After buying 95% of the company in 2023 alongside a group of other investors, Delta is pledging more support for private jet firm Wheels Up. On Tuesday, the company announced sweeping changes to its fleet strategy along with more financing.
The jet fleet changes include a pivot to Phenom 300 series and Challenger 300 series aircraft, retiring its existing light and midsize jets over the next three years. Wheels Up also secured an additional credit facility of up to $332 million.
Delta is expected to provide credit support for the new financing, Wheels Up shared in a press release.
“In the year since we’ve invested in Wheels Up, their operational performance, financial progress and the successful revamp of their customer offering have validated our decision to embark on this one-of-a-kind strategic partnership,” said Ed Bastian, CEO of Delta, in the release.
Bastian added that he is “more confident than ever” in the private aviation firm. Last year, Delta along with two other investor groups injected $500 million into the financially ailing company.
In August, the company reported a Q2 2024 net loss of approximately $97 million along with year-over-year membership attrition in the 20% range. During the first half of 2024, Wheels Up lost $194 million.
But executives of the firm see light at the end of the tunnel with expectations of posting a profit by the end of this year, according to Private Jet Card Comparisons. Wheels Up saw a 40% reduction in losses during the second quarter.
Editor’s Note: This story was updated on Wednesday, Oct. 23, 2024 at 11:53 a.m. ET to clarify Delta’s ownership stake in Wheels Up as part of a broader group of investors.
