Wheels Up is in severe financial distress, having received emergency funding from Delta Air Lines while expressing "substantial doubt" about its ability to continue operations, leading to a nearly 45 percent stock drop.
To address its financial woes and focus on its core charter business, Wheels Up is selling its private jet management division to Airshare through a nonbinding letter of intent.
The acquisition is a strategic gain for Airshare, expected to significantly expand its managed fleet, strengthen its aircraft management business, and enhance service flexibility for its customers.
Wheels Up's current crisis follows a history of consistent financial losses since going public, declining active members and flight legs, cost-cutting measures, and a recent leadership shake-up.
The on-demand Part 135 provider, which reserves prepurchased time on airplanes from charter operators through a membership model, on Wednesday announced that it received emergency funding from Delta Air Lines, which owns one-fifth of the company. It postponed its earnings announcement, which was scheduled for Wednesday morning.
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Jack is a staff writer covering advanced air mobility, including everything from drones to unmanned aircraft systems to space travel—and a whole lot more. He spent close to two years reporting on drone delivery for FreightWaves, covering the biggest news and developments in the space and connecting with industry executives and experts. Jack is also a basketball aficionado, a frequent traveler and a lover of all things logistics.
