Wheels Up flies for now, but private-jet rivals see opportunity

Loss-making private jet firm Wheels Up Experience nabbed a key $500m lifeline but still faces turnaround challenges, as demand for private travel softens in the wake of the COVID-19 pandemic and rival operators lure some of their customers. Wheels Up avoided a possible bankruptcy when it secured backing from investors on Tuesday, including US carrier Delta. Shares rose 11% on Wednesday in midday trading. But the company still has work to do to become profitable in a more difficult environment, said business aviation consultant Brian Foley. Two operators have closed down since May in the face of diminished traffic and higher labor costs could force some private-jet operators out of business. "There will be some more casualties," Foley said. Rivals, meanwhile, say they have been picking up some of the company's customers. "I don't wish for turmoil in the market at all, but I'm an opportunist," said Jim Segrave, CEO of private operator FlyExclusive, who said his company has attracted customers from Wheels Up, the third-largest private-flight operator last year. Wheels Up said it is pleased with the response from customers. "We are in the middle of year-long meaningful improvement in our operational performance and service levels," the company said.<br/>