Established in 2013, Wheels Up is one of the largest private aviation companies in the United States. Operating under a membership/on-demand framework, the company offers its members the convenience of booking private aircraft from both its own fleet and external operators through a user-friendly mobile application.

Wheels up, belly up

When Wheels Up was founded, it announced an order for 105 Beechcraft King Air 350i turboprops. With a focus on non-hub markets that were not well-served by commercial airlines, Wheels Up’s membership grew to more than 1,000 within just a year. By 2018, the company had sold 5,379 individual and 379 corporate memberships and was operating a fleet of 72 King Airs and 20 Cessna Citation jets, according to SKIES Mag.

When 2020 rolled around, Wheels Up had made its name as the second-largest private aviation company in the US, having acquired several private jet operators, including Delta’s private jet division, as reported by CNBC. The company went public less than a year later, becoming the first private aviation company to be publicly traded on the New York Stock Exchange.

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Unfortunately, despite its successful start, Wheels Up soon began facing mounting losses – stock prices fell from a high of $10 to a mere 40 cents – and by 2023, bankruptcy loomed. That was when Delta Air Lines stepped in to save Wheels Up from going under, purchasing 95% (up from its previous share of 20% as the largest shareholder) of the company for $500 million.

Delta and Wheels Up

Wheels Up’s knight in shining armor – in the form of Delta Air Lines – has allowed the company to remain one of the largest private jet operators despite the recent turbulent turn of events.

Delta CEO Ed Bastian said in a statement:

“The partnership will create new opportunities for Wheels Up to drive strategic, operational and financial improvements for its customers in the months and years ahead.”

Photo: Wheels Up

Likewise, the acquisition of Wheels Up also benefits Delta. As part of the purchase agreement, Wheels Up members can use their credits to purchase tickets on Delta, with access to the airline’s SkyMiles frequent flyer program, per AVweb. This arrangement will help Delta attract more high-end travelers from Wheels Up’s membership to its customer base.

What’s next for Delta and Wheels Up

Today, Wheels Up has close to 12,000 members, and Delta markets its private jet partnership with the company as a service offering that “empowers individuals, families, businesses and whole aircraft owners to experience private aviation in an extraordinary way.”

Photo: Wheels Up

In an exclusive interview with Forbes, interim CEO of Wheels Up, Todd Smith, mentioned:

“We continue to feel there are a number of macro tailwinds behind this business and this industry and if you have the product mix, the right delivery model, and the right strategic relationships, which we think we have now, then we should be in a really strong position to capitalize on that. What Wheels Up and Delta offer is unique in the market. There’s nothing else like it.”