Wheels Up doubles down with another reverse stock split

With its stock price sitting below the one-dollar threshold for nearly three months, Wheels Up announced on Tuesday that the company is doing another reverse split. The stock plunged 26% on the news as of noon on Tuesday, hitting an intra-day low of $0.36. That was down from a high of $3.30 in late August of last year and nearly 99.6% below its 2021 SPAC-based IPO, as Wheels Up became the first publicly traded business aviation company. Stocks that sit below $1 for an extended time could be delisted by the New York Stock Exchange. A 1-for-20 reverse split mechanically multiplies the share price by 20, clearing the threshold without the company actually improving its underlying value. Wheels Up stated in its announcement that leadership believes the move will align it more closely with peer companies with similar market capitalizations. Delta's 2023 bailout of Wheels Up flooded the market with 670 million shares. The reverse split aims to clean up some of the mess. "We're executing our strategy—driven by operational excellence, a new premium fleet, our strategic partnership with Delta Air Lines, and improved financial performance—and the progress we've made over the past two years is real," said CEO George Mattson. "We've restructured the business, sharpened our focus on premium customers, and grown key segments. ... As we near completion of our fleet transformation more than a year ahead of schedule, we believe we are positioned for growth and to deliver on our commitments to members, partners, employees and investors." PREVIOUS STORIES:Wheels Up launches new Signature Membership program Wheels Up sells non-core services businesses to streamline operations Wheels Up regains compliance with NYSE (2025) Wheels Up retiring Citation fleet, moving to Challengers, Phenoms outfitted with Gogo Kenny Dichter begins third-act play at NBAA-BACE with Real JetIn August, Wheels Up sold three of its non-core training and management businesses - Baines Simmons, Kenyon International Emergency Services and Redline Assured Security - for $20 million. At the time, Mattson said the sale, in addition to $50 million in operations streamlining, was "expected to create meaningful tailwinds on our path to sustained, profitable growth." This is not the first time for Wheels Up to be this down in Wall Street circles. Last June, the private jet membership program provider regained compliance with the NYSE. In 2023, founder Kenny Dichter was ousted as CEO, and the company took a $500 million lifeline from Delta, buoyed by additional financial support, which saw the airline take over the vast majority of the company's shares. Trying to maintain the $1.00 stock price to stay on the NYSE, Wheels Up announced a 1-for-10 reverse stock split in June of that year. One year later, a Wheels Up blitz at NBAA-BACE was a hopeful comeback tour. The company announced it was upgrading its fleet by retiring its Citation jets and moving to Bombardier Challengers and Embraer Phenoms with premium options, including Gogo Galileo HDX Wi-Fi. At the same time, the company also announced a $332 million financing option funded by Bank of America. "As we continue making progress toward sustainable profitability and a strong balance sheet," Mattson said then, "our focus remains on delivering best-in-class experiences on every flight for our customers." For now, the experience of many Wheels Up shareholders feels more like fight or flight. The silver lining amongst the turbulence? It's not quite the end of the NYSE runway - yet. The stock is expected to begin trading under the 20:1 reverse split when the market opens on April 27. The last time that happened, the stock made a double-digit percentage recovery.