Shares of Wheels Up Experience (UP) jumped over 6% after Delta Air Lines (DAL) and two investment firms 🧔bailed out the money-losing private charter jet provider and took control of the firm.  

Delta said it, along with Certares Management and Knighthead Capital Management, entered into a non-binding agreement with Wheels Up giving the company a $400 million term loan and a $100 million liquidity facility. The move expands the support the three had previously supplied to Wheels Up.

Delta noted that as part of the transaction, the lenders will receive 95% ofꦦ Wheels Up stock, and Delta CFO Dan Janki will become chair. 

Delta CEO Ed Bastian indicated that the partnership will “create new opportဣunities for Wheels Up to drive strategic, operational and financial improvements for its customers in the months and years ahead.”

Wheels ⛄Up shares had plunged to an all-time low last week after the company warned there was “substantial doubt” it could continue operating. Wheels⛦ Up struggled financially as the boom in demand by wealthy clients for private jets during the pandemic has declined. 

Despite Tuesday's gains, Wheels Up Experience shares are deep in the red for 2023. Shares of Delta Air Lines fell 2.8%.