Wheels Up Experience Inc (UP) 2024 Q3 法說會逐字稿

Welcome to Wheels Ups third quarter, 2024 earnings conference webcast. It is my pleasure to introduce Keith Ferguson. Mr. Ferguson. You may begin the conference.

歡迎收看 Wheels Ups 2024 年第三季財報會議網路直播。我很高興向大家介紹基斯·弗格森。弗格森先生。您可以開始會議了。

Thank you. This morning, we announced our third quarter results, the earnings release with its supporting tables as well as a copy of today's presentation can be found on our investor relations website at WheelsUp .com/investors. Please refer to the slide with our disclaimer. Today's presentation contains forward-looking statements based on our current forecast and expectations of future events. These statements should be considered estimates only and actual results may differ materially during today's webcast, we will refer to Non-GAAP financial measures as outlined by SEC guidelines unless otherwise noted, all income statement related financial measures will be Non-GAAP other than revenue reconciliations of GAAP to Non-GAAP financial measures and definitions of Non-GAAP financial measures and key operating metrics can be found in the financial tables of our earnings release and appendix of today's presentation.

謝謝。今天早上，我們公佈了第三季度業績，收益發布及其支持表格以及今天演示文稿的副本可以在我們的投資者關係網站 WheelsUp .com/investors 上找到。請參閱帶有我們的免責聲明的幻燈片。今天的演示包含基於我們目前的預測和對未來事件的預期的前瞻性陳述。這些報表僅應被視為估計值，在今天的網路直播中，實際結果可能會存在重大差異，除非另有說明，否則我們將參考SEC 指南中概述的非GAAP 財務指標，除非另有說明，所有與損益表相關的財務指標均將採用非GAAP（收入調節表） GAAP 與非GAAP 財務指標的區別以及非GAAP 財務指標和關鍵運營指標的定義可以在我們的收益發布的財務表格和今天演示文稿的附錄中找到。

And with that, I'd like to turn it over to Wheels Up the Chief Executive Officer George Matson.

說到這裡，我想把它交給 Wheels Up 執行長 George Matson。

Thank you, Keith and thanks to all of you for joining us today.

謝謝基思，也謝謝大家今天加入我們。

When Delta invested in Wheels Up just over a year ago, I stepped off the Delta board and into my role as CEO of Wheels Up with a clear vision to combine the separate ecosystems of private and premium commercial aviation into one seamless, flexible and accessible offering and to do it profitably through a one of a kind strategic partnership with Delta Airlines.

一年多前，當達美航空投資Wheels Up 時，我離開了達美航空董事會，並擔任Wheels Up 首席執行官，我的願景很明確，即將私人航空和高端商業航空的獨立生態系統整合為一個無縫、靈活且可訪問的產品並透過與達美航空建立獨特的策略合作夥伴關係來實現盈利。

At the start of my tenure, we outlined a bold ambition to guide our efforts becoming the best run private aviation company in the world that starts with being the best operator in the industry. Over the last year, we've built a best in class team that has fortified our business through continuous operational improvement while providing unmatched transparency and building trust with our customers.

在我上任之初，我們制定了一個大膽的雄心壯志，引導我們努力成為世界上運營最好的私人航空公司，首先是成為業內最好的運營商。去年，我們建立了一支一流的團隊，透過持續的營運改善增強了我們的業務，同時提供無與倫比的透明度並與客戶建立信任。

Second, it means offering the most compelling product in the industry.

其次，這意味著提供業界最引人注目的產品。

Our suite of on demand private aviation solutions spanning both programmatic memberships and global charter offerings is we believe the most flexible accessible and customer centric on the market while also delivering the greatest value.

我們的隨選私人航空解決方案涵蓋程序化會員資格和全球包機服務，我們相信這是市場上最靈活且以客戶為中心的解決方案，同時也能提供最大的價值。

And thanks to our strategic partnership with Delta Airlines, we are the only company that can deliver those private aviation solutions in a single integrated relationship with the premium global commercial airline, enabling the customer to choose their mode of travel, trip by trip, private commercial or a hybrid of the two, putting the customer in control of their travel decisions and delivering the widest array of tools with which to do that sits at the heart of what we do every day.

由於我們與達美航空的策略合作夥伴關係，我們是唯一一家能夠透過與優質全球商業航空公司的單一整合關係提供這些私人航空解決方案的公司，使客戶能夠選擇自己的旅行方式，逐次旅行、私人商業或兩者的混合，讓客戶掌控自己的旅遊決策，並提供最廣泛的工具來實現這一目標，這是我們日常工作的核心。

These significant intentional improvements have fortified our business over the past year and with our third quarter results, I'm pleased to report that we continue to see sequential improvement in our financials after seven quarters of sequential revenue decline leading into the current year. And following last year's restructuring of our operations and the revamping of our commercial offering to shed on profitable flying. Our revenue stabilized in 2024. Our live leg demand in the quarter was flat sequentially versus an industry decline of over 15%.

