Delta sees Wheels Up as a key part of its premium portfolio, even as the private aircraft operator faces financial turbulence. Delta CEO Ed Bastian expressed optimism on Wheels Up’s future during a recent Investor Day event.
The Atlanta-based airline leads an investor consortium that owns 95% of Wheels Up. Earlier this year, the private aviation firm moved its headquarters to Atlanta.
As private jet travel boomed during the COVID-19 pandemic, Bastian says Delta has since seen consumer shifts between Wheels Up and the airline’s premium first and business class products.
“Once things started to stabilize, those customers came back to Delta or to other commercial providers,” Bastian added. “… We got some work to do, but eventually it’s going to be [the] next step on our premium ladder.”
Despite continued quarterly losses, Wheels Up has reported some financial improvements this year. In Q3 2024, the company reported a net loss of $57.7 million, down from $114.8 million during the same period last year.
“No airline has ever been able to integrate commercial with a private opportunity,” Bastian continued. “We have Delta people inside Wheels Up … learning about the business and how we can schedule it, how we can price it, [and] how we can operationalize it. We’re the world’s best at all that stuff.”
In October, Wheels Up detailed plans to transition its jet fleets to Phenom 300 series and Challenger 300 series aircraft. It also secured additional financial backing from Delta.
“In the next couple years, I think you’re going to see that asset grow meaningfully and I think you’re going to see a lot of value that we create, not just for our business, but potentially as owners,” he concluded.
