Wheels Up Experience Inc. reported third‑quarter 2025 results that showed revenue of $185.5 million, a 4 % year‑over‑year decline, and a net loss of $83.7 million, an increase from the $57.7 million loss in the same period last year. The revenue drop was largely driven by a 26 % decline in flight revenue from discontinued Connect and Pay‑As‑You‑Fly members, while corporate and individual core memberships grew, partially offsetting the loss in legacy segments.
The company’s adjusted EBITDA for the quarter was a loss of $23.2 million, widening from the $20.0 million loss reported in Q3 2024. The compression reflects higher operating costs and the ongoing transition to a modernized fleet, including non‑recurring fleet‑modernization expenses of $8.7 million that impacted the gross loss. Adjusted contribution margin fell to 12.7 % from 14.8 % in Q3 2024, underscoring the cost pressure associated with the fleet upgrade.
Revenue by segment shows that on‑demand charter bookings increased 14 % year‑over‑year, contributing $62 million in corporate membership sales and driving a 5 % rise in total gross bookings. The Delta partnership continues to support record corporate membership fund sales, while the discontinuation of legacy programs has reduced flight revenue but freed capacity for higher‑margin core services.
Management highlighted that cost‑saving initiatives are expected to exceed the original $50 million goal, with an anticipated $70 million annual run‑rate benefit beginning in Q1 2026. CEO George Mattson noted that “the Q3 fleet‑modernization charges primarily consist of incremental aircraft rent and maintenance costs incurred as we exit our legacy fleets,” and emphasized that the company is encouraged by the financial and operating performance of the new fleet.
Looking ahead, Wheels Up reiterated its outlook for positive adjusted EBITDAR performance in 2026, citing continued momentum in corporate membership sales and the expansion of its fleet‑modernization program. The company’s focus on cost discipline, strategic partnerships, and a streamlined business model positions it for eventual profitability, though near‑term challenges from fleet transition costs remain.
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