這些有意而為之的重大改進在過去的一年裡增強了我們的業務，從我們第三季度的業績來看，我很高興地報告說，在今年連續七個季度的收入連續下降之後，我們的財務狀況持續出現連續改善。繼去年對我們的業務進行重組並改進我們的商業產品以擺脫盈利的飛行之後。我們的收入在 2024 年趨於穩定。本季我們的活腿需求與上一季持平，而產業下降幅度超過 15%。

That out performance has continued in the month of October. We remain focused on continuing to drive operational performance efficiency and margin improvement. As we look to resume growth in the new year, our adjusted contribution margin for the third quarter was almost 15% nearly double what we reported in the second quarter, the highest we've achieved since going public in 2021 and an expansion of 14% points since the fourth quarter of last year.

這種表現在十月仍在持續。我們仍然專注於繼續推動營運績效效率和利潤率提高。當我們希望在新的一年恢復成長時，我們第三季調整後的貢獻率幾乎達到15%，幾乎是第二季報告的兩倍，這是我們自2021 年上市以來取得的最高水平，擴張了14%自去年第四季以來的積分。

This is a result of improved operational performance, higher utilization of our fleet and strong growth in our charter business.

這是營運績效改善、機隊利用率提高以及包機業務強勁成長的結果。

We also reduced our adjusted EBITDA loss by nearly 50% sequentially to $20 million.

我們也將調整後 EBITDA 虧損環比減少了近 50%，達到 2,000 萬美元。

Back in the summer of 2022. Facing adjusted EBITDA losses of over $160 million over the preceding 12 months, we established what at the time was an ambitious goal of achieving positive adjusted EBITDA in 2024.

時間回到2022年夏天。面對過去 12 個月超過 1.6 億美元的調整後 EBITDA 損失，我們制定了一個雄心勃勃的目標，即在 2024 年實現正調整後 EBITDA。

This quarter, we have once again made meaningful progress toward achieving that goal.

本季度，我們在實現這一目標方面再次取得了有意義的進展。

We anticipate that our fourth quarter adjusted EBITDA will once again show strong sequential improvement over the third quarter. So we do expect to absorb some costs from our recently announced fleet modernization strategy and the associated transactions that will provide a headwind to achieving that goal in the fourth quarter.

我們預計第四季度調整後的 EBITDA 將再次顯示出較第三季強勁的環比改善。因此，我們確實希望從我們最近宣布的機隊現代化策略和相關交易中吸收一些成本，這將為第四季度實現這一目標帶來阻力。

That said, even if we do not beat break, even in the fourth quarter, we expect to generate positive adjusted EBITDA for the full year in 2025.

也就是說，即使我們沒有突破，即使在第四季度，我們預計 2025 年全年將產生正的調整後 EBITDA。

Part of that success will depend on the continuation of the increased commercial momentum. We saw this quarter with block sales up over 85% year over year to $147 million. We're seeing strong traction in terms of our Delta corporate sales initiative with joint Delta accounts representing the highest mix of overall block sales in the month of September.

這一成功部分取決於商業動能的持續成長。我們看到本季的大宗銷售年增超過 85%，達到 1.47 億美元。我們看到達美航空企業銷售計劃的強勁吸引力，其中達美聯合帳戶代表了 9 月份整體大宗銷售的最高組合。

That's the best monthly performance in over four years since we started tracking that data.

這是自我們開始追蹤該數據以來四年多來最好的月度表現。

We expect our recent fleet announcements to drive strong customer interest and continued commercial momentum in the fourth quarter and into 2025 with our operations and financial stabilized and showing clear sequential improvement. We have spent the last several months building our fleet modernization strategy which we announced two weeks ago alongside several major aircraft commercial and financing transactions that have already set the strategy in motion at the National Business Aviation Association's annual conference in Las Vegas.

我們預計，隨著我們的營運和財務穩定並顯示出明顯的連續改善，我們最近發布的機隊公告將在第四季度和 2025 年推動客戶的強烈興趣和持續的商業勢頭。在過去的幾個月裡，我們一直在製定我們的機隊現代化策略，我們在兩週前宣布了該策略，同時宣布了幾​​項重大飛機商業和融資交易，這些交易已經在拉斯維加斯在舉行的國家公務航空協會年會上啟動了該策略。

We expect these actions will enable the replacement of our fleet of existing jets across four current models with two of the most popular preferred and successful aircraft types in the industry.

我們預計這些行動將能夠用業內最受歡迎和最成功的兩種飛機類型替換我們現有的四種當前型號的飛機機隊。

Embryo's phenom 300 series and Bombardier's Challenger 300 series aircraft.

Embryo 的phenom 300 系列和龐巴迪的Challenger 300 系列飛機。

We plan to transition our existing Hawker 400 XP and citation CJ three XL and XL S fleets to Embryo air feed on 303 100 ES bridging our existing light and midsized cabin options allowing us to consolidate three fleets into one, reducing operating complexity and expenses and increasing scheduling flexibility. We also plan to transition our existing citation 10 fleet to Bombardier Challenger 303 100 aircraft while continuing to operate a fleet of King Airs in selecting these aircraft types. We considered numerous factors including operational reliability, performance and efficiency.

