Delta Air Lines-backed Wheels Up said it had raised its cost-savings target from $50 million to $70 million last year before today’s layoffs.
Delta Air Lines-backed Wheels Up laid off a significant number of sales executives earlier today, according to sources.
The moves could be part of its previously announced cost savings plan.
Various estimates indicate that over 20 positions were affected, although specific numbers could not be attained.
Last October, the company said it was seeking $70 million in cost reductions.
That was up from an initial target of $50 million.
The savings plan is designed to help propel the company to profitability.
A spokesperson tells Private Jet Card Comparisons, “As a matter of policy, Wheels Up does not comment on personnel matters out of respect for the privacy of those involved.”
In September, the company followed up its $50 million in cost savings announcement with layoffs.
Pilots were part of that round of reductions.
Last year, Wheels Up sold three non-core businesses it acquired as part of its Air Partner acquisition.
That sale netted around $20 million, according to the company.
Following the transaction, CEO George Mattson said, “The sale, along with our recently announced initiatives estimated to drive approximately $50 million of cost efficiencies, is expected to create meaningful tailwinds on our path to sustained, profitable growth.”
Under Mattson, a longtime Delta board member before joining Wheels Up in September 2023, the company has been seeking to remake itself.
Key has been an overhaul of its fleet and a move away from its leisure travel focus built around King Air turboprops, aging Citation Xs, and various light- and midsize-jet types, the result of six different operator acquisitions.
The current game plan is to attract more business flyers via a more premium fleet of Phenom 300s and Challenger 300s.
The goal is to target Delta’s more than 40,000 corporate accounts via its sales team.
Many of those companies have their own flight departments and want premium solutions for supplemental lift that match their aircraft.
Corporate membership jet card sales hit a quarterly record of $62 million, up more than 15% year over year.
In September, it launched its Signature membership, bringing back nationwide fixed hourly rates on the Phenoms and Challengers.
It also reduced callout for top-tier members to 24 hours.
Last month, Wheels Up raised $105 million through a sale-leaseback deal for three Challengers and seven Phenoms.
UP closed on the NYSE at $1.10 today.
It marked the second straight day the stock price closed over one dollar.
In December, it received a non-compliance notice after its stock price closed below the one-dollar mark for 30 consecutive trading days.
If the stock stays at or above one dollar for 10 consecutive days, it will regain compliance.
The current market cap is $793 million.
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