Aug 16 (Reuters) – Loss-making private jet firm Wheels Up Experience (UP.N) nabbed a key $500 million 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 U.S. carrier Delta Air Lines (DAL.N). 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.
Wheels Up flies for now, but private-jet rivals see opportunity
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