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Private jet firm Wheels Up considers options, including bankruptcy protection

Published 08/14/2023, 05:28 PM
Updated 08/14/2023, 06:01 PM
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(Reuters) -Private jet charter company Wheels Up Experience 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 (NYSE:DAL).

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.

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