Wheels Up
| Company type | Public (formerly), now majority owned by Delta Air Lines |
|---|---|
| Industry | Private aviation, air charter |
| Founded | 2013 |
| Founder | Kenny Dichter |
| Headquarters | New York City , United States |
Area served | United States, worldwide |
Key people | George Mattson (CEO), Adam Zirkin (Chairman) |
| Products | On-demand private aviation services, membership programs |
| Owner | Delta Air Lines (95% controlling interest as of August 2023) |
Number of employees | 2,500+ (2021) |
| Parent | Delta Air Lines |
| Website | wheelsup |
Wheels Up stands as a prominent provider of on-demand private aviation services within the United States and ranks among the largest worldwide. Established in 2013 by Kenny Dichter, the company operates on a membership and on-demand basis, allowing members to reserve private aircraft from its own fleet as well as third-party operators through a mobile application.
In August 2023, Delta Air Lines acquired a controlling 95% interest in Wheels Up, stabilizing the company amid financial challenges. By 2021, Wheels Up had generated revenues totaling US$1.19 billion and managed a fleet comprising 185 aircraft, supported by a workforce exceeding 2,500 employees. The executive team is led by CEO George Mattson and Chairman Adam Zirkin. The company’s main office is located in New York City.
History
Founded by Kenny Dichter in 2013, Wheels Up rapidly assembled its leadership team and secured an order valued at $1.4 billion for 105 Beechcraft King Air 350i turboprop aircraft, including associated maintenance services. The business focuses on serving non-hub markets that are often overlooked by commercial airlines and promotes its offerings through VIP experiences at prominent sports and cultural events.
By 2014, the membership base surpassed 1,000, with operations including 27 new King Airs and 10 refurbished Cessna Citation jets. After five years of growth, the company had sold over 5,700 memberships and owned a fleet of 72 King Airs alongside 20 Citations. In 2017 alone, Wheels Up logged nearly 60,000 flight hours covering almost 15 million miles. The King Air 350i remains a key asset in its fleet due to its short-field capabilities and seating for nine passengers.
Wheels Up sponsored American Pharoah during the 2015 Belmont Stakes Triple Crown win and became the Official Private Aviation Partner of the Miami Marlins in 2018. The company has also contributed to philanthropic efforts supporting breast and ovarian cancer awareness, highlighted by the delivery of a pink King Air 350i. In that same year, Wheels Up introduced Wheels Up Connect, a flight-sharing membership designed to make private aviation more accessible.
In June 2019, Wheels Up expanded by acquiring TMC Jets, a charter operator with a fleet of 24 light jets. Later that September, it purchased Avianis, a B2B platform that streamlines communication between operators and brokers. March 2020 saw the acquisition of Gama Aviation Signature, the largest Part 135 charter operator in the U.S. In April of that year, Wheels Up launched "Meals Up" alongside Russell Wilson and Feeding America to address food insecurity, contributing over 80 million meals to date.
Through strategic acquisitions including Delta Private Jets, TMC Jets, Gama Aviation Signature, Mountain Aviation, and other regional providers, Wheels Up has become the second-largest private aircraft operator in the United States, second only to NetJets.
In January 2022, Wheels Up announced plans to acquire Air Partner PLC, a UK-based global aviation services firm operating across four continents. By November 2022, it had formed a partnership with AirMed International to offer medical travel services to its members.
In October 2023, Kansas-based Airshare acquired Wheels Up’s private aircraft management division along with 90 airplanes and approximately 300 employees; meanwhile, Wheels Up maintained ownership of a fleet totaling 215 aircraft.
In November 2024, Wheels Up secured a $332 million revolving equipment notes facility from Bank of America to purchase GrandView Aviation’s fleet consisting of 17 Embraer Phenom 300 and 300E jets along with maintenance resources and customer programs—markedly enhancing its operational scope and service portfolio.
Financing
In January 2018, CEO Kenny Dichter revealed that Wheels Up had engaged Bank of America and Goldman Sachs to investigate potential "strategic opportunities."
On December 9, 2019, Delta Air Lines acquired a stake in Wheels Up, becoming its principal investor and integrating it with Delta Private Jets in early 2020. This consolidation resulted in a combined fleet totaling 190 business aircraft. The transaction was finalized on January 29, 2020.
Wheels Up became the inaugural private aviation firm to be publicly listed on the New York Stock Exchange on July 14, 2021, trading under the symbol $UP. This followed its merger with the special-purpose acquisition company Aspirational Consumer Lifestyle Corp.
By May 2023, the company experienced executive turnover and substantial financial setbacks since its public debut less than two years earlier. Facing the possibility of NYSE delisting, Wheels Up aimed to restrict losses in 2023 to $130 million and pursue profitability in the following year.
Founder and CEO Kenny Dichter stepped down on May 9, 2023, amid escalating losses and bankruptcy speculation. Board member Ravi Thakran assumed the role of executive chairman, while CFO Todd Smith was appointed interim CEO. The stock price had plummeted from $10 to $0.40, with company valuation decreasing from $2 billion to $100 million. First-quarter 2023 results revealed a $101 million loss, an increase of $12 million compared to the previous year.
Dichter’s departure package included a two-year annual salary of $950,000, continued board membership, a lump sum payment of $3 million, a prorated bonus, health coverage, and entitlement to 200 hours of company aircraft usage per year.
Industry advisors suggested Wheels Up might seek additional funding from Delta, consider going private again, pursue capital raises, or explore bankruptcy restructuring options—though the company denied any plans for bankruptcy.
Revenue for the first quarter of 2023 rose by $26 million year-over-year to reach $352 million; however, net losses increased by $12 million to total $101 million. Adjusted EBITDA losses remained steady at $49 million year-over-year. Cash reserves declined from $586 million to $363 million.
Following reports on June 22, 2023, that Wheels Up had engaged a law firm specializing in financial restructuring, shares dropped by half. As of mid-2023, profitability remained elusive for the company.
In early July 2023, interim CEO Todd Smith received a salary boost of $150,000 along with an increased bonus target of 150%, while board member Ravi Thakran earned an annual compensation of $648,000 plus flight privileges.
By August 9, 2023, Wheels Up disclosed significant uncertainty about its ability to sustain operations despite capital support from Delta. The company delayed its second-quarter earnings call and announced intentions to divest aircraft management assets to Airshare.
On August 14, 2023, Wheels Up reported a working capital shortfall amounting to $720.8 million. The following day, Delta Air Lines acquired a controlling interest of 95% for $500 million, taking over after previously holding a 20% stake. Under this arrangement, Wheels Up members can apply credit balances toward Delta ticket purchases and participate in Delta’s SkyMiles program with enhanced earning opportunities—initiatives expected to draw more affluent travelers to Delta.
See also
References
- Articles with short description
- Fractional aircraft ownership companies
- 2013 establishments in New York City
- Aircraft leasing companies
- Companies based in New York City
- American companies established in 2013
- Online companies of the United States
- Companies listed on the New York Stock Exchange
- Special-purpose acquisition companies
- Air charter
- Transportation companies based in New York City
- 2023 mergers and acquisitions