我們計劃將現有的Hawker 400 XP 和CJ 3 XL 和XL S 機隊轉換為303 100 ES 上的Embryo 供氣機隊，橋接我們現有的輕型和中型客艙選項，使我們能夠將三個機隊合併為一個機隊，從而降低營運複雜性和費用，並增加調度靈活性。我們還計劃將現有的 10 號機隊轉為龐巴迪挑戰者 303 100 飛機，同時繼續運營空中國王機隊來選擇這些飛機類型。我們考慮了許多因素，包括操作可靠性、性能和效率。

We also listen to the market in selecting the best selling aircraft over the last decade in their respective categories among both corporate customers and discerning leisure customers.

我們也聽取市場的意見，在企業客戶和挑剔的休閒客戶中選擇過去十年各自類別中最暢銷的飛機。

As a result, these aircraft types have large installed bases and correspondingly large secondary markets which we believe will enable the completion of our fleet transition to these aircraft types within approximately three years, subject to business and market conditions at NBAA. We announced our binding agreement to acquire the entire fleet of 17 Embryo Phenom 303 100 ES aircraft of Grand View Aviation, a subsidiary of global Medical Response.

因此，這些飛機類型擁有龐大的安裝基礎和相應的大型二級市場，我們相信這將使我們的機隊在大約三年內完成向這些飛機類型的過渡，具體取決於 NBAA 的業務和市場條件。我們宣布達成具約束力的協議，收購 Global Medical Response 子公司 Grand View Aviation 的整個機隊 17 架 Embryo Phenom 303 100 ES 飛機。

Our intention is to incrementally grow our Phenom fleet as we retire our Hawker CJ three XL and XL S fleets, a process that we expect will be completed within approximately three years.

我們的目的是隨著豪客 CJ 的三架 XL 和 XL S 機隊退役，逐漸壯大我們的 Phenom 機隊，我們預計這一過程將在大約三年內完成。

Upon closing the transaction which we are working to complete by the end of November. We expect to immediately introduce the Phenom 300 series aircraft into our programmatic membership offering and to our charter customers.

交易完成後，我們將努力在 11 月底前完成。我們希望立即將飛鴻 300 系列飛機引入我們的計劃會員服務和包機客戶。

The vast majority of Phenom aircraft in the market are either wholly owned by individual owners or corporate flight departments or are fractionally owned through the fractional programs of other operators. With the grand view aircraft. We expect to become the largest provider of phenom aircraft on an on demand basis in the world.

市場上絕大多數飛鴻飛機要么由個人所有者或公司飛行部門全資擁有，要么透過其他運營商的部分計劃部分擁有。與大觀飛機。我們期望成為世界上最大的按需提供卓越飛機的供應商。

Our fleet modernization plan also revamps our offerings in the super mid fleet category where we intend to opportunistically acquire a fleet of pre owned Challenger 300 Series aircraft via the secondary market through a combination of outright purchases and long term leasing.

我們的機隊現代化計劃還改進了我們在超中型機隊類別中的產品，我們打算透過直接購買和長期租賃相結合的方式，透過二級市場機會收購一支二手挑戰者 300 系列飛機機隊。

As we look to execute our plan, we have entered into a sale agreement for ALL13 of our currently owned citation 10 aircraft. As part of this deal, we plan to lease a portion of them back and amend the leases on our existing lease citation tens with the same buyer. This provides important flexibility to end leases as well as replace and backfill those current lease citation tens with Challenger aircraft in the future, providing for a seamless transition to our new fleet.

在我們尋求執行我們的計劃時，我們已就我們目前擁有的 10 架飛機的全部 13 架簽訂了銷售協議。作為這筆交易的一部分，我們計劃回租其中一部分，並與同一買家修改我們現有租賃引文十的租約。這為終止租賃以及將來用挑戰者飛機替換和回填當前的租賃引文十提供了重要的靈活性，從而實現了向我們新機隊的無縫過渡。

We expect to begin operating challengers in our fleet by early next year with availability on both an as requested charter basis and on specified routes for our members. Full introduction into our programmatic offering across our guaranteed service areas is expected by the end of 2025.

我們預計明年初開始在我們的機隊中運作挑戰者，並根據要求包機和為我們的會員提供指定航線。預計到 2025 年底，我們將在有保證的服務領域全面推出程序化產品。

Like the phenom transition time line, we expect to complete the transition to our challengers within approximately three years.

與傑出過渡時間線一樣，我們預計在大約三年內完成向挑戰者的過渡。

Lastly, I want to turn to the final piece of the puzzle, the financing to enable these transactions as well as future actions to complete our comprehensive fleet transition.

