Delivering continued operational performance improvements Positioned for long-term profitable growth NEW YORK, May 9, 2024 /PRNewswire/ -- Wheels Up Experience Inc. (NYSE:UP) today announced financial results for the first quarter, which ended March 31, 2024. First Quarter 2024 Highlights Total Revenue decreased $155 million year-over-year to $197 million, nearly half of which was due to exiting the aircraft management and aircraft sale businesses Adjusted Contribution decreased $4 million year-over-year to $2 million Net loss improved slightly year-over-year to $97 million Adjusted EBITDA was relatively flat year-over-year at a loss of $49 million "Wheels Up has made great strides to improve our operations and consistently deliver exceptional service and an experience worth repeating for our customers," said George Mattson, Chief Executive Officer. "Our strong operational performance provides the foundation for driving to profitable growth. I am pleased with the market interest in the accessibility and flexibility of our offerings, and we are seeing accelerating commercial momentum through our strategic partnership with Delta Air Lines." "Despite slower demand in January and February, we saw sequential improvement in March that is following through into the second quarter," said Todd Smith, Chief Financial Officer. "The plan that we put in place over the last year in terms of rebalancing our revenue mix, reducing our cost structure and improving our operational execution has laid the foundation for the improvement in our financial profile that we expect over the course of this year." Recent Initiatives Achieved Completion Rate of 98% and On-Time Performance (D-60) of 87% in the first quarter, both exceeding our goals and inclusive of weather, air traffic control delays, maintenance and customer delays. Wheels Up continues to lead the industry in the publication of its service metrics. Announced plans to open new flagship maintenance facility at Palm Beach International Airport (PBI), consolidating legacy maintenance facilities while aligning with our primary service area. Appointed David Harvey as Chief Commercial Officer. Financial and Operating Highlights(1) As of March 31, 2024 2023 % Change Active Members 9,155 12,285 (25) % Three Months Ended March 31, (In thousands, except Active Users, Live Flight Legs, Total Private Jet Flight Transaction Value per Live Flight Leg and percentages) 2024 2023 % Change Active Users 10,218 13,336 (23) % Live Flight Legs  11,754 15,389 (24) % Total Private Jet Flight Transaction Value $        191,763 $       258,109 (26) % Total Private Jet Flight Transaction Value per Live Flight Leg  $          16,315 $         16,772 (3) % Private Jet Charter FTV $          88,688 $         66,528 33 % Other Charter FTV 32,911 31,083 6 % Total Charter FTV $       121,599 $         97,611 25 % On-Time Performance (D-60) 87 % 86 % 1 % Completion Rate 98 % 98 % — % Revenue $       197,101 $       351,812 (44) % Net loss $        (97,393) $      (100,866) 3 % Adjusted EBITDA $        (49,229) $        (48,915) (1) % ____________________ (1) For information regarding Wheels Up's use and definitions of the key operating metrics and non-GAAP financial measures listed in the table above (except Revenue and Net loss), see "Definitions of Key Operating Metrics," "Definitions of Non-GAAP Financial Measures" and "Reconciliations of Non-GAAP Financial Measures" sections herein. For the first quarter: Active Members decreased 25% year-over-year to 9,155, primarily as a result of the regionalization of our member programs and focus on profitable flying. Active Users decreased 23% year-over-year to 10,218, due to the decline in Active Members. Live Flight Legs and Total Private Jet Flight Transaction Value decreased 24% and 26%, respectively, year-over-year, reflecting our efforts to focus on profitable flying and a slowdown in the industry. Total Private Jet Flight Transaction Value per Live Flight Leg decreased 3% year-over-year. Revenue decreased 44% year-over-year, primarily driven by exiting the aircraft management and aircraft sale businesses, as well as reduced Membership and Flight revenue. Net loss improved by $3.5 million year-over-year to $97.4 million. Adjusted EBITDA was relatively flat year-over-year at a loss of $49.2 million. About Wheels Up Wheels Up is a leading provider of on-demand private aviation in the U.S. and one of the largest companies in the industry. Wheels Up offers a complete global aviation solution with a large and diverse fleet and a global network of safety vetted charter operators, all backed by an uncompromising commitment to safety and service. Customers can access charter and membership programs, as well as unique commercial travel benefits through a one-of-a-kind, strategic partnership with Delta Air Lines. Wheels Up also offers