
Wheels Up Gets Financial Lifeline from Delta Air Lines
An update on the struggling membership and charter company.
Aircraft membership and charter company Wheels Up canceled its second-quarter financial results release and investor call scheduled for yesterday and instead announced an unspecified, short-term cash infusion from Delta Air Lines, which owns 20 percent of Wheels Up. It also said it is pursuing “strategic options,” including the offloading of its aircraft management business, which Wheels Up termed a “non-core” asset, to business aircraft fractional, charter, management, and maintenance provider Airshare.
Wheels Up has not yet released a date for its rescheduled second-quarter financial information and earnings call. In the first quarter, the company posted a loss of $101 million and burned through $222 million in cash reserves. Last year, it posted $555 million in losses. Pre-market stock trading initially reacted favorably to the news, but by midday Wheels Up shares were down about 34 percent for the day.