Wheels Up Completes Fleet Modernization as Charter Bookings Fall

The Tip Desk · August 4, 2026 · 4 min read

GAAP revenue was $182.0 million in the second quarter, down 4% year over year, while Adjusted EBITDAR loss narrowed 27% to $19.9 million.

Wheels Up Experience Inc. (UP) retired its legacy aircraft in April and said premium Phenom and Challenger jets now make up 100% of its active controlled fleet, a fleet-modernization finish that the company framed as the quarter’s defining operating turn.

GAAP revenue was $182.0 million, down 4% year over year, after a 5% year-over-year decline in the first quarter. The company attributed the drop primarily to 2025 dispositions of non-core services businesses. Private jet Flight revenue was flat, as demand more than doubled for premium aircraft with the controlled Phenom and Challenger fleet expanding from 22 to 40 year over year, offsetting legacy fleet retirements.

Total Gross Bookings were $241.8 million, down 8% year over year, reversing a 10% year-over-year increase in the first quarter. Wheels Up said the decline primarily reflected lower U.S. private jet charter volume driven by transitory process and technology inefficiencies from its sales-force transformation. Live Flight Legs fell 28% to 8,649 from 11,971, while Private Jet Gross Bookings per Live Flight Leg rose 27% to $22,048 from $17,403.

Gross profit was $9.6 million, up $7 million versus the year-ago period, after a $2.0 million gross loss in the first quarter. Results were impacted by about $5 million of business transformation-related expenses. The company estimated approximately 6 points of year-over-year margin pressure came from the prior year sale of non-core services businesses (~4 points) and transitory inefficiencies from the ongoing business transformation (~2 points). Adjusted Contribution was $22.5 million, down 2% from the prior year period, and Adjusted Contribution Margin was 12.4%, versus 12.2% a year earlier.

Adjusted EBITDAR loss narrowed to $19.9 million, a 27% improvement versus the year-ago period, after a 3% improvement in the first quarter. Wheels Up attributed the latest gain to a streamlined Phenom and Challenger fleet that produced a 20% increase in Utility. Utility rose to 49.5 hours from 41.1 hours a year earlier. Legacy fleet Utility fell to 8.0 hours from 40.6 hours as those aircraft were retired from revenue service in April 2026, while Challenger Utility rose to 62.5 hours from 54.0 hours and Phenom Utility declined to 46.9 hours from 49.0 hours.

Net loss widened to $107 million, or $(2.97) a share, from $83.0 million, or $(2.29) a share, in the first quarter. The company said the year-over-year increase was primarily a combined $13 million rise in interest expense and aircraft lease costs plus a $13 million non-cash impairment on legacy fleet retirement. Interest expense rose to $32.95 million from $22.08 million a year earlier. The company recorded a $12.74 million impairment on legacy fleet retirement and a $0.51 million loss on divestiture. Sales and marketing rose 10% to $26.75 million.

Completion Rate improved to 99.4% from 97.5% a year earlier, and On-Time Performance (A-30) rose to 86.8% from 80.3%. On-Time Performance (D-60) was 94.4% versus 88.8% and the 3+ Hour Delay Rate fell to 1.2% from 2.8%. Through the end of July 2026 the company had recorded 119 Brand Days with a perfect Completion Rate and no cancellations, surpassing its full-year goal.

Signature Membership grew to more than 1,200 members since launch and now represents over 50% of the active member base. The corporate channel grew more than 8% year over year across membership and charter offerings combined.

During the second quarter, Wheels Up closed a new $100 million term loan from its lead investor group and a new $68 million aircraft financing facility arranged by an AIP Capital subsidiary. Subsequent to quarter-end, Delta and the company extended the availability period for Delta’s $100 million revolving credit facility by two years, to September 20, 2028. Cash and cash equivalents were $86.31 million at June 30, 2026, down from $133.93 million at December 31, 2025. Long-term debt, net, was $581.18 million versus $316.36 million at year-end 2025.

The company said it substantially completed initiatives expected to deliver approximately $70 million or more in annual cash cost savings during the second quarter of 2026, with remaining discrete efficiency opportunities expected by year-end. It also announced plans to implement Surf Air Mobility’s Enterprise BrokerOS platform, powered by Palantir, to replace multiple legacy systems in the charter booking process. Chief Executive Officer George Mattson said the company enters the second half of the year with increasing confidence in its ability to execute against its plan.