最後，我想談談最後一個難題，即實現這些交易的融資以及完成我們全面的機隊轉型的未來行動。

We have entered into a commitment letter with Bank of America for a new up to $332 million senior secured revolving credit facility.

我們與美國銀行簽訂承諾書，提供高達 3.32 億美元的新優先擔保循環信貸額度。

The company anticipates that the revolving facility will close concurrently with the closing of the brand new acquisition by the end of November.

該公司預計，該循環設施將在 11 月底前與全新收購完成同時關閉。

We expect to utilize the revolving facility to fund several actions including the grand view acquisition, the redemption of all outstanding equipment notes on the company's owned aircraft and general corporate purposes. The financing along with the sale of aircraft currently under contract is also expected to deliver up to $115 million of additional cash to our balance sheet before transaction expenses and provides future revolving borrowing availability as we pay down debt and reposition our fleet with which we expect to opportunistically acquire additional phenom and challenger aircraft in the future as we complete our fleet modernization plan, highlighting their commitment to us, Delta Airlines has agreed to provide credit support for the new financing, enhancing our access to capital and on more attractive terms than would otherwise be available.

我們預計將利用該循環貸款為多項行動提供資金，包括 Grand View 收購、贖回公司自有飛機上所有未償還的設備票據以及一般公司用途。融資以及目前合約中的飛機銷售預計還將在交易費用之前為我們的資產負債表帶來高達1.15 億美元的額外現金，並在我們償還債務和重新定位我們的機隊時提供未來的循環借款可用性。的機會，並以比其他方式更具吸引力的條款可用。

This backing is a further testament to the strength of our partnership, as well as Delta's confidence and the progress we have made to date and our planned fleet modernization as we execute on our transformation plan, the operational commercial and financial implications of the fleet strategy are extensive and underpin our long term strategy.

這種支持進一步證明了我們合作夥伴關係的實力，以及達美航空的信心和我們迄今為止所取得的進展，以及我們在執行轉型計劃時計劃的機隊現代化，機隊戰略的運營商業和財務影響廣泛並支撐我們的長期策略。

Looking ahead, we expect that the significant reduction of the average age of our aircraft and the selection of replacement aircraft types well known in the industry for their reliability will be instrumental in driving a step change, improvement in operational performance and operational efficiency.

展望未來，我們預計，飛機平均機齡的顯著降低以及選擇業內知名的可靠性替代飛機類型將有助於推動變革、提高營運績效和營運效率。

Eric will go into this in greater detail but our transform fleet is expected to enable improved maintenance availability, higher utilization and lower operating costs, all of which are anticipated to dramatically change our profitability margins per aircraft, transform the unit cost economics of our business and drive profit improvement over the next several years as we continue to enable and invest in an exceptional experience for our customers.

艾瑞克將更詳細地討論這一點，但我們的改造機隊預計將能夠提高維護可用性、更高的利用率和更低的營運成本，所有這些預計將極大地改變我們每架飛機的利潤率，改變我們業務的單位成本經濟性，隨著我們繼續為客戶提供卓越的體驗並進行投資，推動未來幾年利潤的提高。

We have already made an incredible amount of progress in the last year in raising the bar for our customers in a recent third party survey by private jet card comparisons of their subscribers we saw a nearly 50% increase in Wheels Up customers who were highly satisfied the largest year over year improvement of any provider with almost three quarters of all respondents who use Wheels Up rating their experience with us. That's excellent or very good.

去年，我們在提高客戶標準方面取得了令人難以置信的進展。我們的服務非常滿意。這非常好或非常好。

We're incredibly proud of this progress and in such a short period of time and are committed to continuing to enhance our customer experience as we introduce our new phenom and Challenger aircraft into our fleet central to that experience is exceptional on board. WIFI

我們對在如此短的時間內取得的這一進展感到無比自豪，並致力於繼續增強我們的客戶體驗，因為我們將新的卓越飛機和挑戰者飛機引入我們的機隊，這是卓越的機上體驗的核心。無線上網

Concurrent with the announcement of our fleet modernization strategy, we announced that we entered into a letter of intent with Gogo Business Aviation to equip the phenom and Challenger aircraft we expect to acquire with the enhanced capabilities and superior performance of Gogo Galileo HDX satellite based WIFI Gogo's low earth orbit satellite system is expected to deliver high bandwidth, low latency, global coverage and be capable of live streaming and voice telephony.

在宣布我們的機隊現代化戰略的同時，我們宣布與 Gogo Business Aviation 簽訂了一份意向書，為我們期望購買的飛鴻和挑戰者飛機配備基於 Gogo Galileo HDX 衛星的 WIFI Gogo 的增強功能和卓越性能。地球軌道衛星系統預計將提供高頻寬、低延遲、全球覆蓋，並能夠進行直播和語音電話。

As these new aircraft enter our fleet, we look forward to delivering best in class connectivity as one of the first and only domestic fleets in private aviation with standardized satellite WIFI capability with the inclusion of two of the most popular and reliable aircraft in private aviation in our updated fleet, unlocking such potential. We are confident that Wheels Up remains on the right track with our goal of achieving positive adjusted EBITDA for the full year in 2025.

