Premium fleet and Signature Membership growth continue to drive commercial, operational and financial progress
Over 100 Brand Days with zero cancellations year-to-date, marking a new reliability milestone
Multi-year extension of Delta's $100M revolving credit facility commitment reflects continued support from lead investor group
ATLANTA, Aug. 4, 2026 /PRNewswire/ -- Wheels Up Experience Inc. (NYSE:UP) today announced financial results for the second quarter of 2026. Highlights of the quarter, including GAAP results, non-GAAP financial measures and key operating metrics, are on pages three to five and incorporated herein.
Commentary from Wheels Up's Chief Executive Officer George Mattson about the Company's financial and operating results for the second quarter of 2026 is included in an Investor Letter that can be found on Wheels Up's Investor Relations website at https://investors.wheelsup.com.
Second Quarter 2026 Results
-- GAAP Revenue of $182.0 million, a reduction of 4% year over year, driven
primarily by the disposition of non-core services businesses in 2025.
Private jet Flight revenue was flat for the quarter, as demand more than
doubled for premium aircraft with the controlled fleet of Phenoms and
Challengers expanding from 22 to 40 year over year, offsetting legacy
fleet retirements.
-- Total Gross Bookings (the total gross spend on private jet flight
services, including private jet charter, group charter and cargo
services) of $241.8 million, down 8% year over year, primarily reflecting
lower U.S. private jet charter volume driven by transitory process and
technology inefficiencies from our sales force transformation.
-- Gross profit of $9.6 million improved by $7 million versus the prior year
period, with results impacted by approximately $5 million of business
transformation-related expenses. Net loss of $107 million, or $(2.97)
per share, increased by $25 million versus the prior year period,
primarily due to a combined $13 million increase in interest expense and
aircraft lease costs, along with a $13 million non-cash impairment charge
associated with the legacy fleet retirement.
-- Adjusted Contribution of $22.5 million, a 2% decline from the prior year
period, and Adjusted Contribution Margin of 12.4%, versus 12.2% in the
prior year period. The Company estimates 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 EBITDAR loss of $19.9 million, a 27% improvement compared to the
prior year period, driven by the streamlined fleet of Phenoms and
Challengers that produced a 20% increase in Utility in the second quarter
of 2026.
"Wheels Up made meaningful progress this quarter, completing our fleet modernization, reaching record levels of operational reliability, strengthening our Delta partnership, and building momentum with our Signature Membership," said George Mattson, Wheels Up Chief Executive Officer. "The entire Wheels Up team is focused on delivering a great experience for our customers while also making the business more efficient, scalable and profitable. With the legacy fleet transition behind us and technology investments like BrokerOS expected to drive growth in our charter business, we enter the second half of the year with increasing confidence in our ability to execute against our plan and create long-term value for shareholders."
Business Highlights
-- Realizing benefits of fleet transformation. Premium Phenom and Challenger
jets now comprise 100% of Wheels Up's active controlled jet fleet. With
legacy fleets fully retired as of April, customers now benefit from a
consistent premium onboard experience as the Company drives fleet
simplification and scale to maximize operating efficiency and fleet
profitability.
-- Continued commercial momentum. Our Wheels Up Signature Membership
program has grown to more than 1,200 members(1) since launch and now
represents over 50% of our active member base. Signature members fly more
hours at higher rates on average, strengthening our revenue mix and
improving visibility into future demand. The Delta partnership also
continues to deliver tangible results, most visibly in the corporate
channel, which grew more than 8% year over year across our membership and
charter offerings combined.
-- Maintaining best-in-class operational excellence. Wheels Up achieved a
Completion Rate of 99.4% (up nearly 2 points year over year) and On-Time
Performance (A-30), or arrival within 30 minutes of the scheduled time,
of 86.8% (up more than 6 points year over year). Through the end of July
2026, the Company had recorded 119 Brand Days, or days with a perfect
Completion Rate and no cancellations, surpassing its full year goal.
-- Leveraging technology in our charter business. Wheels Up announced plans
to implement Surf Air Mobility's Enterprise BrokerOS platform, powered by
industry-leading AI technology partner, Palantir. BrokerOS will replace
multiple legacy systems and enable enhanced charter solutions for
customers and faster, more informed decision-making across the charter
booking process.
-- Investing in our fleet, including branded liveries and interiors with
high-speed, satellite WiFi. Wheels Up's entire active controlled fleet
is now equipped with satellite WiFi, allowing customers to access
high-speed, streaming quality internet service on all of its premium
Phenom and Challenger aircraft.
-- Continued lead investor support and completed financings. During the
second quarter, the Company closed on two previously announced financial
transactions -- a new $100 million term loan provided by its lead
investor group and a new $68 million aircraft financing facility arranged
by a subsidiary of AIP Capital -- supporting its multi-year growth plans.
Subsequent to the end of the quarter, Delta and the Company extended the
availability period for Delta's $100 million revolving credit facility
commitment by an additional two years, to September 20, 2028.
-- Actions to improve productivity and efficiency. As previously announced,
Wheels Up continues to implement initiatives expected to deliver
approximately $70 million or more in annual cash cost savings through
operational efficiencies, productivity improvements and overhead
reductions. The Company substantially completed these initiatives during
the second quarter of 2026 and continues to implement discrete efficiency
and cost control opportunities across its business and operations, which
are expected to be realized by the end of 2026.
__________________
(1) Reflects Wheels Up Signature members and Custom Enterprise Solutions
accounts modeled after Wheels Up Signature Membership.
