Private aviation provider Wheels Up has reported a second-quarter net loss of $82.3 million, as the company continues its push toward profitability through fleet modernisation and operational efficiency.
Despite the loss, the figure represents a 15% year-on-year improvement, suggesting progress in the group’s ongoing turnaround efforts.
Revenue for the quarter ending 30 June stood at $189.6 million, a 3% decline compared to the same period in 2024. However, gross flight bookings held steady at $261.9 million, and adjusted EBITDA losses narrowed by 22% to $29 million.
The New York-based company, backed by Delta Air Lines, is pursuing $50 million in cost savings as it works to enhance returns through a more streamlined and modernised fleet.
During Q2, it retired the last of its Cessna Citation CJ3s, and now counts Bombardier Challengers and Embraer Phenom aircraft as making up 20% of its controlled fleet.
In the upcoming quarter, Wheels Up plans to introduce three additional Challenger 300s, continuing its transition to larger, more efficient aircraft designed to boost aircraft utilisation and improve financial margins.
Corporate membership sales are currently the company’s fastest-growing segment, increasing 25% year-on-year, while strategic partnerships—particularly with main investor Delta Air Lines—are reportedly driving greater demand across its network.
Chairman and CEO George Mattson, a former Delta board member, took the helm in 2023 following the departure of Wheels Up founder Kenny Dichter after the company posted a $555 million loss in 2022. Since then, the leadership has focused on reshaping the business model and reducing operational complexity.
Gross profits for Q2 rose by $13 million to $2.2 million, driven in part by a 10% improvement in aircraft utilisation. The adjusted contribution margin climbed four points to 12.2%, indicating early signs that the company’s long-term strategy may be bearing fruit.
Still, with 33 fewer aircraft in its controlled fleet and profitability yet to be achieved, Wheels Up faces further pressure to deliver on its turnaround plan amid intensifying competition in the private aviation market.