Dive Brief:
- Private aviation company Wheels Up Experience appointed John Verkamp, a long-time executive with General Electric and GE Vernova, as its new CFO, replacing its interim finance chief Eric Cabezas, who stepped into the role in August after Todd Smith left the company for a new role, according to a Tuesday release and securities filing from the private jet firm.
- Verkamp, 45, who is expected to join the company on March 31, will receive an annual base salary of $550,000, be eligible to receive an annual incentive bonus with a target amount equal to 100% of his salary, and will receive 20 hours of flight time annually on the company’s King Air 350i aircraft in accordance with the company’s executive flight hours plan, according to the filing with the Securities and Exchange Commission.
- “We are excited to welcome John to Wheels Up at such a pivotal moment in our business transformation," said George Mattson, CEO of Wheels Up in a statement. "His extensive financial experience, strategic mindset and ability to drive impactful change in partnership with our commercial and operations teams will make him an outstanding addition to our executive team.”
Dive Insight:
The appointment comes as the Chamblee, Georgia-based company, which is in the midst of a cost-cutting initiative, reported in a Tuesday 10-K filing that it narrowed its net loss to $339.6 million last year compared to $487.4 million in 2023.
Mattson, in a statement in the company’s Tuesday Q4 and 2024 earnings release, said that the company ended 2024 in a “much stronger financial position,” noting its Q4 adjusted net loss was its lowest since going public, and stated that the company achieved “nearly breakeven performance” in December. The company posted an adjusted EBITDA loss of $11.3 million, compared to $38.12 million in the year-earlier period.
“The combination of long-term, foundational improvements to our operation and commercial engine and the early positive signs from our fleet modernization has provided solid momentum as we enter 2025 and work toward our long-term objective of building a resilient business model with a strong balance sheet and consistent profitability,” Mattson stated in the release.
The high-profile private jet company startup, launched by founder Kenny Dichter to “democratize” private jets and make them more affordable, had struggled with high costs and operating issues, according to a May 2023 CNBC report. But it got a lifeline in 2023 when it closed a $500 million investment by Delta Air Lines, Certrares Management, Knighthead Capital Management LLC and Cox Enterprises.