隨著這些新飛機進入我們的機隊，我們期待提供一流的連接性，作為第一批也是唯一擁有標準化衛星WIFI 功能的國內私人航空機隊，其中包括兩架在私人航空中最受歡迎和最可靠的飛機我們更新的機隊，釋放了這樣的潛力。我們相信，Wheels Up 仍走在正確的軌道上，我們的目標是在 2025 年全年實現正調整 EBITDA。

As we have strengthened the resiliency of our business model and invested in the future. We have also continued to strengthen what I believe is already the best team in the industry with three key hires. Matthew Knopf, our Chief Legal Officer, Megan Wells as EVP of enterprise planning and strategy and Michael Henney as SVP customer experience until he joined Wheels Up. Matthew served as senior Vice President and deputy general counsel at Delta Airlines from 2015 where he played a pivotal leadership role in the completion of Delta's many significant transactions and key joint venture restructurings his deep knowledge of the industry and our company has already been invaluable.

因為我們加強了業務模式的彈性並投資於未來。我們也持續加強我認為已經是業界最好的團隊，並聘請了三名關鍵員工。Matthew Knopf 是我們的首席法務官，Megan Wells 擔任企業規劃和策略執行副總裁，Michael Henney 擔任客戶體驗高級副總裁，直到他加入 Wheels Up。Matthew 自2015 年起擔任達美航空高級副總裁兼副總法律顧問，在達美航空的許多重大交易和關鍵合資企業重組的完成中發揮了關鍵的領導作用，他對行業和我們公司的深入了解已經非常寶貴。

Megan joins us following her tenure as Chief Investment Officer at Vista Global and her dynamic background, deep private aviation experience and focus on driving strategic growth will be integral in the development of our long term growth strategy.

Megan 在擔任 Vista Global 首席投資長後加入我們，她充滿活力的背景、深厚的私人航空經驗以及對推動策略成長的關注將成為我們長期成長策略制定中不可或缺的一部分。

Michael joined us just this week in the role of SVP customer experience. Following his tenure at Delta, he will be leading our efforts to drive a consistently excellent experience at all of the customer touch points across our enterprise.

Michael 本週剛加入我們，擔任客戶體驗資深副總裁。在達美航空任職後，他將領導我們努力在整個企業的所有客戶接觸點推動始終如一的卓越體驗。

Before I turn things over to Eric, I also wanted to provide a brief update on our search for our permanent CFO the industry has taken notice of the progress we're making as a company, the team we are building and the path we're on for the future. As a result, we have seen strong interest in the role from several great candidates and are working our way through the selection process which we expect to conclude by the end of the year.

在我把事情交給艾瑞克之前，我還想簡單介紹一下我們尋找永久財務長的最新情況，業界已經注意到我們作為一家公司所取得的進展、我們正在建立的團隊以及我們正在走的道路。因此，我們看到了幾位優秀候選人對該職位的強烈興趣，並正在努力完成選拔過程，預計在今年年底前完成。

In the meantime, I want to extend my deepest appreciation to Eric for his partnership and the great job he's been doing while we continue our search. And with that, let me turn it over to Eric to run through the details.

同時，我要向艾瑞克表示最深切的謝意，感謝他的合作以及他在我們繼續搜尋過程中所做的出色工作。接下來，讓我將其交給 Eric 來詳細說明。

Thanks George.

謝謝喬治。

It is great to be with you all today.

今天很高興能和大家在一起。

My remarks, I will focus on four topics.

我的發言主要集中在四個方面。

One, a review of our third quarter results including the continued momentum in our business.

一是回顧我們第三季的業績，包括我們業務的持續成長動能。

Two, the positive impact we believe our fleet modernization will have on our business.

第二，我們相信機隊現代化將對我們的業務產生正面影響。

Three the Bank of America transaction and how that is expected to roof finance our existing aircraft debt, finance the grand new transaction and that liquidity to our balance sheet and four, our confidence in our journey to build the best run private aviation company starting with a review of the third quarter results revenue was 194 million in Q3 roughly flat sequentially highlighting the stability of our business starting in the first quarter of this year.

三是美國銀行的交易，以及預計如何透過該交易為我們現有的飛機債務提供融資，為新的大型交易提供資金，並為我們的資產負債表提供流動性；四，我們對建立運營最佳的私人航空公司的旅程充滿信心第三季度業績回顧 第三季度營收為 1.94 億美元，與上一季度大致持平，凸顯了我們從今年第一季開始業務的穩定性。

As we have mentioned previously, the year over year comparison was impacted by the simplification of our operations including the exit of our aircraft management and our aircraft sales businesses. And last year's program changes that allowed us to exit on profitable flight revenue going forward. We believe our current commercial offering and fleet modernization plans set us up to resume growth in 2025.