Financial and Operating Highlights(1)
Three Months Ended June 30,
--------
(in thousands, except Live
Flight Legs, Private Jet Gross
Bookings per Live Flight Leg,
Utility and percentages) 2026 2025 % Change
-------------- -------------- --------
Total Gross Bookings $ 241,824 $ 261,948 (8) %
Private Jet Gross Bookings $ 190,690 $ 208,326 (8) %
Live Flight Legs 8,649 11,971 (28) %
Private Jet Gross Bookings per
Live Flight Leg $ 22,048 $ 17,403 27 %
Utility(2) 49.5 41.1 20 %
Completion Rate 99.4 % 97.5 % 2 pp
On-Time Performance (A-30) 86.8 % 80.3 % 6 pp
On-Time Performance (D-60) 94.4 % 88.8 % 6 pp
3+ Hour Delay Rate 1.2 % 2.8 % (2) pp
Six Months Ended June 30,
--------
2026 2025 % Change
-------------- -------------- --------
Total Gross Bookings $ 508,991 $ 503,850 1 %
Private Jet Gross Bookings $ 383,849 $ 413,619 (7) %
Live Flight Legs 16,442 22,866 (28) %
Private Jet Gross Bookings per
Live Flight Leg $ 23,346 $ 18,089 29 %
Three Months Ended June 30,
------------ --------
(In thousands,
except
percentages) 2026 2025 $ Change % Change
-------------- ------------- ------------ --------
Revenue $ 181,999 $ 189,637 $ (7,638) (4) %
Gross profit $ 9,565 $ 2,192 $ 7,373 336 %
Adjusted
Contribution $ 22,545 $ 23,070 $ (526) (2) %
Adjusted
Contribution
Margin 12.4 % 12.2 % N/A 0.2 pp
Net loss $ (107,249) $ (82,299) $ (24,950) (30) %
Adjusted EBITDA $ (26,162) $ (31,218) $ 5,056 16 %
Adjusted EBITDAR $ (19,934) $ (27,300) $ 7,366 27 %
Six Months Ended June 30,
------------ --------
(In thousands,
except
percentages) 2026 2025 $ Change % Change
-------------- ------------- ------------ --------
Revenue $ 350,921 $ 367,167 $ (16,246) (4) %
Gross profit $ 7,577 $ 1,088 $ 6,489 596 %
Adjusted
Contribution $ 37,319 $ 45,511 $ (8,192) (18) %
Adjusted
Contribution
Margin 10.6 % 12.4 % N/A (2) pp
Net loss $ (190,207) $ (181,612) $ (8,595) (5) %
Adjusted EBITDA $ (56,716) $ (61,881) $ 5,165 8 %
Adjusted EBITDAR $ (40,726) $ (52,605) $ 11,879 23 %
Net cash used in
operating
activities $ (191,263) $ (110,804) $ (80,459) (73) %
__________________
(1) For information regarding Wheels Up's use and definitions of our key
operating metrics and non-GAAP financial measures, see "Definitions of
Key Operating Metrics," "Definitions of Non-GAAP Financial Measures,"
"Reconciliations of Non-GAAP Financial Measures" and "Update to Non-GAAP
Definitions - Adjustments for Accounting Gains and Losses from Aircraft
Sales" sections herein.
(2) For the three months ended June 30, 2026, Utility for the Embraer Phenom
300 series, Bombardier Challenger 300 series and legacy fleet aircraft in
our controlled fleet were 46.9, 62.5 and 8.0 hours, respectively. For the
three months ended June 30, 2025, Utility for the Embraer Phenom 300
series, Bombardier Challenger 300 series and legacy fleet aircraft in our
controlled fleet were 49.0, 54.0 and 40.6 hours, respectively. The
decline in Utility of our legacy fleet aircraft during the three months
ended June 30, 2026 reflects our decision to retire those aircraft from
revenue service in April 2026.
N/A Not applicable
About Wheels Up
Wheels Up is a leading global provider of on-demand private aviation with a large, diverse fleet and a network of safety-vetted charter operators, all committed to safety and service. Customers access charter and membership programs and premium commercial travel benefits through a strategic partnership with Delta Air Lines. Wheels Up also provides cargo services to a range of clients, including individuals and government organizations, via Air Partner Cargo. With the Wheels Up app and website, members can easily search, book, and fly. For more information, visit www.wheelsup.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains certain "forward-looking statements" within the meaning of the U.S. federal securities laws. Forward-looking statements provide current expectations of future circumstances or events based on certain assumptions and include any statement, projection or forecast that does not directly relate to any historical or current fact. Forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside of the control of Wheels Up Experience Inc. ("Wheels Up", "we", "us", "our" or the "Company"), that could cause actual results to differ materially from the results discussed in the forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding: (i) Wheels Up's growth plans, market conditions in the private aviation industry and the anticipated success of Wheels Up's sales efforts and service offerings, including its membership program and charter solutions; (ii) Wheels Up's ongoing business transformation, including its efforts to scale its premium aircraft fleet, dispose of retired legacy aircraft and implement operational efficiency and cost control initiatives, and its ability to execute such transformation on the timeline that it currently anticipates and realize the anticipated commercial, financial and operational benefits during and after the expected period of transition; (iii) Wheels Up's ability to achieve its financial goals on the most recent schedule that it has announced; (iv) Wheels Up's liquidity, working capital levels, future cash flows, debt and capital resources, and its ability to perform under its contractual and debt obligations in the future; (v) the potential benefits or impacts to Wheels Up from strategic actions, including, among others, acquisitions and divestitures, new debt or equity financings, refinancings of existing debt and commercial arrangements; and (vi) the impacts of general economic and geopolitical conditions on Wheels Up's business and the aviation industry, including due to, among others, changes in interest rates, inflation, foreign currencies, taxes, tariffs and trade policies, domestic and foreign hostilities, government shutdowns or funding changes, and other factors that influence consumer and business spending decisions or cost dynamics. The words "anticipate," "believe," "can," "continue," "could," "estimate," "expect," "future," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "should, " "strive," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that statement is not forward-looking. We have identified certain known material risk factors applicable to Wheels Up under Part I, Item 1A "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the U.S. Securities and Exchange Commission ("SEC") on March 10, 2026, under Part II, Item 1A "Risk Factors" in our Quarterly Report on Form 10-Q for the three months ended March 31, 2026 filed with the SEC on May 11, 2026 and in our other filings with the SEC. It is not always possible for us to predict how new risks and uncertainties that arise from time to time may affect us. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Except as required by law, we do not intend to update any of these forward-looking statements after the date of this press release.
