April 24, 2025
Delta Air Lines-backed Wheels Up says the notice has no immediate impact on its listing. It had $316 million of liquidity at the end of 2024.
Wheels Up Experience Inc. said today it received a notice from the New York Stock Exchange that the average closing price per share of its common stock did not exceed $1.00 over a 30 consecutive trading-day period.
It is a requirement for continued listing on the NYSE.
Per its press release, “Wheels Up remains committed to executing its long-term, foundational improvements to its operations and commercial engine, and its objective to build a resilient business model to support sustainable future profitability.”
The company continued, “Key initiatives supporting this business transformation include modernizing its fleet through the addition of customer-preferred Embraer Phenom 300 series and Bombardier Challenger 300 series jets, leveraging its first-of-its-kind partnership with Delta Air Lines, and delivering premium solutions for every customer journey.”
The Delta Air Lines-backed private jet flight provider added:
‘Wheels Up had approximately $316 million of liquidity (comprised of approximately $216 million of unrestricted cash and cash equivalents and an undrawn $100 million commitment from Delta under its revolving credit facility) as of December 31, 2024. Receipt of the NYSE notice does not affect Wheels Up’s commitment to executing on its strategic plan or its ability to serve its members and customers.’
Wheels Up noted the notification has no immediate effect on the listing of Wheels Up’s common stock on the NYSE.
The company intends to regain compliance.
It will seek approval for a reverse stock split at its annual meeting.
Delta Air Lines and its investing partners control 95% of the stock.
The meeting is scheduled for June 10, 2025.
The release states, “Wheels Up may also consider various other options to regain compliance with the minimum share price requirement.”
Wheels Up previously regained compliance in 2023 with a similar reverse stock split.
The company will report its Q1 2025 earnings on May 1, 2025.
UP stock peaked at $4.59 in the past 12 months.
Wheels Up’s stock price ended today’s trading session at $0.84.
Its current market cap is $587 million.
Airline stocks are down 31.5% year-to-date, according to Yahoo Finance.
Delta Air Lines stock ended the day at $41.59 compared to its 12-month high of $69.98.
According to various reports, airline stocks are being hit by economic concerns and concerns about the impact of tariffs on expenses and international travel.
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