Delta, Others Invest $500M in Wheels Up Bailout

Short-term capital infusion is expected to help cash-strapped, on-demand private aviation firm avoid bankruptcy.

Jack Daleo

Tuesday, August 15, 2023 at 01:18 PM ET

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Wheels Up will avoid bankruptcy after being bailed out by Delta Air Lines and other investors. [Courtesy: Wheels Up]

Key Takeaways:

Wheels Up, an on-demand private aviation company, is being bailed out by Delta Air Lines and other investors with a $500 million capital infusion in exchange for 95 percent ownership to avert bankruptcy.
The company faced significant financial struggles, consistently posting net losses and burning through cash due to aggressive acquisitions and costly customer policies like capped hourly rates and free replacement aircraft.
Delta Air Lines, now the majority owner, aims to integrate its expertise to drive strategic, operational, and financial improvements, with new leadership and a likely overhaul of Wheels Up's membership program and business model.

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On-demand private aviation company Wheels Up is expected to be bailed out by Delta Air Lines and other investors.

Per a press release viewed by FLYING, the New York City-based company, which last week sought and received $15 million in emergency funding from the airline, will cede 95 percent ownership in exchange for a $500 million capital infusion from Delta, Knighthead Capital Management, Certares Management, and others.