Use of Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures, such as Adjusted EBITDA, Adjusted EBITDAR, Adjusted Contribution and Adjusted Contribution Margin. These non-GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and should not be considered as an alternative to any performance measures derived in accordance with GAAP. Definitions and reconciliations of non-GAAP financial measures to their most comparable GAAP counterparts are included in the sections titled "Definitions of Non-GAAP Financial Measures" and "Reconciliations of Non-GAAP Financial Measures," respectively, in this press release. Wheels Up believes that these non-GAAP financial measures provide useful supplemental information to investors about Wheels Up. However, there are certain limitations related to the use of these non-GAAP financial measures and their nearest GAAP measures, including that they exclude significant expenses that are required to be recorded in Wheels Up's financial measures under GAAP. Other companies may calculate non-GAAP financial measures differently, or may use other measures to calculate their financial performance, and therefore, Wheels Up's non-GAAP financial measures may not be directly comparable to similarly titled measures of other companies. Additionally, to the extent that forward-looking non-GAAP financial measures are provided, they are presented on a non-GAAP basis without reconciliations of such forward-looking non-GAAP financial measures due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations.
For more information on these non-GAAP financial measures, see the sections titled "Definitions of Non-GAAP Financial Measures," "Reconciliations of Non-GAAP Financial Measures" and "Update to Non-GAAP Definitions - Adjustments for Accounting Gains and Losses from Aircraft Sales" included in this press release.
Contacts
Investors:
ir@wheelsup.com
Media:
press@wheelsup.com
WHEELS UP EXPERIENCE INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands except share and per share data)
Three Months Ended June 30, Change in
------------------------------ --------------------
2026 2025 $ %
-------------- -------------- ------------ ------
Revenue $ 181,999 $ 189,637 $ (7,638) (4) %
Costs and
expenses:
Cost of revenue
(exclusive of
items shown
separately
below) 160,314 173,955 (13,641) (8) %
Technology and
development 8,842 9,358 (516) (6) %
Sales and
marketing 26,747 24,385 2,362 10 %
General and
administrative 31,666 30,232 1,434 5 %
Depreciation and
amortization 12,120 13,490 (1,370) (10) %
Impairment on
legacy fleet
retirement 12,736 -- 12,736 -- %
(Gain) on sale of
aircraft held
for sale (590) (2,203) 1,613 (73) %
Loss (gain) on
disposal of
assets, net 4,555 20 4,535 100 %
-------------- -------------- ------------ ------
Total costs and
expenses 256,390 249,237 7,153 3 %
-------------- -------------- ------------ ------
Loss from
operations (74,391) (59,600) (14,791) (25) %
Other (expense)
income
Loss on
extinguishment
of debt (25) (22) (3) 14 %
Loss on
divestiture (507) -- (507) -- %
Interest income 566 836 (270) (32) %
Interest expense (32,950) (22,084) (10,866) 49 %
Other (expense)
income, net (61) (470) 409 (87) %
-------------- -------------- ------------ ------
Total other
(expense)
income (32,977) (21,740) (11,237) 52 %
-------------- -------------- ------------ ------
Loss before income
taxes (107,368) (81,340) (26,028) (32) %
Income tax benefit
(expense) 119 (959) 1,078 112 %
Net loss (107,249) (82,299) (24,950) (30) %
Less: Net loss
attributable to
non-controlling
interests -- -- -- -- %
-------------- -------------- ------------ ------
Net loss
attributable to
Wheels Up
Experience Inc $ (107,249) $ (82,299) $ (24,950) (30) %
============== ============== ============ ======
Net loss per share
of Class A common
stock:
Basic and diluted $ (2.97) $ (2.35) $ (0.62) (26) %
============== ============== ============ ======
Weighted-average
shares of Class A
common stock
outstanding:
Basic and diluted 36,116,200 34,949,848 1,166,352 3.3 %
============== ============== ============ ======
WHEELS UP EXPERIENCE INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands except share and per share data)
Six Months Ended June 30, Change in
--------------------
2026 2025 $ %
-------------- -------------- ------------ ------
Revenue $ 350,921 $ 367,167 $ (16,246) (4) %
Costs and
expenses:
Cost of revenue
(exclusive of
items shown
separately
below) 319,510 332,379 (12,869) (4) %
Technology and
development 17,581 19,882 (2,301) (12) %
Sales and
marketing 48,930 46,546 2,384 5 %
General and
administrative 58,503 87,049 (28,546) (33) %
Depreciation and
amortization 23,834 33,700 (9,866) (29) %
Impairment on
legacy fleet
retirement 12,736 -- 12,736 -- %
(Gain) on sale of
aircraft held
for sale (3,098) (8,754) 5,656 (65) %
Loss (gain) on
disposal of
assets, net 4,672 (3,269) 7,941 100 %
-------------- -------------- ------------ ------
Total costs and
expenses 482,668 507,533 (24,865) (5) %
-------------- -------------- ------------ ------
Loss from
operations (131,747) (140,366) 8,619 (6) %
Other (expense)
income
Loss on
extinguishment
of debt (42) (60) 18 (30) %
Loss on
divestiture (507) -- (507) -- %
Interest income 808 1,984 (1,176) (59) %
Interest expense (58,257) (41,964) (16,293) 39 %
Other (expense)
income, net (72) (169) 97 (57) %
-------------- -------------- ------------ ------
Total other
(expense)
income (58,070) (40,209) (17,861) 44 %
-------------- -------------- ------------ ------
Loss before income
taxes (189,817) (180,575) (9,242) 5 %
Income tax benefit
(expense) (390) (1,037) 647 (62) %
Net loss (190,207) (181,612) (8,595) 5 %
Less: Net loss
attributable to
non-controlling
interests -- -- -- -- %
-------------- -------------- ------------ ------
Net loss
attributable to
Wheels Up
Experience Inc $ (190,207) $ (181,612) $ (8,595) 5 %
============== ============== ============ ======
Net loss per share
