Private jet firm Wheels Up considers options, including bankruptcy protection (updated)

Wheels Up Experience

14/08/2023 22:57

(Adds share movement in paragraph 1 and details on net loss in
paragraph 2)
       Aug 14 (Reuters) - Private jet charter company Wheels Up
Experience  UP.N  said on Monday it was considering strategic
alternatives, including filing for bankruptcy protection,
sending its shares down over 8% in extended trading.
    The company also reported a second-quarter net loss of
$160.6 million, widening from $92.76 million a year earlier,
hurt by weaker demand for private jet travel, which had soared
during the pandemic as the wealthy preferred to fly solo. 
    Last week, the company said there was "substantial doubt"
about its ability to continue operations, even as it announced a
short-term funding from Delta Air Lines  DAL.N . 
    The amount, at up to $15 million in the form of a secured
promissory note, was disclosed on Monday. 
    Wheels Up has taken a slew of restructuring measures this
year, including job cuts and management changes. 
    In an SEC filing on Monday, the company reported a working
capital deficit of $720.8 million, adding that it has seen
recurring losses in the first half of the year. 
    
    
   

 (Reporting by Ananta Agarwal and Nathan Gomes in Bengaluru;
Editing by Shounak Dasgupta)
 ((ananta.agarwal@thomsonreuters.com))