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 other investors with a $500 million capital infusion, preventing its bankruptcy.
The deal grants Delta and other investors 95% ownership due to Wheels Up's significant financial struggles, including widening net losses, rapid cash burn, and unsustainable operational policies.
Delta and the new investors aim to implement strategic, operational, and financial improvements, including a likely overhaul of Wheels Up's membership program, to guide the company towards profitability and restore customer confidence.

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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.