of Class A common
stock:
Basic and diluted $ (5.25) $ (5.20) $ (0.61) 26 %
============== ============== ============ ======
Weighted-average
shares of Class A
common stock
outstanding:
Basic and diluted 36,196,703 34,932,080 1,166,352 3.3 %
============== ============== ============ ======
WHEELS UP EXPERIENCE INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands, except share data)
June 30, 2026 December 31, 2025
------------------ ------------------
ASSETS
Current assets:
Cash and cash equivalents $ 86,309 $ 133,926
Accounts receivable, net 28,160 24,249
Parts and supplies inventories 1,952 11,586
Aircraft held for sale 64,391 18,463
Prepaid expenses 20,574 27,091
Other current assets 20,540 34,042
------------------ ------------------
Total current assets 221,926 249,357
Property and equipment, net 223,267 219,729
Operating lease right-of-use assets 104,927 111,886
Goodwill 208,786 209,897
Intangible assets, net 65,153 75,102
Restricted cash 33,766 30,577
Other non-current assets 68,741 72,266
------------------ ------------------
Total assets $ 926,566 $ 968,814
================== ==================
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term
debt $ 21,070 $ 19,039
Accounts payable 26,590 20,443
Accrued expenses 81,789 104,010
Deferred revenue, current 626,891 738,852
Other current liabilities 28,917 25,212
------------------ ------------------
Total current liabilities 785,257 907,556
Long-term debt, net 581,184 316,358
Operating lease liabilities,
non-current 112,158 121,067
Other non-current liabilities 8,265 15,934
------------------ ------------------
Total liabilities 1,486,864 1,360,915
------------------ ------------------
Equity:
Common Stock, $0.0001 par value;
75,000,000 authorized; 36,369,167
and 36,179,503 issued and
36,270,053 and 36,100,887 shares
outstanding as of June 30, 2026
and December 31, 2025,
respectively 4 4
Additional paid-in capital 2,044,408 2,020,477
Accumulated deficit (2,587,319) (2,397,112)
Accumulated other comprehensive
loss (7,308) (5,633)
Treasury stock, at cost, 99,114 and
78,616 shares, respectively (10,082) (9,836)
------------------ ------------------
Total Wheels Up Experience Inc.
stockholders' equity (560,298) (392,101)
Non-controlling interests -- --
------------------ ------------------
Total equity (560,298) (392,101)
------------------ ------------------
Total liabilities and equity $ 926,566 $ 968,814
================== ==================
WHEELS UP EXPERIENCE INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
Six Months Ended June 30,
--------------------------------------------
2026 2025
--------------------- ---------------------
Cash flows from operating
activities
Net loss $ (190,207) $ (181,612)
Adjustments to reconcile net
loss to net cash used in
operating activities:
Depreciation and amortization 23,834 33,700
Equity-based compensation 23,931 20,956
Payment-in-kind interest 31,551 26,492
Amortization of deferred
financing costs and debt
discount 21,292 5,694
Reserve for excess and
obsolete inventory 4,984 --
Impairment on legacy fleet
retirement 12,736 --
Gain on sale of aircraft held
for sale (7,464) (9,429)
Loss (gain) on disposal of
assets, net 4,730 (3,148)
Impairment of right-of-use
assets -- 20,218
Other 2,963 (705)
Changes in assets and
liabilities:
Accounts receivable (4,062) (4,965)
Parts and supplies
inventories 4,651 (857)
Prepaid expenses 9,199 1,686
Other non-current assets 3,465 2,095
Accounts payable 6,269 4,748
Accrued expenses (23,625) 2,731
Deferred revenue (114,861) (24,915)
Other assets and liabilities (649) (3,493)
--------------------- ---------------------
Net cash used in operating
activities (191,263) (110,804)
--------------------- ---------------------
Cash flows from investing
activities:
Purchases of property and
equipment (115,215) (30,465)
Capitalized software
development costs (3,583) (5,893)
Proceeds from sale of
divested business, net (204)
Proceeds from sale of
aircraft held for sale, net 52,481 55,122
Other -- 1,150
--------------------- ---------------------
Net cash (used in) provided by
investing activities (66,521) 19,914
--------------------- ---------------------
Cash flows from financing
activities:
Purchase of shares for
treasury (244) (195)
Proceeds from long-term debt 353,114 19,551
Repayments of long-term debt (136,879) (36,898)
Payment of debt issuance
costs (2,222) (18)
--------------------- ---------------------
Net cash provided by (used in)
financing activities 213,769 (17,560)
--------------------- ---------------------
Effect of exchange rate
changes on cash, cash
equivalents and restricted
cash (413) 3,224
Net decrease in cash, cash
equivalents and restricted
cash (44,428) (105,226)
Cash, cash equivalents and
restricted cash, beginning of
period 164,503 246,468
--------------------- ---------------------
Cash, cash equivalents and
restricted cash, end of
period $ 120,075 $ 141,242
===================== =====================
Definitions of Key Operating Metrics
Definitions of our key operating metrics are below. From time to time, we may adjust the definitions and calculations of our key operating metrics to reflect changes in our business or new data types, or to improve the accuracy and usefulness of such metrics. Our calculation of our key operating metrics may not be comparable to similarly titled measures reported by other companies.
Total Gross Bookings and Private Jet Gross Bookings. We define Total Gross Bookings as the total gross spend by our members and customers on all private jet flight services under our membership program and charter offerings, all group charter flights, which are charter flights with 15 or more passengers ("Group Charter Flights"), and all cargo flight services ("Cargo Services"). We believe Total Gross Bookings provides useful information about the scale of the overall global aviation solutions that we provide our members and customers.