正如我們之前提到的，年比比較受到我們營運簡化的影響，包括退出飛機管理和飛機銷售業務。去年的計劃變更使我們能夠在未來的航班收入盈利的情況下退出。我們相信，我們目前的商業產品和機隊現代化計劃將使我們能夠在 2025 年恢復成長。

The decline in membership revenue and members is due to our streamlined product portfolio that gives our customers the option to join up as a member with special benefits or fly up using our more accessible charter offering private jet gross bookings which captures the full value of our private jet flying was down 20% year over year but only 6% sequentially reflecting relative stability of our business.

會員收入和會員數量的下降是由於我們精簡的產品組合，使我們的客戶可以選擇加入為會員並享受特殊優惠，或使用我們更方便的包機服務來提供私人飛機總預訂，從而充分利用我們私人飛機的全部價值。

We had previously referred to these metrics aslight transaction value versus gross bookings but revised the title to align with similar metrics reported by other companies such as Uber and Lyft Private Jet gross bookings per live flight leg was 15,990 a 4% year over year and reflects the underlying stability of our business and what customers are spending to fly with us on each flight.

我們先前將這些指標稱為輕交易價值與總預訂量，但修改了標題，以與Uber 和Lyft Private Jet 等其他公司報告的類似指標保持一致。 ，年成長4%，反映了我們業務的基本穩定性以及客戶每次搭乘我們航班的花費。

Total growth bookings which represent growth bookings for private jet group charter and cargo. We're down 16% year over year but only 4% sequentially in the third quarter, outperforming private jet gross bookings due to strong group charter revenue from the travel ahead of the Presidential elections.

總增長預訂量代表私人飛機團體包機和貨運預訂量的增長。我們的第三季年減 16%，但環比僅下降 4%，由於總統選舉前旅行帶來的強勁團體包機收入，其表現優於私人飛機總預訂量。

We expect both private jet and total gross bookings will be up sequentially in the fourth quarter.

我們預計第四季私人飛機預訂量和總預訂量將較上季成長。

In addition, in June, we streamlined our product portfolio to make it easier for customers to fly with us using our leading charter capabilities.

此外，我們在 6 月簡化了產品組合，使客戶能夠更輕鬆地利用我們領先的包機能力搭乘我們的航班。

We expect to introduce additional customer metrics in the future that we believe will provide additional transparency on important drivers of our business today.

我們希望在未來引入更多的客戶指標，我們相信這將為我們當今業務的重要驅動因素提供更多的透明度。

Our adjusted contribution margin was 14.8% in the quarter. Up significantly sequentially from 7.8% in Q2 and 1% in Q1.

本季調整後的邊際貢獻率為 14.8%。較第二季的 7.8% 和第一季的 1% 顯著上升。

And as George mentioned, the highest level since we have been a public company that improvement was driven in part by a 26% year over year increase in asset utilization and is a reflection of the tough choices we made over the past year that we believe have made us a stronger company today adjust, but the loss was 20 million for the quarter.

正如喬治所提到的，自我們成為上市公司以來的最高水平，這種改善在一定程度上是由資產利用率同比增長26% 推動的，這反映了我們在過去一年中做出的艱難選擇，我們認為這些選擇已經在今天調整使我們成為一家更強大的公司，但該季度虧損2000萬。

Improving by 17 million sequentially, that reflects the higher adjusted contribution margin that highlights the structural changes we have made to our business as operating costs were flat. Sequentially, that net loss was 58 million for the quarter. Improving by 40%. Sequentially, prepaid blocks were 147 million for the quarter. Up 86% nearly double the level a year ago.

環比增加了 1700 萬，這反映了調整後貢獻率的提高，凸顯了我們在營運成本持平的情況下對業務所做的結構性變化。因此，該季度的淨虧損為 5,800 萬美元。提高 40%。本季預付費塊數量為 1.47 億。成長 86%，幾乎是一年前水準的兩倍。

We are pleased with our increased traction with corporate customers, with corporate block sales up over 50% year over year.

我們對企業客戶的吸引力不斷增加感到高興，企業大量銷售年增超過 50%。

The strength in prepaid block sales mirrors improved service metrics, the continued strength of our delta relationship and highlight how our customers are increasingly committing to us.

預付費大宗銷售的實力反映了服務指標的改善、我們三角洲關係的持續實力，並突顯了我們的客戶對我們越來越多的承諾。

We believe the fleet modernization plans that George articulated will position us for continued success.

我們相信喬治提出的機隊現代化計畫將為我們持續成功奠定基礎。

We have continued to make great progress in reducing our cash burn with operating cash flow improving 44% sequentially and 94% year over year.

我們在減少現金消耗方面持續取得巨大進展，營運現金流環比成長 44%，年增 94%。

My cash outflow of 250 million a year ago to 15 million in the current quarter.

我的現金流從一年前的2.5億減少到本季的1500萬。

That result is a combination of the strength and block sales benefits from the structural changes we have made as well as improved cash management and continued stability in our deferred revenue balance.

