Wheels Up Experience Inc. (NYSE: UP) recently received a notice from the New York Stock Exchange (NYSE) indicating that the average closing price per share of its common stock did not exceed $1.00 over a 30 consecutive trading-day period, which is required for continued listing on the NYSE. As of December 31, 2024, 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.
The company has six months from the receipt of the notice to regain compliance with the minimum share price requirement. In response to this, Wheels Up intends to seek approval at its upcoming annual meeting of stockholders on June 10, 2025, to authorize a reverse stock split of the company’s common stock and, unless it has already otherwise regained compliance, effect such reverse stock split.
Wheels Up is focused on improving profitability and expanding margins by modernizing its fleet, leveraging its partnership with Delta Air Lines, and delivering premium solutions for every customer journey. 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.
In addition to the reverse stock split, Wheels Up may consider various other available options to regain compliance with the minimum share price requirement. Despite the NYSE's notification, it has no immediate effect on the listing of Wheels Up’s common stock on the NYSE, and the company remains committed to executing its strategic plan and serving its members and customers. As a result of these announcements, the company's shares have moved -0.6% on the market, and are now trading at a price of $0.84. For more information, read the company's full 8-K submission here.