We define Private Jet Gross Bookings as the total gross spend by our members and customers on all private jet flight services under our membership program and charter offerings (excluding Group Charter Flights and Cargo Services). We believe Private Jet Gross Bookings provides useful information about the aggregate amount our members and customers spend with Wheels Up versus our competitors.
For each of Total Gross Bookings and Private Jet Gross Bookings, the total gross spend by our members and customers is the amount invoiced to the member or customer and includes the cost of the flight and related services, such as catering, ground transportation, certain taxes, fees and surcharges. We use Total Gross Bookings and Private Jet Gross Bookings for historical period-to-period comparisons of our business and to identify trends, including relative to our competitors.
Live Flight Legs. We define Live Flight Legs as the number of completed one-way revenue generating private jet flight legs in the applicable period, excluding empty repositioning legs, Group Charter Flights and Cargo Services. We believe Live Flight Legs is a useful metric to measure the scale and usage of our platform, and our ability to generate Flight revenue.
Private Jet Gross Bookings per Live Flight Leg. We use Private Jet Gross Bookings per Live Flight Leg to measure the average gross spend by our members and customers on all private jet flight services under our membership program and charter offerings for each Live Flight Leg.
Utility. We define Utility for the applicable period as the total revenue generating flight hours flown on our controlled aircraft fleet, excluding empty repositioning legs, divided by the monthly average number of available aircraft in our controlled aircraft fleet. Utility is expressed as a monthly average. We measure the revenue generating flight hours for a given flight on our controlled aircraft as the actual flight time from takeoff to landing. We determine the number of aircraft in our controlled aircraft fleet available for revenue generating flights at the end of the applicable month and exclude aircraft then classified as held for sale. We use Utility to measure the efficiency of our operations, our ability to generate a return on our assets and the impact of our fleet modernization strategy.
Completion Rate. We define Completion Rate as the percentage of total scheduled flights operated and completed, excluding customer-initiated flight cancellations.
On-Time Performance (A-30). We define On-Time Performance (A-30) as the percentage of total flights flown that arrived within 30 minutes of the scheduled time, inclusive of air traffic control, weather, maintenance and customer delays, excluding all cancelled flights.
On-Time Performance (D-60). We define On-Time Performance (D-60) as the percentage of total flights flown that departed within 60 minutes of the scheduled time, inclusive of air traffic control, weather, maintenance and customer delays, excluding all cancelled flights.
3+ Hour Delay Rate. We define 3+ Hour Delay Rate as the percentage of total flights flown that were impacted by a departure delay of longer than three hours after the scheduled departure time, inclusive of air traffic control, weather, maintenance and customer delays, excluding all cancelled flights.
Definitions of Non-GAAP Financial Measures
Adjusted EBITDA and Adjusted EBITDAR. We calculate Adjusted EBITDA as Net income (loss) adjusted for (i) Interest income (expense), (ii) Income tax expense, (iii) Depreciation and amortization, (iv) Equity-based compensation expense and (v) other items not indicative of our ongoing operating performance, including but not limited to, restructuring and integration-related charges and non-cash gains and losses on sales of aircraft or other assets. We calculate Adjusted EBITDAR as Adjusted EBITDA, as further adjusted for aircraft lease costs.
We include Adjusted EBITDA and Adjusted EBITDAR as supplemental measures for assessing operating performance, to be used in conjunction with bonus program target achievement determinations, strategic internal planning, annual budgeting, allocating resources and making operating decisions, and to provide useful information for historical period-to-period comparisons of our business, as each measure removes the effect of certain non-cash expenses and other items not indicative of our ongoing operating performance.
Adjusted EBITDAR is included as a supplemental measure, because we believe it provides an alternate presentation to adjust for the effects of financing in general and the accounting effects of capital spending and acquisitions of aircraft, which may be acquired outright, acquired subject to acquisition debt, including under the Revolving Equipment Notes Facility (as defined in our SEC filings), by capital lease or by operating lease, each of which may vary significantly between periods and results in a different accounting presentation.
Beginning with the three months ended June 30, 2026, we began including (Gain) loss on sale of aircraft held for sale and Loss on extinguishment of debt as adjustments in the reconciliation of each of Adjusted EBITDA and Adjusted EBITDAR to Net loss. Prior period Adjusted EBITDA and Adjusted EBITDAR amounts for the three and six months ended June 30, 2025 presented herein have been recast to reflect this change. Please refer to the heading titled "Update to Non-GAAP Definitions -- Adjustments for Accounting Gains and Losses from Aircraft Sales" at the end of this press release for historical non-GAAP reconciliations of each of Adjusted EBITDA and Adjusted EBITDAR to Net loss for the quarterly periods beginning with the three months ended March 31, 2024 through the three months ended March 31, 2026 and for the years ended December 31, 2025 and 2024.
Adjusted Contribution and Adjusted Contribution Margin. We calculate Adjusted Contribution as Gross profit (loss) excluding Depreciation and amortization and adjusted further for equity-based compensation included in Cost of revenue and other items included in Cost of revenue that are not indicative of our ongoing operating performance. Adjusted Contribution Margin is calculated by dividing Adjusted Contribution by total Revenue.
We include Adjusted Contribution and Adjusted Contribution Margin as supplemental measures for assessing operating performance and for the following: to be used to understand our ability to achieve profitability over time through scale and leveraging costs; and to provide useful information for historical period-to-period comparisons of our business and to identify trends.
