Charles Alcock is managing editor of the AIN Media Group, having rejoined the company in 2019. He has been an aviation journalist since 1986, and previously worked for AIN from 1990 to 2017, most recently as editor-in-chief. His main focus is on covering new aviation technology and business models, as well as international news.
Having been raised in the London area, Alcock studied at the University of Manchester in the UK and earned an honors degree in Politics and Modern History. He speaks English and French, and some German.

Managing Editor

Bombardier manufactures a variety of business aircraft models, provides engineering, and aircraft maintenance services.

Charles Alcock

Private aviation group Wheels Up is still striving to achieve profitability, with second-quarter figures reported today showing an $82.3 million net loss, albeit representing a 15% year-over-year (YOY) improvement. The company said it is implementing $50 million in cost savings as it completes the process of modernizing its fleet and optimizing its mix of products for improved returns.
Revenues for the period ending on June 30 were down 3% at $189.6 million, with gross flight bookings staying constant at $261.9 million. Wheels Up reported an adjusted EBITDA loss of $29 million in the quarter, representing a 22% YOY improvement.
By October,&nbsp;<a href="https://www.ainonline.com/aviation-news/business-aviation/2025-05-01/wheels-navigates-challenging-market-conditions">Wheels Up</a> aims to bring three more Bombardier Challenger 300s into service as part of a plan launched last year to replace older, less efficient aircraft. The last of its Cessna Citation CJ3s was phased out during the second quarter, and 20% of the company fleet now consists of Challengers and Embraer Phenoms.
According to Wheels Up, corporate memberships are now the group’s fastest-selling product, rising at a rate of 25% YOY. The company said it is also seeing increased demand drawn from its partnership arrangements with its main shareholder, <a href="https://www.ainonline.com/aviation-news/business-aviation/2024-06-17/wheels-refreshes-membership-and-charter-packages">Delta Air Lines</a>.
Just over two years ago, <a href="https://www.ainonline.com/aviation-news/business-aviation/2023-05-09/wheels-founder-kenny-dichter-steps-down-ceo">Wheels Up founder Kenny Dichter</a> stepped down in the wake of a $555 million loss in 2022. Since then, a new leadership team led by former Delta Air Lines board member George Mattson has been intently focused on turning the business around.
<h2>CEO Insists Transformation is Real</h2>
Mattson said the revenue decline was "modest" and rejected the suggestion that apparently gradual balance sheet improvements represent stagnation after a return to profitability had been anticipated by the end of 2024. “I’d say the metrics tell a very different story,” he told AIN. “This quarter, we improved gross profit by over $13 million, increased adjusted contribution margin by more than four points, and saw stronger utilization across our modernized fleet. At the same time, our partnership with Delta continues to drive meaningful demand. That isn’t stagnation, it’s transformation. We’re moving forward with momentum, and I’m incredibly proud of the team’s commitment to this endeavor.”
With 33 fewer active aircraft in Wheels Up’s “controlled fleet,” gross profits for the second quarter improved by $13 million to $2.2 million. A 10% improvement in aircraft utility drove an improvement of four percentage points in the adjusted contribution margin, which stood at 12.2%.
According to Mattson, the utility metric is how the company measures the efficiency of its controlled fleet. “It’s a key indicator of asset productivity and fleet alignment with demand,” he explained, adding that the Phenoms and Challengers are better utilized because they meet our customers’ expectations for size, range, and reliability.”
The strategic decision to renew the fleet is driven by an objective to achieve more profitable flying. "We’re operating a leaner and more efficient fleet and have exited certain legacy aircraft, but we’ve maintained stable gross bookings and improved nearly every key profitability metric," Mattson commented. "This is a signal of disciplined execution and an encouraging step forward on our path to long-term, sustainable growth."
The company said it expects the full impact of its planned cost savings to be realized on a quarter-by-quarter basis in the second half of 2026. As part of the fleet rationalization process, it sold or completed lease terms on 31 aircraft during the first half of 2025.
“These [cost-saving] efforts are tied to our fleet modernization strategy and other operational improvements, and they span efficiency gains, increased productivity, and reductions in overhead,” Mattson said.
During the second quarter, the cost of interest on Wheels Up’s debts was $22 million. Most of the debt is associated with financing the fleet modernization strategy.
In November 2024, the company renewed its <a href="https://www.ainonline.com/aviation-news/business-aviation/2024-11-14/wheels-completes-332m-financing-acquires-17-jets">credit support</a>&nbsp;through Bank of America and with Delta’s support. Mattson said this arrangement has given Wheels Up improved access to capital and on more attractive terms than would have been available without the airline’s backing.

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