News Release

Wheels Up announces increased revenue for first quarter 2023

Wheels Up Experience, the leading on-demand charter operator in the United States, today announced its financial results for the first quarter, which ended March 31, 2023.

The first quarter 2023 highlights include;

- Revenue increased $26 million year-over-year to $352 million, a first quarter record

- Active members decreased 1% year-over-year to 12,285 in total

- Live flight legs decreased 13% year-over-year to 15,389 in total

- Net loss increased $12 million year-over-year to $101 million

- Adjusted EBITDA was flat year-over-year with a loss of $49 million

"As we position Wheels Up for future success, we expect the programme changes we announced today will allow us to continue to scale and evolve our product offering to deliver world-class service profitably," said Interim CEO Todd Smith. "Our revised product offering will improve Wheels Up's competitiveness and service delivery, as well as the flight experience for members and customers. These changes are positive steps for Wheels Up, and we are committed to making the decisions necessary to improve this business to deliver for our customers, employees and shareholders."

The company also announced key executive changes to lead the next stage of growth and profitability for Wheels Up, including naming current board member Ravi Thakran as executive chairman.

"I am excited to work with the team at Wheels Up, especially Todd in his expanded capacity as Interim CEO," said Thakran. "The board would like to thank our founder Kenny Dichter for his steadfast commitment and dedication to the organisation. His innovative vision for private aviation has enabled us to build an iconic brand and a strong base of loyal members and teammates that positions us very well moving forward."

Announcement details;

- Retained a leading executive search firm to identify an experienced operator to serve as permanent CEO and drive next phase of the company's journey.

- Announced programme changes to align guaranteed service in regions where Wheels Up has a significant network density advantage and margins are highest. It is anticipated that members and customers will benefit from better rates in many areas and improved service nationwide.

- Enhanced the company's value proposition for corporate customers through a new, industry-leading programme with Delta Air Lines to benefit business fliers of both companies through volume-based preferential rates on Wheels Up flights. Delta will continue to provide Wheels Up customers unique access and exclusive benefits such as earning SkyMiles, SkyBonus points and Medallion Status.

- Evaluating the disposition of certain non-strategic assets, as the company continues to focus its core charter business.

- Member operations centre in Atlanta, Georgia, which is expected to open May 15, will drive improved operations, customer communications and service.

Financial and operating highlights for the first quarter:

- Active members decreased 1% year-over-year to 12,285 offset by a higher mix of core members, in line with Wheels Up's conscious efforts toward more profitable flying.

- Active users increased 6% year-over-year to 13,336 primarily driven by growth in core members and due to the acquisition of Air Partner.

- Live flight legs decreased 13% year-over-year to 15,389 reflecting industry conditions and the company's efforts to focus on profitable flying.

- Flight revenue per live flight leg increased 12% year-over-year to $15,060, and up 17% year-over-year excluding Air Partner, primarily as a result of its fiscal 2022 programme changes, which included higher pricing and the introduction of a fuel surcharge in the second quarter.

- Revenue increased 8% year-over-year primarily driven by increased aircraft sales and due to acquisition of Air Partner.

- Net loss increased by $11.8 million year-over-year primarily driven by interest expense incurred on its Equipment Notes issued in October 2022.

- Adjusted EBITDA loss of $48.9 million, relatively flat year-over-year.