Reconciliations of Non-GAAP Financial Measures
Adjusted EBITDA and Adjusted EBITDAR
The following tables reconcile Adjusted EBITDA and Adjusted EBITDAR to Net loss, which is the most directly comparable GAAP measure (in thousands):
Three Months Ended June 30, Six Months Ended June 30,
---------------------------- -------------------------
2026 2025 2026 2025
------------- ------------- ----------- ------------
Net loss $ (107,249) $ (82,299) $ (190,207) $ (181,612)
Add back
(deduct):
Interest
expense 32,950 22,084 58,257 41,964
Interest income (566) (836) (808) (1,984)
Income tax
(benefit)
expense (119) 959 390 1,037
Other expense,
net 61 470 72 169
Depreciation
and
amortization 12,120 13,490 23,834 33,700
Loss on
divestiture 507 -- 507 --
Impairment on
legacy fleet
retirement 12,736 -- 12,736 --
Gain on sale of
aircraft held
for sale (590) (2,203) (3,098) (8,754)
Loss on
extinguishment
of debt 25 22 42 60
Loss (gain)
loss on
disposal of
assets, net 4,555 20 4,672 (3,269)
Equity-based
compensation
expense 12,543 8,295 23,931 20,956
Integration and
transformation
expense(1) 185 183 680 1,366
Fleet
modernization
expense(2) -- 7,972 -- 13,119
Legacy fleet
retirement(3) 6,091 -- 11,075 --
Other(4) 589 625 1,201 21,367
------------- ------------- ----------- ------------
Adjusted
EBITDA(5) $ (26,162) $ (31,218) $ (56,716) $ (61,881)
Aircraft lease
costs(6) 6,228 3,918 15,990 9,276
------------- ------------- ----------- ------------
Adjusted
EBITDAR(5) $ (19,934) $ (27,300) $ (40,726) $ (52,605)
============= ============= =========== ============
__________________
(1) Consists of expenses associated with our global integration efforts,
including charges for employee separation programs and third-party
advisor costs.
(2) Consists of expenses incurred in connection with the execution of our
fleet modernization strategy first announced in October 2024, which
primarily includes expenses associated with transitioning our Bombardier
Challenger 300 series and Embraer Phenom 300 series aircraft to our
operations and pilot training programs aligned to our fleet modernization
strategy, as well as certain cash and non-cash costs incurred associated
with exiting legacy private jet models.
(3) Includes expenses related to the retirement of our legacy aircraft as
part of our fleet transition and efficiency and cost reduction
initiatives.
(4) For the three and six months ended June 30, 2026, primarily consists of
on-going lease costs for our former New York City corporate office space,
which we vacated during the first quarter of 2025. For the six months
ended June 30, 2025, primarily includes a one-time $20.2 million non-cash
pre-tax right-of-use asset impairment charge associated with our former
New York City corporate office space.
(5) Beginning with the three months ended June 30, 2026, we began including
(Gain) loss on sale of aircraft held for sale and Loss on extinguishment
of debt as adjustments in the reconciliation of each of Adjusted EBITDA
and Adjusted EBITDAR to Net loss. Prior period Adjusted EBITDA and
Adjusted EBITDAR amounts have been recast to reflect this change.
Adjusted EBITDA and Adjusted EBITDAR, as previously reported without any
adjustment for (Gain) loss on sale of aircraft held for sale and Loss on
extinguishment of debt, for the three months ended June 30, 2025, were
$(29.0) million and $(25.1) million, respectively, and for the six months
ended June 30, 2025, were $(53.2) million and $(43.9) million,
respectively.
(6) Aircraft lease costs are reflected in Cost of revenue on the condensed
consolidated statement of operations for the applicable period.
Refer to "Supplemental Expense Information" below, for further information.
Adjusted Contribution and Adjusted Contribution Margin
The following tables reconcile Adjusted Contribution to Gross profit (loss), which is the most directly comparable GAAP measure (in thousands):
Three Months Ended June Six Months Ended June
30, 30,
-------------------------- ------------------------
2026 2025 2026 2025
------------ ------------ ----------- -----------
Revenue $ 181,999 $ 189,637 $ 350,921 $ 367,167
Less: Cost of
revenue (160,314) (173,955) (319,510) (332,379)
Less: Depreciation
and amortization (12,120) (13,490) (23,834) (33,700)
------------ ------------ ----------- -----------
Gross profit 9,565 2,192 7,577 1,088
============ ============ =========== ===========
Gross margin 5.3 % 1.2 % 2.2 % 0.3 %
Add back (deduct):
Depreciation and
amortization 12,120 13,490 23,834 33,700
Equity-based
compensation
expense in Cost of
revenue 60 100 110 178
Integration and
transformation
expense in Cost of
revenue(1) -- -- 15 363
Fleet modernization
expense in Cost of
revenue(2) -- 7,725 -- 10,782
Legacy fleet
retirement-related
expenses in Cost
of revenue(3) 800 -- 5,783 --
Other in Cost of
revenue(4) -- (437) -- (600)
------------ ------------ ----------- -----------
Adjusted
Contribution $ 22,545 $ 23,070 $ 37,319 $ 45,511
============ ============ =========== ===========
Adjusted
Contribution
Margin 12.4 % 12.2 % 10.6 % 12.4 %
__________________
(1) Consists of expenses associated with our global integration efforts,
including charges for employee separation programs.
(2) Consists of expenses incurred in connection with the execution of our
fleet modernization strategy, which primarily includes expenses
associated with transitioning our Bombardier Challenger 300 series and
Embraer Phenom 300 series aircraft to our operations and pilot training
programs aligned to our fleet modernization strategy, as well as certain
cash and non-cash costs incurred associated with exiting legacy private
jet models.
(3) Includes expenses related to the retirement of our legacy aircraft as
part of our fleet transition and efficiency and cost reduction
initiatives.
(4) Consists of amounts recovered on Parts and supplies inventory reserved
during prior periods related to Parts and supplies inventory deemed in
excess after revision of future business needs associated with strategic
business initiatives, including fleet modernization.
