June 17, 2025
Speaking on CNBC this morning Delta Air Lines CEO Ed Bastian said Wheels Up continues as an important part of the airline’s premium offering.
Speaking on CNBC’s Squawk Box this morning, Delta Air Lines CEO Ed Bastian said he is seeing “meaningful improvements” at Wheels Up.
Bastian was on the cable business channel to discuss the airlines’ Q2 2025 earnings, released this morning.
Delta Air Lines reported record revenue of $15.5 billion for Q2 2025.
That marked a 1% increase year-over-year.
Non-GAAP operating income of $2 billion with an operating margin of 13.2%
Pre-tax income of $1.8 billion with a $1.8 billion operating cash flow.
Delta also reinstated its full-year outlook, which it had suspended earlier this year due to uncertainties surrounding tariffs.
Near the end of the segment with CNBC’s Phil LeBeau, the network’s wealth reporter, Robert Frank, joined.
He asked Bastian, with continued losses at Wheels Up, why Delta Air Lines shareholders should remain supportive.
Bastian told listeners, “It was in pretty dire shape when we and (Certares Management LLC, Knighthead Capital Management LLC, and Cox Enterprises) stepped in.”
He added, “We said at the time it was going to take a couple years to get it turned around, stabilized.”
Bastian said, “We’re doing that…We are seeing meaningful improvements.”
The Delta CEO said Wheels Up has been successful in increasing business travelers via the airline’s corporate sales force.
Currently, around 20 Delta executives have been seconded to Wheels Up, Bastian said.
Its CEO since September 2023 is former longtime Delta board member George Mattson.
Executives previously stated that the leisure travel focus of Wheels Up customers, which accounts for nearly 90%, caused inefficient utilization of its fleet, one of the largest in the industry.
It didn’t have enough airplanes and pilots for peak leisure travel periods, meaning it had to rely on other operators and charter aircraft, sometimes at a cost higher than the guaranteed rates members were paying.
During the middle of the week, pilots and airplanes sat on the ground.
Bastian doubled down on his proposition that Wheels Up solidifies Delta’s position in the premium travel segment.
He said, “There are two economies…Wheels Up is the ultimate premium for air travel, and that’s what we’re building.”
Bastian stated that, despite economic and political issues, premium travel to and from Europe remained strong for the airline.
READ: Q&A with Delta CEO Ed Bastian, Wheels Up CEO George Mattson
Wheels Up has yet to report Q2 financials.
In Q1, it reported a $99.3 million net loss, in line with 2024 results.
However, it reduced the Adjusted EBITDA loss by 51% despite a 10% decline in revenue.
Total Gross Bookings, which include the full charter amount from its Air Partner subsidiary, were up 8% to $241.9 million in the quarter.
Mattson said at the time, “Our results this quarter show the progress we are making in our business transformation, and we are pleased to see continued commercial momentum in light of more uncertain economic conditions.”
He added, “We remain focused on improving profitability and expanding margins by modernizing our fleet, leveraging our first-of-its-kind partnership with Delta, and delivering premium solutions for every customer journey.”
Wheels Up is also in the midst of a fleet modernization plan, designed to make it more appealing to the blue-chip corporate accounts Delta serves.
The fleet makeover follows the establishment of its $332 million revolving credit facility with Bank of America in October.
According to the latest FAA data, Wheels Up operates 18 Phenom 300s and 4 Challenger 300s in its fleet, which are available for charter flights.
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