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, Knighthead Capital Management, and Certares Management with a $500 million capital infusion.
This significant investment will grant the investors 95% ownership and prevent Wheels Up from declaring bankruptcy, which the company had been considering due to mounting financial losses.
Wheels Up has consistently reported widening net losses and dwindling cash reserves, attributed to high operating costs, a complex acquisition strategy, and generous member policies despite a surge in private jet demand.
As the new majority owner, Delta plans to leverage its expertise to drive strategic, operational, and financial improvements, including a likely overhaul of Wheels Up's membership program and business focus to achieve 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.