(Reuters) – Wheels Up Experience said on Wednesday there was “substantial doubt” about its ability to continue operations, even as it received short-term funding from Delta Air Lines.
The company, which charters planes by the hour, has made a slew of restructuring measures this year, including job cuts and management changes.
Private jet traffic, which soared on demand from wealthy travelers during the pandemic, is now softening even as pre-owned planes sell more gradually.
North American business aviation flights were down 3.6% compared with July 2022, according to data from Argus International, which conducts research, among the services it provides to the business aircraft industry.
Delta said in a statement that it was providing a short-term capital infusion in the form of a secured promissory note as Wheels Up pursues strategic partnerships.
Wheels Up also said it had canceled an earnings call scheduled for Wednesday. The company said it had entered into a non-binding letter of intent for U.S. private jet operator Airshare to acquire Wheel’s Up’s non-core aircraft management business.
Wheels Up shares were up 8.3% at $2.60 in premarket trade.
(Reporting by Shivansh Tiwary in Bengaluru and Allison Lampert in Montreal; Editing by Vinay Dwivedi and Mark Potter)