這項結果是我們所進行的結構性變革、改進的現金管理和遞延收入餘額的持續穩定性所帶來的實力和大宗銷售收益的結合。

Turning to our customer performance metrics a year ago, we started on the path to provide transparency to our customers, committing to provide our customer metrics each quarter for the third quarter. Our completion rate was in line with our target of 98%.

談到一年前的客戶績效指標，我們開始為客戶提供透明度，承諾在第三季每季提供客戶指標。我們的完成率符合 98% 的目標。

However, our on time performance which we define as the percent of flights departing within 60 minutes of scheduled time was 82% and below our target for the quarter, partially driven by summer weather, air traffic control delays and certificate conformity activity Brande which measured days in the quarter with zero cancellations were 19 while that is down sequentially, it was our third best quarter since we started tracking this metric nearly three years ago.

然而，我們的準點率（我們定義為在預定時間60 分鐘內起飛的航班的百分比）為82%，低於我們本季度的目標，部分原因是夏季天氣、空中交通管制延誤和Brande 測量天數的證書合格活動零取消預訂的季度有 19 個，雖然連續下降，但這是自我們近三年前開始追蹤該指標以來第三好的季度。

Our team is working hard every day to improve operational reliability and we look forward to further benefits as we migrate to our newer fleet.

我們的團隊每天都在努力提高營運可靠性，我們期待在遷移到新機隊時獲得更多好處。

As George indicated, we expect the addition of the Phenom and challenger aircraft into our fleet will significantly lower our operating costs for several reasons.

正如喬治所指出的，出於多種原因，我們預計飛鴻和挑戰者飛機加入我們的機隊將顯著降低我們的營運成本。

First, is that maintenance availability is anticipated to be 25% to 50% higher than the aircraft they are replacing that drives higher asset utilization and lower hourly cost.

首先，維護可用性預計將比更換的飛機高出 25% 至 50%，從而提高資產利用率並降低每小時成本。

Second, we expect improved reliability will lead to greater schedule integrity which lowers recovery costs and makes crew scheduling much more efficient.

其次，我們預期可靠性的提高將帶來更大的調度完整性，從而降低恢復成本並使機組調度更有效率。

Lastly, the consolidation of our fleet down to three fleet types including our turbo crops will greatly simplify our operations.

最後，將我們的機隊整合為三種機隊類型（包括渦輪機）將大大簡化我們的營運。

We're managing the five aircraft models we have today which all require specific crews, scheduling and maintenance processes.

我們現在管理五種飛機型號，它們都需要特定的機組人員、調度和維護流程。

When you put it all together, our fleet modernization plan is expected to allow us to deliver an elevated level of financial performance and drive the next stage of our growth starting now and over the next several years, turning to liquidity, we ended the quarter with total liquidity plus reserve deposit of 236 million which includes cash and cash equivalent, the undrawn revolver from Delta and the $20 million double etc reserve deposit.

當你把所有這些放在一起時，我們的機隊現代化計劃預計將使我們能夠提供更高水平的財務業績，並從現在開始和未來幾年推動我們下一階段的增長，轉向流動性，我們在本季結束時總流動資金加上準備金存款為 2.36 億美元，其中包括現金和現金等價物、達美航空未提取的左輪手槍以及 2000 萬美元的雙倍準備金存款。

Looking ahead to Q4, we are working to close a new up to $332 million revolving credit facility with the Bank of America, with the Delta credit support. That facility is expected to be used to fund the $105 million acquisition of brand use fleet and refinance our existing double etc aircraft debt that anticipated financing. In combination with proceeds from current aircraft sales under contract is expected to add up to 115 million of cash and liquidity to our balance sheet.

展望第四季度，我們正努力在達美信貸支持下與美國銀行達成高達 3.32 億美元的新循環信貸安排。該貸款預計將用於資助 1.05 億美元收購品牌使用機隊，並為我們現有的預期融資的雙等飛機債務進行再融資。加上目前合約下飛機銷售的收益，預計將為我們的資產負債表增加高達 1.15 億美元的現金和流動資金。

In addition, we expect to save over 500 basis points of cash interest compared with today's interest rates.

此外，與目前的利率相比，我們預計將節省超過 500 個基點的現金利息。

The five year facility has a revolver feature for the first three years that gives us added flexibility to sell our existing aircraft and finance newer aircraft purchases as we pay down debt, we expect our fleet modernization plans will be funded with this facility in conjunction with third party operating leases.

這五年貸款在前三年具有左輪手槍功能，這使我們能夠更加靈活地出售現有飛機並在償還債務時為購買新飛機提供資金，我們預計我們的機隊現代化計劃將與該貸款以及第三家公司一起獲得資助。

The citation 10 sale and lease transaction touched on earlier is expected to contribute to our cash position while providing us important flexibility to execute on our strategy to exit citation, 10 and swap leases for newer challenger aircraft. This deal enables an orderly transition from citation 10 to challengers over the next three years with expected proceeds from the Bank of America facility. The pending sale of our citation 10 fleet decently higher prepaid block sales and the acquisition of the grand new fleet. We expect our year end cash and liquidity position to improve from the end of the third quarter.

