Charter & Fractional
Analyst: Delta Must Fix Wheels Up Investment, and Fast
Profit erosion at Delta amplifies steep losses at majority share-owned air charter outfit Wheels Up
Wheels Up King Air in Las Vegas
© Barry Ambrose/AIN

“Delta Air Lines must fix its unprofitable Wheels Up investment—quickly,” according to business aviation analyst Brian Foley of Brian Foley Associates. He noted that the urgency is now greater since the airline reported a 29% year-over-year (YOY) profit decline in the second quarter while Wheels Up, which will report its second-quarter results next Thursday, continues to bleed red ink.

“Wheels Up, purchased by Delta and a consortium of investors a year ago, had a $97 million loss in the first quarter, about on par with its loss during the same period in 2023,” Foley said. “Wheels Up never made money even before Delta’s rescue, and since its founding has racked up a $1.86 billion accumulated deficit.”