Executives of Wheels Up, a private aviation provider, reported on a second quarter earnings call that they are seeing “financial improvements” over the last quarter despite a decline in revenue. George Mattson, CEO, said improvements are an indication that its initiatives are working and are “an encouraging sign of the company’s ability to achieve profitability and financial stability.” He said revenue in the quarter “has stabilized sequentially following a period of restructuring, revamping our commercial offering and focusing on more profitable flying.”

“We’re seeing members return to Wheels Up who have left over the last couple of years, and we are bringing on new corporate customers from our growing pipeline of prospects through our corporate sales initiative with Delta,” Mattson said. Delta acquired a 95% stake in Wheels Up last year.

Mattson added that the “next phase of our customer experience journey” is for a fleet modernization. “Our intention is to invest in and modernize our fleet across the portfolio, including the introduction of larger, newer and more capable aircraft,” he said, noting that more details would follow later in the year. “Through the combination of our operational improvements, our structural cost improvements and our commercial momentum, we are earning the right to grow profitably.”

Wheels Up second-quarter active members declined 29% year over year to nearly 8,300, with active users declining 20% to nearly 10,000. The number of live flight legs also declined 29 percent compared with Q2 2023 to nearly 12,900.

The company’s total private jet flight transaction value (FTV) was down 19% year over year to $216.8 million, while private jet charter FTV increased 35 % to $113.2 million. Total charter FTV was up 16% to $161.7 million.

Prepaid blocks totaled $145 million for the quarter, up 27% from the first quarter and up 50%year over year, Todd Smith, CFO, said, “The strength and prepaid block sales reflects an increasing appreciation by customers of our improved service metrics and our global capabilities, as well as the continued strength of our Delta relationship related to corporate strength.”