, while advancing our strategic partnership with Delta. This focused execution has strengthened our financial position and laid a strong foundation for sustained, profitable growth. I’m incredibly proud of how our team has continued to deliver exceptional service and operational excellence, even as we invest in modernizing and simplifying our fleet. As we scale our premium jet offering, deepen our collaboration with Delta, and drive greater productivity and efficiency, we remain committed to transforming our business and delivering the most accessible and flexible portfolio of private aviation solutions in the industry.’

Mattson pointed to its fleet transition.

Currently, 17% of its fleet is now premium Phenom 300 light jets or Challenger 300 and Challenger 350 super-midsize jets.

The letter to investors from Mattson shows it growing to 44% of its fleet by the end of the year.

Per the data, its workhorse King Air 350s will still make up 22% of the fleet, down from 35% at the end of 2023.

Mattson also pointed to benefits in its sales integration with Delta, writing corporate membership fund sales were its “fastest growing channel, with an increase of more than 25% year over year in the second quarter.”

He also highlighted leisure sales potential from Delta frequent flyers, saying, “Thousands of Delta SkyMiles customers have engaged with us to learn more about the potential for accessing Wheels Up.”

Membership Fund Sales

While Wheels Up has been shifting its focus away from its strictly programmatic past, membership fund sales still make up a significant part of its business.

It previously referred to the deposits for future flights as Prepaid Blocks.

Its SEC filing reports $260 million in Membership Fund sales for the first half of 2025, which allows us to deduce that $127 million in deposits were taken in Q2.

That is down from $145 million in Q2 of 2024.

Wheels Up Membership Fund Sales by Quarter (2021-25 by Quarter)

Source:  Wheels Up

In terms of revenue from its annual membership fee, you pay to become a member, that fell to $7.5 million in Q2 from $16.0 million a year ago.

In its SEC filing, the company said, “The decrease in membership revenue was primarily driven by a decrease in members year-over-year due largely to streamlining our membership offering and shifting less frequent fliers to our charter offerings.”

Wheels Up Q2 2025 Financials

Speaking about financials, Mattson said, “Despite the slight decrease in GAAP Revenue, we continue to make progress toward our goal of achieving sustainable profitability.”

Wheels Up Q2 Earnings

• Revenue decreased to $189.6 million from $196.3 million
• Loss from operations decreased to $59.6 million from $79.1 million
• Net Loss decreased to $82.3 million from $97.0 million
• Adjusted EBITDA loss decreased to $29.0 million from $37.4 million
• Adjusted EBITDAR loss decreased to $25.1 million from $28.8 million

Wheels Up 2025 Q2, H1 Financials

Source:  Wheels Up

During Delta’s Q2 earnings release last month, its CEO Ed Bastian continued his support for Wheels Up.

Near the end of the segment with CNBC’s Phil LeBeau, the network’s wealth reporter, Robert Frank, joined.

Frank asked Bastian, with continued losses at Wheels Up, why Delta Air Lines shareholders should remain supportive.

Bastian told listeners, “It was in pretty dire shape when we and (Certares Management LLC, Knighthead Capital Management LLC, and Cox Enterprises) stepped in.”

He added, “We said at the time it was going to take a couple years to get it turned around, stabilized.”

Bastian said, “We’re doing that…We are seeing meaningful improvements.”

Around 20 Delta executives have been seconded to Wheels Up, Bastian said.

Mattson, the Wheels Up CEO since September 2023, is a former longtime Delta board member.

Wheels Up Stock Price

In early morning trading, Wheels Up stock is at $1.40.

Its 52-week range is from $0.74 to $2.78.