Private-jet firm Wheels Up seeks rescue funding

Wheels Up Experience just got a fresh liquidity boost from its largest shareholder, Delta. The struggling concierge jet-service firm has been seeking new financing from investors as its cash dwindles, according to people with knowledge of the situation. It has been working with Jefferies Financial Group Inc. and Kirkland & Ellis to explore options, including asset sales and cost cutting, to improve profitability. “Delta, which has a long history of supporting its partners, is providing a short-term capital infusion in the form of a secured promissory note as the company pursues strategic partnerships,” the airline’s representatives said in an emailed statement Wednesday. The carrier, which called Wheels Up “a valued Delta partner,” declined to disclose the amount of the note. Wheels Up could also get a cash injection from the sale of its non-core aircraft management business. Plans to sell those assets to Airshare are underway, according to a statement. The New York-based company, which lets customers book private charter flights by the hour, has garnered big name investors including former LVMH executives and the consumer-focused private equity firm L Catterton, but has reported losses in every quarter since it went public through a reverse merger with a blank-check company in mid-2021. As of March 31, Wheels Up had $363.2m of cash on hand, and an additional $36.6m of restricted cash. The company’s earnings report and conference call, previously scheduled for Wednesday, were canceled.<br/>