Wheels Up stock plunged 21 percent on Tuesday, closing at 39 cents, after the company announced a $101 million quarterly loss, plans to consolidate into two primary operating regions, and that founder and CEO Kenny Dichter had stepped down.
Wheels Up announced that interim CEO Todd Smith will lead the company through a regional rebalancing effort that could very well shrink the size of the largest on-demand business aircraft charter operation in the U.S. Smith, previously CFO of the company, assumed the leadership position this week from Dichter, who will remain on the company’s board. On Tuesday, Smith told stock analysts that the new strategy will concentrate King Air service east of the Mississippi River and light and medium jet service in the American Rockies and Southwest. It will be “focused in the areas we want to win,” he said, and comprise roughly 80 percent of the company’s current business.
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