freight, safety and security solutions and managed services to individuals, industry, government and civil organizations. Wheels Up is guided by the mission to deliver a premium solution for every customer journey. With the Wheels Up mobile app and website, members and customers have the digital convenience to search, book and fly. Cautionary Note Regarding Forward-Looking Statements This press release contains certain "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, 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", or "we", "us", or "our"), 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) the impact of Wheels Up's cost reduction efforts and measures intended to increase Wheels Up's operational efficiency on its business and results of operations, including the timing and magnitude of such expected actions and any associated expenses in relation to liquidity levels and working capital needs; (ii) Wheels Up's liquidity, future cash flows and certain restrictions related to its debt obligations; (iii) the size, demands, competition in and growth potential of the markets for Wheels Up's products and services and Wheels Up's ability to serve and compete in those markets; (iv) the degree of market acceptance and adoption of Wheels Up's products and services, including our member programs, charter offerings and other products introduced by Wheels Up; (v) Wheels Up's ability to perform under its contractual and indebtedness obligations; (vi) the expected impact or benefits of any potential strategic actions involving Wheels Up or its subsidiaries or affiliates, including asset sales, acquisitions, new financings or refinancings of existing indebtedness; (vii) Wheels Up's ability to achieve positive Adjusted EBITDA (as defined herein) pursuant to the schedule that it has announced; and (viii) general economic and geopolitical conditions, including due to fluctuations in interest rates, inflation, foreign currencies, consumer and business spending decisions, and general levels of economic activity. In addition, any statements that refer to projections, forecasts, or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate," "believe," continue," "could," "estimate," "expect," "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 in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the U.S. Securities and Exchange Commission ("SEC") and our other filings with the SEC. Moreover, 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 Contribution, Adjusted Contribution Margin, Total Private Jet Flight Transaction Value and Total Flight Transaction Value. These non-GAAP financial measures are an addition, and not a substitute for or superior to, measures of financial performance prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") and should not be considered as an alternative to revenue or any component thereof, net income (loss), operating income (loss) or any other 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 key metrics and 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 of financial results provide useful supplemental information to investors about Wheels Up. However, there are a number of limitations related to the use of these non-GAAP financial measures and their nearest GAAP equivalents, including that they exclude significant expenses that are required by GAAP to be recorded in Wheels Up's financial measures or represent a transaction value that Wheels Up does not book as revenue. In addition, 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 Key Operating Metrics," "Definitions of Non-GAAP Financial Measures" and "Reconciliations of Non-GAAP Financial Measures" included in this press release. WHEELS UP EXPERIENCE INC. CONSOLIDATED BALANCE SHEETS (Unaudited, in thousands, except share data) March 31, 2024 December 31, 2023 ASSETS Current assets:      Cash and cash equivalents $                180,857 $                    263,909      Accounts receivable, net  42,317 38,237      Other receivables 9,309 11,528      Parts and supplies inventories, net  20,561 20,400      Aircraft inventory — 1,862      Aircraft held for sale  20,239 30,496      Prepaid expenses  43,360 55,715      Other current assets  16,257 11,887           Total current assets 332,900 434,034      Property and equipment, net 321,904 337,714      Operating lease right-of-use assets 63,043 68,910      Goodwill 217,516 218,208      Intangible assets, net 112,447 117,766      Restricted cash 32,433 28,916      Other non-current assets 101,049 110,512           Total assets $             1,181,292 $                 1,316,060 LIABILITIES AND EQUITY Current liabilities:      Current maturities of long-term debt $                  22,265 $                      23,998      Accounts payable  45,694 32,973      Accrued expenses 90,122 102,475      Deferred revenue, current 698,013 723,246