Supplemental Revenue Information
Three Months Ended June 30, Change in
2026 2025 $ %
---------------- ---------------- ------------------ ------
Membership $ 5,411 $ 7,474 $ (2,063) (28) %
Flight 157,709 158,330 (621) -- %
Other 18,879 23,833 (4,954) (21) %
---------------- ---------------- ------------------ ------
Total $ 181,999 $ 189,637 $ (7,638) (4) %
================ ================ ================== ======
Six Months Ended June 30, Change in
2026 2025 $ %
----------------- ----------------- ------------------ ------
Membership $ 11,429 $ 16,663 $ (5,234) (31) %
Flight 301,247 305,898 (4,651) (2) %
Other 38,245 44,606 (6,361) (14) %
----------------- ----------------- ------------------ ------
Total $ 350,921 $ 367,167 $ (16,246) (4) %
================= ================= ================== ======
Supplemental Expense Information
Three Months Ended June 30, 2026
Technology
Cost of and Sales and General and
(In thousands) revenue development marketing administrative Total
------------- ------------ ------------ -------------- ------------
Equity-based
compensation
expense $ 60 $ 301 $ 236 $ 11,946 $ 12,543
Integration and
transformation -- -- 185 -- 185
Legacy fleet
retirement 800 -- -- 5,292 6,092
Other -- -- -- 589 589
Six Months Ended June 30, 2026
Technology
Cost of and Sales and General and
(In thousands) revenue development marketing administrative Total
------------- ------------ ------------ -------------- ------------
Equity-based
compensation
expense $ 110 $ 464 $ 567 $ 22,790 $ 23,931
Integration and
transformation 15 32 429 204 680
Legacy fleet
retirement 5,783 -- -- 5,292 11,075
Other -- -- -- 1,201 1,201
Three Months Ended June 30, 2025
----------------------------------------------------------------------
Technology
Cost of and Sales and General and
(In thousands) revenue development marketing administrative Total
------------ ------------ ------------ -------------- ------------
Equity-based
compensation
expense $ 100 $ 330 $ 259 $ 7,606 $ 8,295
Integration and
transformation -- -- -- 183 183
Fleet
modernization
expense 7,725 -- -- 247 7,972
Other (437) -- -- 1,062 625
Six Months Ended June 30, 2025
----------------------------------------------------------------------
Technology
Cost of and Sales and General and
(In thousands) revenue development marketing administrative Total
------------ ------------ ------------ -------------- ------------
Equity-based
compensation
expense $ 178 $ 764 $ 500 $ 19,514 $ 20,956
Integration and
transformation 363 -- 500 503 1,366
Fleet
Modernization 10,782 -- 72 2,265 13,119
Other (600) -- -- 21,967 21,367
Update to Non-GAAP Definitions -- Adjustments for Accounting Gains and Losses from Aircraft Sales
Beginning with the three months ended June 30, 2026, we began including (Gain) loss on sale of aircraft held for sale and Loss on extinguishment of debt as adjustments in the reconciliation of each of Adjusted EBITDA and Adjusted EBITDAR to Net loss. (Gain) loss on sale of aircraft held for sale and Loss on extinguishment of debt, as presented for purposes of the Adjusted EBITDA and Adjusted EBITDAR non-GAAP reconciliations, are non-operating items that are included in the computation of Net loss in the condensed consolidated statements of operations. Management believes that including (Gain) loss on sale of aircraft held for sale and Loss on extinguishment of debt in the non-GAAP reconciliation of each of Adjusted EBITDA and Adjusted EBITDAR to Net loss improves the usefulness and clarity of our non-GAAP financial measures by removing the impact of accounting gains or losses generated from aircraft dispositions and related debt repayments that are not indicative of our core operating performance.
This update has no effect on any of our previously reported GAAP results. The historical non-GAAP reconciliations of each of Adjusted EBITDA and Adjusted EBITDAR to Net loss under the previous definition are included below, and are followed by tables that reflect the updated definition that adjusts for (Gain) loss on sale of aircraft held for sale and Loss on extinguishment of debt for such non-GAAP financial measures for the quarterly periods beginning with the three months ended March 31, 2024 through the three months ended March 31, 2026 and for the years ended December 31, 2025 and 2024.
Reconciliation of Adjusted EBITDA and Adjusted EBITDAR to Net income (loss) (Updated Definition -- in thousands)
Three Months Ended Year Ended
------------------------------------------------------------------------------------------------------------------------------------- ----------------------------
March 31, December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, December 31, December 31,
2026 2025 2025 2025 2025 2024 2024 2024 2024 2025 2024
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Net loss $ (82,958) $ (28,875) $ (83,730) $ (82,299) $ (99,313) $ (87,538) $ (57,731) $ (96,973) $ (97,393) $ (294,217) $ (339,635)
Add back (deduct):
Interest expense 25,307 24,996 23,510 22,084 19,880 18,089 16,041 16,667 14,555 90,470 65,352
Interest income (242) (405) (631) (836) (1,148) (922) (907) (285) (56) (3,020) (2,170)
Income tax expense
(benefit) 509 1,134 1,332 959 78 494 405 441 (114) 3,503 1,226
Other expense
(income), net 11 1,248 (4) 470 (301) 218 149 221 129 1,413 717
Depreciation and
amortization 11,714 13,545 13,926 13,490 20,210 13,074 12,484 15,593 15,395 61,171 56,546
Change in fair value
of warrant liability -- -- -- -- -- 17 (107) 70 28 -- 8
Loss (gain) on
divestiture -- 152 (1,833) -- -- 1,400 -- -- (3,403) (1,681) (2,003)
Loss (gain) on
disposal of assets,
net 117 (1,211) (480) 20 (3,289) 1,538 (70) (136) 1,963 (4,960) 3,295
Equity-based
compensation expense 11,388 11,975 12,499 8,295 12,661 12,613 7,885 14,268 11,211 45,430 45,977
Integration and
transformation
expense(1) 494 1,021 2,866 183 1,183 -- -- -- -- 5,253 --
Fleet modernization
expense(2) -- 9,008 8,697 7,972 5,147 28,135 -- -- -- 30,824 28,135
Legacy fleet
retirement(3) 4,984 -- -- -- -- -- -- -- -- -- --
Restructuring
charges(4) -- -- -- -- -- 365 970 4,371 2,144 -- 7,850
Atlanta Member
Operations Center
set-up expense(5) -- -- -- -- -- -- -- 458 3,023 -- 3,481
Certificate
consolidation
expense(6) -- -- -- -- -- 794 1,143 3,674 1,138 -- 6,749
