Delta is taking control of Wheels Up
08-16-2023, 01:13 PM
#1
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Delta is taking control of Wheels Up
https://www.ainonline.com/aviation-n...ource=hs_email
-A consortium led by Delta is taking over 95% of Wheels Up.
-Prior to this Delta was WU's biggest share holder with a 20% stake.
-2nd quarter WU lost $161M on revenue of $335M
-Prior to this event WU was in danger of violating covenants of it's loan against it's owned aircraft, specifically the cash on hand requirement.
-A consortium led by Delta is taking over 95% of Wheels Up.
-Prior to this Delta was WU's biggest share holder with a 20% stake.
-2nd quarter WU lost $161M on revenue of $335M
-Prior to this event WU was in danger of violating covenants of it's loan against it's owned aircraft, specifically the cash on hand requirement.
Wow!
09-11-2023, 12:09 PM
#3
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Delta pumping $15M more into Wheels Up
From AIN:Delta Air Lines Pumps Another $15 Million into Wheels Up
Wheels Up has tapped Delta Air Lines for another $15 million in short-term capital infusion, bringing its total indebtedness to the U.S. carrier to $60 million from funds received since August 8. The cash-strapped private aviation group revealed the transaction late Friday in a Form 8-K filed with the U.S. Securities and Exchange Commission. The need to seek additional cash from Delta suggests that Wheels Up continues to record large monthly operating losses.
On August 15, Wheels Up announced that Delta and investment firms Certares and Knighthood would receive 95 percent of the company’s stock in exchange for a loan of $400 million plus a $100 million “liquidity facility” from Delta. In its latest quarterly financial statement, Wheels Up reported $161 million in losses and $335 million in revenue during the second quarter of this year while seeing its available cash erode from $363 million to $152 million—close to a $125 million minimum required by loan covenants.
Wheels Up shares have surged 50 percent in the last week, giving the company a market capitalization of $67 million. Over the last year, Wheels Up shares have shed 85 percent of their value, adjusted for a reverse stock split enacted by the company in June.
Wheels Up has tapped Delta Air Lines for another $15 million in short-term capital infusion, bringing its total indebtedness to the U.S. carrier to $60 million from funds received since August 8. The cash-strapped private aviation group revealed the transaction late Friday in a Form 8-K filed with the U.S. Securities and Exchange Commission. The need to seek additional cash from Delta suggests that Wheels Up continues to record large monthly operating losses.
On August 15, Wheels Up announced that Delta and investment firms Certares and Knighthood would receive 95 percent of the company’s stock in exchange for a loan of $400 million plus a $100 million “liquidity facility” from Delta. In its latest quarterly financial statement, Wheels Up reported $161 million in losses and $335 million in revenue during the second quarter of this year while seeing its available cash erode from $363 million to $152 million—close to a $125 million minimum required by loan covenants.
Wheels Up shares have surged 50 percent in the last week, giving the company a market capitalization of $67 million. Over the last year, Wheels Up shares have shed 85 percent of their value, adjusted for a reverse stock split enacted by the company in June.
09-11-2023, 06:45 PM
#4
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Originally Posted by AirBear
From AIN:Delta Air Lines Pumps Another $15 Million into Wheels Up
Wheels Up has tapped Delta Air Lines for another $15 million in short-term capital infusion, bringing its total indebtedness to the U.S. carrier to $60 million from funds received since August 8. The cash-strapped private aviation group revealed the transaction late Friday in a Form 8-K filed with the U.S. Securities and Exchange Commission. The need to seek additional cash from Delta suggests that Wheels Up continues to record large monthly operating losses.
On August 15, Wheels Up announced that Delta and investment firms Certares and Knighthood would receive 95 percent of the company’s stock in exchange for a loan of $400 million plus a $100 million “liquidity facility” from Delta. In its latest quarterly financial statement, Wheels Up reported $161 million in losses and $335 million in revenue during the second quarter of this year while seeing its available cash erode from $363 million to $152 million—close to a $125 million minimum required by loan covenants.
Wheels Up shares have surged 50 percent in the last week, giving the company a market capitalization of $67 million. Over the last year, Wheels Up shares have shed 85 percent of their value, adjusted for a reverse stock split enacted by the company in June.
Wheels Up has tapped Delta Air Lines for another $15 million in short-term capital infusion, bringing its total indebtedness to the U.S. carrier to $60 million from funds received since August 8. The cash-strapped private aviation group revealed the transaction late Friday in a Form 8-K filed with the U.S. Securities and Exchange Commission. The need to seek additional cash from Delta suggests that Wheels Up continues to record large monthly operating losses.
On August 15, Wheels Up announced that Delta and investment firms Certares and Knighthood would receive 95 percent of the company’s stock in exchange for a loan of $400 million plus a $100 million “liquidity facility” from Delta. In its latest quarterly financial statement, Wheels Up reported $161 million in losses and $335 million in revenue during the second quarter of this year while seeing its available cash erode from $363 million to $152 million—close to a $125 million minimum required by loan covenants.
Wheels Up shares have surged 50 percent in the last week, giving the company a market capitalization of $67 million. Over the last year, Wheels Up shares have shed 85 percent of their value, adjusted for a reverse stock split enacted by the company in June.
09-12-2023, 06:08 PM
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Originally Posted by Busdriver91
I appreciate your fact based posting on WUP in the past months. As a previous pilot, I am also concerned and curious about the future of the company. Would you be willing to share your connection with WUP and why the commitment to provide these updates? Sorry if you mentioned it before…I don’t read everything on here.
I have a lot of time on my hands so I keep an eye on aviation news and post anything that might be of interest to APC users. I post about a lot of other airlines too, and as a former Military Aircraft Accident Investigator I stay up to date on the accidents/incidents.
09-12-2023, 06:12 PM
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Originally Posted by dera
Can anyone explain why Delta is so committed on Wheels Up? Seems a little fringy to their main business?
09-12-2023, 07:57 PM
#8
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Originally Posted by AirBear
Delta is on the hook for many millions of frequent flyer miles. And I mean many millions. It's a deal they made several years ago. Also, I think WU bought Delta Private Jets and Delta took a sizeable stake in WU as part of that deal. So it's in their best interest to keep WU solvent.
For magnitude, I bet its billions of FF miles. Few million miles is nothing on a balance sheet as they are valued at a few pennies each. I have over 1 mil across my accounts.
09-12-2023, 11:40 PM
#9
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Originally Posted by dera
Could you explain the frequent flyer deal? Im just interested as from the sidelines this never made any sense.
For magnitude, I bet its billions of FF miles. Few million miles is nothing on a balance sheet as they are valued at a few pennies each. I have over 1 mil across my accounts.
For magnitude, I bet its billions of FF miles. Few million miles is nothing on a balance sheet as they are valued at a few pennies each. I have over 1 mil across my accounts.
09-13-2023, 12:43 PM
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Originally Posted by Aviato
I thought I read in an aviation publication that Delta was on the hook for almost $1B worth of prepaid flight hours if WU went under. Would that mean 13,000 (looked it up) members flooding the front end of Delta jets for 'free' if the WU airplanes went away?
What is the Wheels Up Delta relationship?
The relationship dates to 2020, when Delta Private Jets combined with Wheels Up. Delta provides Wheels Up members with an array of benefits, including access to Delta flights, the opportunity to earn Delta SkyMiles and the ability to earn toward Medallion Status through spend on Wheels Up flights.Aug 15, 2023
The WU members get Delta miles for what they spend on WU. And they have prepaid hours that Delta would have to convert into FF miles if WU ceased operations.
I think this is a major reason Delta is propping up WU.
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