BREAKING – Wheels Up gets Delta ‘capital infusion’, announces LoI with Airshare
Wheels Up has received a short-term “capital infusion” from Delta Air Lines as it continues discussions around strategic business partnerships.
The value of that capital has not been disclosed. Delta has a 20% stake in Wheels Up.
The operator, which was due to hold its second quarter results investor’s call today, has also announced entering into a non-binding letter of intent (LoI) with US operator Airshare. The letter could see the Airshare acquire Wheels Up’s non-core aircraft management business.
The company said will share more details as available and has postponed its scheduled earnings communications.
Just over two years since Wheels Up listed on the New York Stock Exchange, the company’s initial $10 share price has fallen tp $2.37 (after a 10-for-1 reverse stock split). It first-quarter announcement was dominated by the departure of founder Kenny Dichter as CEO. The focus for the next earnings communication will largely be on cash. At the end of March, it had $363m and could be getting close to breaking debt covenants.
See last week’s One Minute Week for more details on the state of play at Wheels Up.