Wheels Up Experience Inc. Q3 FY2024 earnings call

• George Mattson outlined the vision to combine private and premium commercial aviation, and mentioned the company's progress in stabilizing financials after previous sequential revenue declines. - Adjusted EBITDA loss was reduced by nearly 50% sequentially to $20 million. - Fleet modernization strategy announced, including transitioning to Embraer Phenom 300 series and Bombardier Challenger 300 series aircraft, with a plan to complete transition in ~3 years. - Highlighted strong traction in Delta corporate sales, with joint Delta accounts having the highest mix of block sales in September. - Added key hires: Chief Legal Officer, EVP of Enterprise Planning and Strategy, and SVP of Customer Experience. - Eric Cabezas discussed third quarter results, fleet modernization's positive impact, Bank of America transaction, and improved cash burn with operating cash flow improving sequentially and year-over-year.

Revenue for the third quarter was $194 million, roughly flat sequentially. Adjusted contribution margin was almost 15% in the third quarter, nearly double the second quarter's figure and the highest since going public in 2021. Prepaid blocks were $147 million for the quarter, up 86%, nearly double the level a year ago. Corporate block sales were up over 50% year-over-year. Private jet gross bookings were down 20% year-over-year but only 6% sequentially, while total gross bookings were down 16% year-over-year but only 4% sequentially in Q3.

• Anticipates fourth quarter adjusted EBITDA will show strong sequential improvement over the third quarter, though will absorb costs from fleet modernization strategy. - Expects full year 2025 to generate positive adjusted EBITDA. - Believes recent fleet announcements will drive strong customer interest and continued commercial momentum in Q4 and 2025. - Fleet modernization is expected to drive step-change improvement in operational performance, efficiency, and profitability margins per aircraft.