Wheels Up, a private jet operator, expresses concern about viability despite Delta’s financial support

Private jet operator Wheels Up has expressed concerns about its ability to survive, despite receiving financial support from Delta Air Lines. In a regulatory filing, the company stated that there is “substantial doubt” regarding its future due to the impact of the ongoing COVID-19 pandemic on its business. Although Wheels Up received $377.5 million from Delta in June, the company expects its revenue and profitability to be significantly impacted by reduced demand for private travel. The filing also mentioned potential liquidity constraints, indicating the uncertain future faced by the private jet operator amidst the current economic climate..

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Wheels Up founder and CEO Kenny Dichter discusses the industry-wide pilot shortage and the company’s path to profitability on ‘The Claman Countdown.’

Private aviation company Wheels Up says it is in danger of going belly-up and has received a temporary lifeline from investor Delta Air Lines as the once-aspiring “Uber of the sky” fights for survival.

The private jet operator warned in a Securities and Exchange Commission filing that if it is not able to secure new strategic investments and raise the capital it needs, “there is substantial doubt about its ability to continue” operating.

Several Delta Air Lines airplanes on a tarmac

Delta Air Lines planes at John F. Kennedy International Airport in Queens, N.Y., July 2, 2022. (REUTERS/Andrew Kelly/File Photo / Reuters Photos)

Ticker	Security	Last	Change	Change %
DAL	DELTA AIR LINES INC.	44.85	-0.17	-0.39%

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Delta, Wheels Up’s largest shareholder owning 20.67% of the company, confirmed Wednesday it has provided its “valued Delta partner” with a short-term cash injection but did not reveal the amount of the promissory note.

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Wheels Up had originally scheduled an earnings call for Wednesday but announced that morning it would be postponed for another date.

Ticker	Security	Last	Change	Change %
UP	WHEELS UP EXPERIENCE INC	1.31	-0.25	-16.03%

Wheels Up Experience, Inc.

In a media release, the company said it had also signed a non-binding letter of intent with another private jet operator, Airshare, to acquire Wheels Up’s aircraft management business.

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Wheels Up launched in 2013 with the aim of making private air travel possible for people by making it more affordable by leasing jets by the hour. It became the first private aviation company to trade on the New York Stock Exchange in 2021.

Wheels Up CEO Kenny Dichter breaks down the luxe aviation sector on ‘The Claman Countdown.’

Private jet traffic, which soared on demand from wealthy travelers during the pandemic, is now softening even as pre-owned planes sell more gradually.

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Wheels Up has already taken a slew of restructuring measures this year, including job cuts and management changes.

Reuters contributed to this report.

Private aviation company Wheels Up has warned it is at risk of going out of business and has received temporary financial support from investor Delta Air Lines. In an SEC filing, Wheels Up stated that if it does not secure new investments and raise the necessary capital, there is doubt about its ability to continue operating. Delta, as the largest shareholder in Wheels Up, has provided a short-term cash injection. Wheels Up has also signed a non-binding letter of intent with another private jet operator, Airshare, to acquire its aircraft management business. The company has already implemented several restructuring measures, including job cuts and management changes.

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