Operating Margin - Wheels Up Experience Inc (NYSE:UP)

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Price: 0.672 USD -4.49%

Market Cap: 485m USD

-35.9%

Current

-29%

Average

4.8%

Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin

-35.9%

Operating Profit

-271.7m

Revenue

757.5m

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
US		Wheels Up Experience Inc NYSE:UP	484.1m USD	-36%
US		Delta Air Lines Inc NYSE:DAL	46.3B USD	10%
US		United Airlines Holdings Inc NASDAQ:UAL	36.9B USD	9%
UK		International Consolidated Airlines Group SA LSE:IAG	19.4B GBP	12%
CH		Kinarus Therapeutics Holding AG SIX:KNRS	19.5B CHF	N/A
IN		Interglobe Aviation Ltd NSE:INDIGO	2T INR	14%
US		Southwest Airlines Co NYSE:LUV	21.7B USD	1%
CN		Air China Ltd SSE:601111	152.1B CNY	0%
IE	R	Ryanair Holdings PLC LSE:RYA	15.4B EUR	15%
CN		China Southern Airlines Co Ltd SSE:600029	136.3B CNY	4%
CN		China Eastern Airlines Corp Ltd SSE:600115	122.6B CNY	1%

Wheels Up Experience Inc
Glance View

Economic Moat

None

Market Cap

484.1m USD

Industry

Airlines

In the evolving landscape of private aviation, Wheels Up Experience Inc. has carved a niche for itself, setting out to democratize the exclusive world of private flying. The company was founded in 2013 by Kenny Dichter, who previously co-founded Marquis Jet, a pioneer in the field of private jet card membership programs. Wheels Up appeals to a modern clientele by offering a subscription-based model that grants members access to a fleet of aircraft, without the significant upfront costs and commitments of jet ownership. By leveraging an innovative technology-driven approach, the company streamlines procedures like booking and in-flight experience through a sophisticated digital platform, making the world of private aviation accessible not just to business elites but a wider audience of enthusiastic travelers. Wheels Up makes money primarily through its membership fees and usage rates, which vary depending on the chosen tier of service. From "Connect" to "Core" and "Business" levels, each plan offers different access levels to their fleet—ranging from King Air 350i turboprops to large-cabin jets—customizing the experience according to members’ needs and preferences. Additionally, Wheels Up capitalizes on partnerships with major brands and companies, providing corporate solutions and charter services. By using dynamic scheduling to maximize fleet usage and partnering with third-party operators to supplement its own fleet, Wheels Up aims to align economic efficiencies with customer satisfaction, driving growth while striving to maintain a high service standard that resonates with its diverse clientele.

View UP Analysis

UP Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

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Wheels Up Experience Inc
NYSE:UP