Wheels Up Stock Plummets, Hires Restructuring Lawyers

Wheels Up Experience shares have taken a significant hit, dropping by 60.38% in value to close Thursday (June 22) at $1.24 a share due to the reported recent hiring of restructuring lawyers, which has sparked market speculation about its financial stability.

In a brief statement issued on Thursday (June 22), the New York City-based private jet charter service said it is continuing “to progress with redesigned programs to better serve its members and customers in support of our path to profitability.” The firm added that it is “working with a number of advisors and industry participants around securing new strategic investments, raising capital, and executing previously disclosed strategic divestitures.”

Wheels Up Experience is a provider of on-demand private aviation in the U.S. and one of the world’s largest private aviation companies. The company offers a variety of services, including private jet charters, aircraft management, and safety training. Its recent acquisition of Gama Aviation, a global aviation services company, has also contributed to the company’s positive outlook.

Wheels Up’s signature innovation is a pay-as-you-go model, in contrast to the costly subscription fees and minimum use requirements that generally go along with private aviation. Despite its la carte approach, the company also promises guaranteed availability and fixed one-way rates, meaning no ferry fees, though there is a membership fee to join.

In 2019, Delta Airlines announced that it would be combining its Delta Private Jets unit with Wheels Up and moving its fleet of private jets to Wheels Up’s direct control.

“This groundbreaking partnership will democratize private aviation, making the convenience of private jet travel accessible to more consumers,” Delta CEO Ed Bastian said at the time. “Wheels Up’s lifestyle experiences and innovative digital platform, combined with the scale and service of Delta Private Jets, helps further Delta’s mission of connecting people and communities worldwide through travel. This agreement is the latest step in Delta’s ongoing effort to build partnerships that extend Delta’s brand beyond its core business.”