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

Verified

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

Key Takeaways:

On-demand private aviation company Wheels Up is being bailed out by Delta Air Lines and a consortium of investors, receiving a $500 million capital infusion in exchange for 95% ownership.
This intervention prevents Wheels Up from declaring bankruptcy, which it was considering due to significant financial losses from high operating costs and customer-centric policies.
Under new leadership heavily influenced by Delta, the company is expected to undergo major operational and membership program overhauls to achieve profitability and restore confidence in the broader private aviation industry.

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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.