Wheels Up lost almost 50 cents for every dollar of revenue during the second quarter of 2023, according to its late Form 10-Q filed on Monday with the U.S. Securities and Exchange Commission. For the three-month period, the company posted revenues of $335 million and a net loss of $161 million. Cash-on-hand, which stood at $583 million at the end of 2022, had receded to just $152 million on June 30, putting Wheels Up precariously close to violating its financing covenants on $259 million in 12 percent interest aircraft loans secured last October.
Acting CEO Todd Smith said he was “extremely encouraged by this quarter’s performance,” citing improvements in on-time performance and reliability and “significant cost reductions and process improvements.” But one week after the company issued a going concern warning, announced the sale of its aircraft management business to Airshare, and obtained a $15 million, 10 percent interest, six-month note from 20 percent shareholder Delta Air Lines, Smith admitted, “We still have more work to do.”
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