Wheels Up, a private aviation operator, received a notice from the New York Stock Exchange (NYSE) on December 17 regarding non-compliance with its minimum share price requirement. The NYSE has granted the company a six-month period to rectify this issue. This follows a previous notice in April, which Wheels Up addressed in June through a reverse stock split. The latest notice does not trigger immediate trading restrictions but underscores ongoing regulatory challenges for the company.
On December 22, Wheels Up announced a sale-leaseback agreement involving ten aircraft, including three Challenger 300s and seven Phenom 300s. Valued at about USD105 million, the transaction aims to raise funds for debt repayment and bolster cash reserves. These proceeds are part of a strategic plan to support future fleet acquisitions, including additional Challenger 300 and Phenom 300 airplanes scheduled for 2026, as part of its broader fleet modernization initiative.
Despite these financial maneuvers, Wheels Up has yet to secure shareholder approval for another reverse stock split, a move it may undertake if compliance issues persist. The company's focus remains on fleet expansion and financial health, navigating regulatory hurdles while investing in aircraft upgrades as part of its long-term growth plan.
