Shares of Wheels Up Experience Inc. (NYSE:UP) plummeted 5.51% in pre-market trading on Wednesday following the release of its third-quarter financial results. The private aviation company reported a wider net loss and decreased revenue, overshadowing its cost-saving initiatives and fleet modernization efforts.

For the third quarter, Wheels Up reported revenue of $185.5 million, down 4% year-over-year. The company attributed this decline to the reduction in flight revenue from discontinued Connect and Pay-As-You-Fly members. The net loss widened to $83.7 million, or $(0.12) per share, compared to a loss of $57.7 million, or $(0.08) per share, in the same period last year. Adjusted EBITDA loss increased to $23.2 million from $20 million in the prior year.

Despite the disappointing financial results, Wheels Up highlighted several positive developments. The company announced that its productivity initiatives are now expected to drive approximately $70 million or more in annual cash cost savings, up from the original $50 million estimate. These savings are anticipated to begin in the first quarter of 2026, with full run-rate benefits expected by the third quarter of 2026. Additionally, Wheels Up reported strong growth in corporate memberships and on-demand charter offerings, driven by its partnership with Delta Air Lines. The company also made progress in its fleet modernization strategy, with the Phenom 300 becoming the largest fleet type in revenue service.

CEO George Mattson expressed optimism about the company's trajectory, stating, "We expect our fourth quarter financial results to be the best since starting our transformation two years ago, setting the stage for accelerating improvement as we close the year and head into 2026." However, investors appear to be focusing on the near-term financial challenges, leading to the pre-market stock price decline.