Wheels Up Financing From Delta
The large private aviation operator Wheels Up has just received additional funding from Delta Air Lines - one of its largest shareholders.
Founded in 2013, Wheels Up has grown to be the largest part 135 charter provider in North America, with overall revenue of $1.6bn in 2022. Its growth has been spurred by a series of acquisitions, including Delta Private Jets, and in 2021 it went public in a SPAC deal. But in a shake up, just a few months ago, founder and CEO Kenny Dichter stepped down and CFO Todd Smith became the interim CEO.
In today’s announcement the company simply said:
“Wheels Up Experience Inc. (NYSE: UP) is actively involved in discussions around strategic business partnerships for the company and today announced that Delta Air Lines has provided a short-term capital infusion to the company.”
There are no details on the amount that Delta provided. As one of the largest shareholders in Wheels Up the commercial airline has two senior executives on the board of directors, so has a lot of insight into Wheels Up state of affairs.
Wheels Up also cancelled its second quarter financial results release, commenting “The company will share more details as available and has accordingly postponed its previously scheduled earnings communications and cancelled the call for today.”
In a separate announcement, private aviation operator Airshare has signed a Letter of Intent to purchase Wheels Up's aircraft management business. This deal is expected to close in the third quarter of 2023,
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