![]() Of course, the cash doesn’t account for funds members have deposited for future flights, which is not atypical of the jet card segment. (There are) no issues with financial insolvency based on these metrics.” Speaking before Wheels Up announced it had raised $259 million via equipment notes, Prestopino told us, “At this juncture, the company has over $400 million in cash and no long-term debt on its balance sheet. The industry average dipped from 86.2% to 81.1% this year. Still, the bottom line is Wheels Up has been adding net members despite losses and despite its stock price.Ī recent survey of 571 Private Jet Card Comparisons subscribers found Wheels Up with an 81.9% renewal rate, up from 79.7% in 2021, within the statistical margin of error. It also didn’t stop selling to new members or even renewing existing customers, something others did as demand for private jets escalated. That gave existing and new members a window to lock in current prices before the hikes. In part, that has been driven by how Wheels Up has handled price increases. In fact, only a handful of private jet flight providers have more than 2,000 active members in total. The net gain of 2,152 members represents 20.5% growth. At the end of Q2, that was up to 12,667 members, according to its financial statements. Just before its IPO, Wheels Up had 10,515 active members. What does stock price mean to customers?īut what does the share price mean to customers? The company has already said it will cut losses by increasing efficiency between its operators, something it hopes a new operations center will help. In fact, Wheels Up is the product of a shopping spree that included TMC Jets (2019), Delta Private Jets (2019), Gama Aviation Signature (2020), Mountain Aviation (2021), Alante Air Charter (2022), tech platform Avianis (2019) and broker Air Partner (2022). The M&A market has been robust in business aviation. It will report Q3 2022 numbers sometime early in November.Īsked if Wheels Up is a takeover target at its current share price, Prestopino says, “Anything is possible.” H1 2022 Net Loss increased from $61 million to $182 million while revenues increased 37% from $547 million to $751 million. Wheels Up posted a loss of $92 million in the second quarter despite seeing revenues soar by 49% to $425 million. Anything that came out of a SPAC is getting slaughtered,” he says. “(The) market is moving away from risk-on assets such as UP that are losing bucket loads of money. Gary Prestopino of Barrington Research, one of the first Wall Street analysts to follow Wheels Up, says a key issue with its stock price is the private aviation flight provider is in the wrong place at the wrong time. That’s less than the value of its airplanes. It’s a mark it hasn’t seen since, dropping to as low as 99 cents before getting above the century mark.Īt its current price, the market cap for Wheels Up is $385 million. ![]() On August 29 th, Wheels Up’s stock, which trades on the NYSE under the UP symbol, closed at $2 per share. ![]()
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