Private aviation supplier Wheels Up has received a notice from the New York Stock Exchange (NYSE) last week, stating that its share price fell below the required $1 to continue listing on the exchange.
As of today (December 22), the company's stock traded as low as $0.58 per share at market open.
The notice has no immediate effect on the company's listing of common stock on the NYSE. The company has six months from the notice to regain the minimum share price.
Wheels Up said it “may consider various available options to regain compliance”. This includes a potential reverse stock split, which was previously authorised by shareholders.
This would reduce its total shares to fewer but create higher-priced shares, boosting its stock price. However, the company's board has not yet approved this move.
“Receipt of the NYSE notice does not affect Wheels Up's plans to execute its strategic initiatives, its objectives to build a resilient business model to support sustainable future profitability, or its ability to serve its members and customers,” the company said in a statement.
The company said it “remains committed” to its multi-year transformation. This includes advancing its fleet transition to Bombardier Challenger 300 series and Embraer Phenom 300 Series jets.
Additionally, the company said it will continue with its previously disclosed $70 million annual cost savings initiatives through efficiency, productivity, and overhead cost reduction actions. These cost saving initiatives are expected to take effect mid-2026.
Wheels Up said it will also leverage its partnership with Delta Air Lines to “deliver premium solutions for every customer journey”.
The company announced last week that it will enable its members to self-book Delta Air Lines flights through its own web portal.
Delta and two other investors provided Wheels Up with a $500 million lifeline in 2023.
Wheels Up provides “on-demand” and membership-based access to a network of private jets and aircraft.