Other(7) 613 340 624 625 20,742 416 (244) 4,276 2,151 22,331 6,599
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Adjusted EBITDA
(previous
definition) $ (28,063) $ 32,928 $ (23,224) $ (29,037) $ (24,150) $ (11,307) $ (19,982) $ (37,355) $ (49,229) $ (43,483) $ (117,873)
Aircraft lease
costs(8) 9,762 3,980 3,573 3,918 5,358 8,133 8,387 8,596 8,143 16,829 33,260
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Adjusted EBITDAR
(previous
definition) $ (18,301) $ 36,908 $ (19,651) $ (25,119) $ (18,792) $ (3,174) $ (11,595) $ (28,759) $ (41,086) $ (26,654) $ (84,613)
============= ============= ============= ============= ============= ============= ============= ============= ============= ============= =============
Three Months Ended Year Ended
------------------------------------------------------------------------------------------------------------------------------------- ----------------------------
March 31, December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, December 31, December 31,
2026 2025 2025 2025 2025 2024 2024 2024 2024 2025 2024
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Adjusted EBITDA
(previous
definition) $ (28,063) $ 32,928 $ (23,224) $ (29,037) $ (24,150) $ (11,307) $ (19,982) $ (37,355) $ (49,229) $ (43,483) $ (117,873)
Adjustments:
(Gain) loss on sale of
aircraft held for
sale (2,508) (39,272) (3,737) (2,203) (6,551) (1,942) (190) 234 (2,724) (51,763) (4,622)
Loss on extinguishment
of debt (17) (40) (19) (22) (38) (14,914) (289) (805) (1,706) (119) (17,714)
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Adjusted EBITDA
(updated definition) $ (30,588) $ (6,384) $ (26,980) $ (31,262) $ (30,739) $ (28,163) $ (20,461) $ (37,926) $ (53,659) $ (95,365) $ (140,209)
============= ============= ============= ============= ============= ============= ============= ============= ============= ============= =============
Three Months Ended Year Ended
------------------------------------------------------------------------------------------------------------------------------------- ----------------------------
March 31, December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, December 31, December 31,
2026 2025 2025 2025 2025 2024 2024 2024 2024 2025 2024
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Adjusted EBITDAR
(previous
definition) $ (18,301) $ 36,908 $ (19,651) $ (25,119) $ (18,792) $ (3,174) $ (11,595) $ (28,759) $ (41,086) $ (26,654) $ (84,613)
Adjustments:
(Gain) loss on sale of
aircraft held for
sale (2,508) (39,272) (3,737) (2,203) (6,551) (1,942) (190) 234 (2,724) (51,763) (4,622)
Loss on extinguishment
of debt (17) (40) (19) (22) (38) (14,914) (289) (805) (1,706) (119) (17,714)
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Adjusted EBITDAR
(updated definition) $ (20,826) $ (2,404) $ (23,407) $ (27,344) $ (25,381) $ (20,030) $ (12,074) $ (29,330) $ (45,516) $ (78,536) $ (106,949)
============= ============= ============= ============= ============= ============= ============= ============= ============= ============= =============
__________________
(1) Consists of expenses associated with the Company's global integration
efforts, including charges for employee separation programs and
third-party advisor costs.
(2) Consists of expenses incurred in connection with the execution of our
fleet modernization strategy first announced in October 2024, which
primarily includes expenses associated with transitioning the Embraer
Phenom 300 series and Bombardier Challenger 300 series aircraft to our
operations and pilot training programs aligned to our fleet modernization
strategy, as well as certain cash and non-cash costs incurred associated
with exiting legacy private jet models.
(3) Includes expenses related to the retirement of our legacy aircraft as
part of our fleet transition and efficiency and cost reduction
initiatives.
(4) Includes charges for contract termination fees and employee separation
programs as part of our cost reduction and strategic business
initiatives.
(5) Consists of expenses associated with establishing our Member Operations
Center located in the Atlanta, Georgia area and its operations, primarily
including redundant operating expenses during the transition period,
relocation expenses for employees and costs associated with onboarding
new employees.
(6) Consists of expenses incurred to execute the consolidation of our U.S.
Federal Aviation Administration operating certificates, primarily related
to pilot training and retention programs, and consultancy fees associated
with planning and implementing the consolidation process.
(7) For the three months ended March 31, 2026, primarily consists of on-going
lease costs for our former New York City corporate office space, which we
vacated during the first quarter of 2025. For the three months ended
March 31, 2025 and year ended December 31, 2025, includes a $20.2 million
non-cash, pre-tax right-of-use asset impairment charge associated with
vacating our former New York City corporate office space for a smaller,
centralized location and related on-going lease costs for the vacated
space. For each of the three months ended March 31, 2024, June 30, 2024
and September 30, 2024 and the year ended December 31, 2024, includes
collections of certain aged receivables, which were added back to Net
loss in the reconciliation presented for the year ended December 31,
2022. For the three months ended March 31, 2024 and year ended December
31, 2024, includes (i) reserves and/or write-off of certain aged
receivables associated with the aircraft management business divested on
September 30, 2023 and (ii) expenses associated with ongoing litigation
matters. For the three months ended June 30, 2024 and year ended December
31, 2024, includes amounts reserved during the second quarter of 2024
related to Parts and supplies inventory deemed in excess after revision
of future business needs associated with strategic business initiatives.
(8) Aircraft lease costs are reflected in Cost of revenue on the consolidated
statement of operations for the applicable period. We started reporting
Adjusted EBITDAR beginning with the three months ended March 31, 2025.
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