前面提到的 cite 10 銷售和租賃交易預計將有助於我們的現金狀況，同時為我們執行退出 cite 10 和更換新挑戰者飛機的策略提供重要的靈活性。這筆交易使公司能夠在未來三年內有序地從引用 10 過渡到挑戰者，並預計從美國銀行貸款中獲得收益。我們即將出售我們的 10 號機隊，預付大宗銷售要高得多，並收購大型新機隊。我們預計年終現金和流動性狀況將從第三季末開始改善。

You may recall this slide which we introduced last quarter to highlight the different phases of Wheels Up.

您可能還記得我們上季介紹的這張投影片，以突出顯示 Wheels Up 的不同階段。

After over a year of hard work and structural changes. I'm pleased to report that we are nearing the end of our transition stage Wheels Up. Today is a much stronger company with a clear path forward.

經過一年多的努力和結構調整。我很高興地報告，我們的過渡階段「Wheels Up」已接近尾聲。今天是一家更強大的公司，有著清晰的前進道路。

As you heard today, we are at the dawn of a new era for Wheels Up and turning our sites to offense as we look to refresh our fleet with newer aircraft and look forward to a resumption of growth in our business.

正如您今天所聽到的，我們正處於 Wheels Up 新時代的黎明，我們希望用更新的飛機更新我們的機隊，並期待我們的業務恢復增長，從而使我們的網站變得進攻。

And by that, I mean, sustainable and profitable growth.

我的意思是，可持續和盈利的增長。

Our goal remains to be the best run private aviation company globally, leveraging the strength of our network platform, capitalizing on our competitive advantages and delivering a great experience for our customers with that. Let me now turn it back to George for his concluding remarks.

我們的目標仍然是成為全球營運最好的私人航空公司，利用我們網路平台的優勢，利用我們的競爭優勢，為我們的客戶提供良好的體驗。現在讓我請喬治作總結發言。

Thanks Eric.

謝謝埃里克。

I'm incredibly proud of the progress we made over the last year and in particular over the last quarter. Here it Wheels Up.

我對我們去年，特別是上個季度取得的進展感到非常自豪。它在這裡轉動起來。

I look forward to the next phase of our customer experience journey linked to our financial journey as we complete our fleet transition and continue to standardize an elevated customer experience across our fleet.

隨著我們完成機隊轉型並繼續標準化整個機隊的提升客戶體驗，我期待著與我們的財務之旅相關的下一階段的客戶體驗之旅。

To that end, we are hard at work and in discussions with Bombardier, Embryo Air and other third party providers on other elements of our product offering that create an elevated consistent customer experience worth repeating including standardized livery and interiors. And we expect to have more to share with you in the coming months.

為此，我們正在努力工作，並與龐巴迪、Embryo Air 和其他第三方供應商就我們產品的其他元素進行討論，以創造值得重複的更高的一致客戶體驗，包括標準化的製服和內飾。我們希望在未來幾個月內與您分享更多內容。

As always, I want to take this opportunity to thank our best in class team here at Wheels Up for their dedication to our culture of continued excellence and the hard work that has enabled all of the existing progress we've shared with you today.

一如既往，我想藉此機會感謝 Wheels Up 一流的團隊，感謝他們對我們持續卓越文化的奉獻，以及我們今天與您分享的所有現有進展的辛勤工作。

It has been an incredibly busy few months. None of this would be possible without the dedication and commitment of our amazing team through our strategic partners, Delta Airlines, I want to extend my appreciation for their continued confidence in the progress we've made and the future we're creating together as evident, not only by their support of our prospective financing, but of the recent commitment from Delta DK Wheels, Cox white box and core capital to extend their lock up in support of our long term plan.

這幾個月過得異常忙碌。如果沒有我們出色的團隊透過我們的策略夥伴達美航空的奉獻和承諾，這一切都不可能實現。是因為他們對我們的預期融資的支持，也因為Delta DK Wheels、Cox White Box 和核心資本最近承諾延長鎖定期以支持我們的長期計劃。

And most importantly, thank you once again to our members and customers for their continued loyalty. We take great pride and satisfaction in your feedback that our hard work has paid off and we are delivering you a more consistently excellent experience. We are thrilled to be introducing two of the most popular aircraft in private aviation into our offerings in service of executing our vision to deliver the most customer centric and valuable aviation solutions in the industry.

最重要的是，再次感謝我們的會員和客戶的持續忠誠。我們對您的回饋感到非常自豪和滿意，我們的努力得到了回報，我們正在為您提供更一致的卓越體驗。我們很高興能夠將私人航空領域最受歡迎的兩架飛機引入我們的產品中，以實現我們的願景，即提供業內最以客戶為中心、最有價值的航空解決方案。

Thank you for your interest.

感謝您的關注。

This concludes today's call.

今天的電話會議到此結束。