Wheels Up Experience Inc. Q4 FY2023 earnings call

• Strengthened financial position with $490 million of committed capital led by Delta, ending the year with over $260 million of cash. - Beefed up management team with operations talent from Delta, having a strong operations team in Atlanta. - Improved customer service metrics with completion rates and on-time performance improving significantly, meeting or exceeding internal targets. - Made significant improvements on the commercial side by bringing in leadership resources for scheduling, pricing, and revenue management. - Three strategic pillars: become the best run and most reliable private aviation company, provide the broadest array of flexible and accessible aviation solutions, and invest in the customer experience to achieve positive adjusted EBITDA.

In 2023, Wheels Up delivered $1.2 billion of Flight Transaction Value (FTV). Programmatic flying represents just over half of FTV. The charter business is a large and growing component of FTV. Corporate flying represents over one quarter of FTV, and the company expects corporate to be a larger segment over time. Revenue for the fourth quarter was $246 million. Flight revenue was down year-over-year as the company focused on network strengths. Charter volumes were up approximately 20% year-over-year. Adjusted contribution margin was 1.2% in the quarter. Prepaid blocks were $207 million for the quarter, up over 150% sequentially.

• Expect to achieve positive adjusted EBITDA during the year. - Future cash balances driven by improving profitability through cost control, higher mix of charter and corporate flying, and managing working capital. - Block sales expected to increase over the year while remaining disciplined on capital expenditures. - Transitioning program offering and increasing mix of charter and corporate flying to support adjusted contribution margins.