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 will avoid bankruptcy through a $500 million capital infusion.
Delta Air Lines, Knighthead Capital Management, and Certares Management will collectively acquire a 95% ownership stake in Wheels Up for the bailout.
The company's financial struggles, stemming from consistent net losses and high operating costs, necessitate significant operational and membership program overhauls under the new leadership.
This bailout is considered crucial for maintaining confidence within 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.