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ATLANTA - Wheels Up Experience Inc. (NYSE:UP), a private aviation provider with a market capitalization of $1.38 billion, has sold three non-core services businesses for approximately $20 million before transaction expenses, the company announced Wednesday. The stock has shown strong momentum, gaining over 29% in the past week.
The company divested Baines Simmons, Kenyon International Emergency Services, and Redline Assured Security to an unrelated third party as part of its ongoing strategy to streamline operations and improve profitability. According to InvestingPro data, the company has been facing challenges with a gross profit margin of just 12% and significant cash burn, making this divestiture particularly crucial.
Wheels Up plans to reinvest the proceeds from the sale to advance its fleet modernization efforts and for general corporate purposes, according to the company’s statement.
"The divestiture of these non-core services businesses is the latest in a series of steps that Wheels Up has taken to sharpen our strategic focus," said George Mattson, Chief Executive Officer of Wheels Up.
The sale complements the company’s recently announced initiatives aimed at achieving approximately $50 million in cost efficiencies. These measures are part of Wheels Up’s broader efforts to streamline its business operations, improve performance, and execute its fleet simplification strategy.
Wheels Up provides on-demand private aviation services in the United States with a fleet that includes aircraft operated through a network of safety-vetted charter operators. The company offers charter and membership programs along with commercial travel benefits through its partnership with Delta Air Lines.
The information in this article is based on a press release statement from Wheels Up. For a comprehensive analysis of Wheels Up’s financial health, growth prospects, and detailed valuation metrics, access the full Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert insights and actionable intelligence.
In other recent news, Wheels Up Experience Inc. reported several significant developments. The company announced executive leadership changes to better align its business strategy with customer needs. Mark Briffa has been appointed Chief Sales Officer, while Meaghan Wells will serve as Chief Growth Officer, both playing crucial roles in strengthening the company’s sales and growth strategies. Additionally, Wheels Up has expanded its long-term incentive plans following approval at its 2025 Annual Meeting of Stockholders. The Amendment No. 2 to the Amended and Restated 2021 Long-Term Incentive Plan doubles the number of shares available for awards and extends the plan’s termination date to 2035. This move aims to enhance the company’s ability to attract and retain talent through equity-based compensation. Furthermore, Wheels Up has regained compliance with the New York Stock Exchange’s minimum share price requirement. This compliance signals increased investor confidence, as noted by CEO George Mattson, who attributes the improvement to strategic business transformations. The company’s market capitalization now stands at approximately $1 billion.
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