Wheels Up Completes $332M Financing, Acquires 17 Jets

Wheels Up recently announced the completion of a $332 million revolving credit facility and the acquisition of 17 Embraer Phenom 300/300Es from GrandView Aviation. The latter company will continue to operate the light jets on behalf of the former until they are added to Wheels Up's air operator certificate in first-quarter 2025.

The revolving notes facility, secured through Bank of America and supported by Delta Air Lines, will refinance the existing Wheels Up fleet, secure the purchase of the Phenom light jets, and provide for additional borrowing access. The GrandView deal includes related maintenance assets and customer programs.

According to CEO George Mattson, the Phenom 300s will immediately be integrated into Wheels Up’s charter and membership offerings, coinciding with the busy holiday travel season. The company’s fleet transition also includes consolidating its aircraft types, focusing on a smaller selection of models for improved operational efficiency. 

In addition to the Phenom acquisition, Wheels Up recently said it is exploring fleet expansion opportunities with preowned Challenger 300/350 jets. This is an effort to reduce the average age of its aircraft by 10 years and improve service flexibility and reliability.

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Wheels Up Refreshes Jet Fleet With $332 Million Credit Facility

The company will acquire GrandView Aviation’s entire Phenom 300 fleet.

“Our fleet transition starts today with the strategic acquisition of GrandView's Phenom fleet...By expanding our fleet with newer, more capable aircraft, we are positioning Wheels Up to remain at the forefront of our industry,” Mattson said.

Earlier this year, Wheels Up reported financial improvements in the second quarter, showing reduced losses and a strengthened balance sheet under new leadership. The company’s revenues declined 41% year over year to $196.3 million, largely due to the sale of its aircraft sales and management business. However, net losses were reduced by 40% to $97 million, and operating costs fell by 63% compared to the first quarter.

Wheels Up also saw growth in its charter business, which represents nearly two-thirds of flight transaction value, and its prepaid block sales increased by 50% year-over-year. The company’s liquidity improved to $261 million, and it continues to target profitability by the end of 2024, citing ongoing efforts to optimize scheduling, pricing, and fleet utilization.