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Tuesday, February 27, 2024

The newly public Wheels Up (NYSE:UP) recently announced results for the second quarter, which ended June 30, 2021. The highlights show revenue increased 113% year-over-year to $285.6 million, live flight legs increased 146% year-over-year to 18,234 and active members grew 47% year-over-year to 10,515 in total.

Wheels Up has grown rapidly, through both organic growth and more recently by a series of acquisitions including Travel Management Company, Delta Private Jets and Mountain Aviation. Just this summer it completed a merger with Aspirational Consumer Lifestyle Corp. and its shares commencing trading on the New York Stock Exchange on July 14, 2021 under the "UP" ticker symbol. Theses latest results are the first since it went public, so provide an insight into how the company is doing.

"The accelerating growth in our revenue is a great way to mark our first reported results as a public company and creates a solid foundation to build upon," said Kenny Dichter, Wheels Up Chairman & CEO. "Our iconic brand, combined with our compelling membership model and exclusive partnerships and experiences, have uniquely positioned us to gain market share during this time of robust demand. As always, I want to recognize our hardworking team for their tireless efforts and thank our loyal Members and Customers for their trust in us."

"The demand in the first half of the year has increased across all cabin classes and our diverse fleet of aircraft is contributing to our success in attracting new Members, retaining existing Members and driving an increase in live flight legs," said Eric Jacobs, Wheels Up Chief Financial Officer. "Our strategic initiatives are resonating with Members and Customers, and we believe that our investments in operations, technology, product development and customer service will help ensure a premium experience and drive future operating efficiencies."

Overall Active Users grew 27% year-over-year to 11,281, this includes Active Members. In other words there were just over 700 people who used the Wheels Up platform and aircraft but who have not joined as a member.

The revenue per Live Flight Leg increased 3% year-over-year to $11,663. Wheels Up says this is a result of a higher mix of larger cabin flying and partially offset by a decrease in average flight stage length.

During the quarter, Wheels Up partnered with American Express as the exclusive private jet partner for the new American Express Premium Private Jet Program for all Platinum Card Members.