Shares of Wheels Up Experience Inc. (NYSE: UP) surged 6.81% in pre-market trading on Thursday following the company's announcement of a $10 million stock repurchase program and improved first-quarter results that showcased progress in its business transformation efforts.
The private aviation company reported a 10% year-over-year decline in revenue to $177.5 million for Q1 2025. However, the company's focus on profitability and operational efficiency yielded positive results. Wheels Up's gross loss improved by $15.5 million compared to the same period last year, while its Adjusted Contribution Margin increased by nearly 12 percentage points to 12.6%.
Investors were particularly encouraged by the Board of Directors' authorization of a $10 million stock repurchase program, signaling confidence in the company's future prospects. Additionally, Wheels Up announced an agreement with Delta to extend its $100 million revolving credit facility through September 2026, further strengthening its liquidity position. The company ended the quarter with approximately $272 million in total liquidity, including $171.8 million in cash and cash equivalents.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.