Street Calls of the Week
ATLANTA - Wheels Up Experience Inc. (NYSE:UP) announced Monday that its major investors have agreed to extend the lock-up restriction on their shares for an additional eight months, until May 22, 2026. The announcement comes as the company’s stock has shown remarkable momentum, with InvestingPro data showing a 138% surge over the past six months and a 14.7% gain in the past week.
The agreement involves Delta Air Lines, CK Wheels LLC (co-managed by Certares Opportunities, LLC and Knighthead Opportunities Capital Management, LLC), and Cox Investment Holdings, LLC. These strategic investors collectively hold approximately 85% of the company’s total outstanding shares in the $1.79 billion market cap company.
"We are pleased that our lead investors have decided to extend their agreements to retain all their shares, demonstrating confidence in our strategy and progress," said Wheels Up Chief Executive Officer George Mattson in a press release statement.
The lock-up extension prevents these investors from selling their shares during the specified period, potentially providing stability to the company’s stock price as it continues its business transformation efforts.
Wheels Up operates as a provider of on-demand private aviation services in the United States, offering charter and membership programs through its fleet and network of charter operators. The company also maintains a strategic partnership with Delta Air Lines that provides commercial travel benefits to its customers.
The company’s business model includes private aviation services for individuals as well as cargo services for various clients, including government organizations. Customers can access these services through the company’s app and website.
This announcement comes as Wheels Up continues to implement its business strategy focused on scaling its premium jet fleet, enhancing membership offerings, and improving operational efficiency. According to InvestingPro analysis, while the company currently operates with moderate debt levels, analysts expect improved performance with positive net income growth forecasted for this year. For deeper insights into Wheels Up’s financial health and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, available for over 1,400 US stocks.
In other recent news, Wheels Up Experience Inc. has announced the launch of its new Signature Membership program. This program offers guaranteed nationwide access to its fleet of Phenom 300 and Challenger 300 series aircraft. The membership requires a monthly fee and a minimum $200,000 pre-paid deposit, providing members with guaranteed availability and recovery services year-round across the United States, including a 225-mile radius beyond the coastline. Additionally, Wheels Up has divested three non-core businesses for approximately $20 million before transaction expenses. The sale of Baines Simmons, Kenyon International Emergency Services, and Redline Assured Security is part of the company’s ongoing strategy to streamline operations and improve profitability. These recent developments highlight Wheels Up’s efforts to enhance its core services and financial performance.
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