Delta Airlines passenger jets are pictured outside the newly completed 1.3 million-square foot $4 billion Delta Airlines Terminal C at LaGuardia Airport in the Queens borough of New York City, New York, U.S., June 1, 2022.
REUTERS/Mike SegarAug 9 (Reuters) - Wheels Up Experience (UP.N) said on Wednesday there was "substantial doubt" about its ability to continue operations, even as it disclosed short-term funding from Delta Air Lines (DAL.N), sending its shares plunging 42%.
North American business flights were down 3.6% compared with July 2022, according to data from Argus International.
Delta said in a statement that it was providing a short-term capital infusion in the form of a secured promissory note to Wheels Up, which is pursuing strategic partnerships.
Wheels Up, which canceled an earnings call scheduled for Wednesday, said U.S. private jet operator Airshare had entered into a non-binding agreement with the company to acquire its non-core aircraft management business.
Persons:
Mike Segar, Delta, Ed Bastian, Airshare, Shivansh, Allison Lampert, Rajesh Kumar Singh, Vinay Dwivedi, Mark Potter
Organizations:
Delta Airlines, LaGuardia Airport, REUTERS, Delta Air Lines, Argus International, Delta, Airshare, Thomson
Locations:
Queens, New York City , New York, U.S, American, Bengaluru, Montreal