Wheels Up Lays Off Approximately 11% Of Its Flight Crew Staff

On Tuesday, June 25, it was revealed that Wheels Up had laid off approximately 11% of its pilots. According to AIN Online, the company cited a staffing imbalance as the reason for the layoffs. Wheels Up also stated that the company was seeing a sharp decline in pilot attrition rates through the first half of the year. This is most likely due to hiring slowing down at airlines and other charter services.

Reduction of workforce

Most of the layoffs were attributed to crew members that flew in the company’s King Air fleet, according to AIN Online, as the company reduced its pilot headcount from 950 to 850. In a statement to Private Jet Card Comparisons, a Wheels Up spokesperson stated,

“Aligning our pilot organization with the size of our fleet is critical to the success and health of our business, and the abnormalities in the industry over these last few months made appropriate staffing forecasting against regular attrition challenging. As we navigate through this difficult period of change, we want to once again acknowledge the pivotal roles that all of our team members play in ensuring our operation reflects the high standards we have set for ourselves, our members, and our customers. It is their focus, dedication, and passion that will continue to advance our path to operational excellence.”

Continued recent struggles

This is the first time that Wheels Up has had to lay off pilots in its history. However, the company initiated a restructuring program in March last year, which ended with the reduction of non-operational staff. Pilots and flight crew were exempt from the restructuring.

Photo: Wheels Up 

Struggles last year resulted in a $500 million payment from Delta Air Lines, which has been a major stakeholder in the company since 2019. Delta Air Lines now owns 95% of Wheels Up and the airline implemented a new management team at Wheels Up.

Related

Wheels Up Records First Quarter Loss

The charter company also saw a decrease in total revenue year-over-year.

However, Wheels Up is still unprofitable. The company has not been profitable since it was founded in 2013. Last year, it recorded an operating loss of nearly $500 million. The financial struggles have continued into this year, as Wheels Up reported a net loss of $97 million in the first quarter of 2024. This was a slight improvement year-over-year, however, as the company made drastic changes to its structure. This includes the sale of its aircraft management and aircraft sales business, as well as the reduction of its active fleet.

Photo: Wheels Up

Although the company is still operating at a loss, the Chief Executive Officer of Delta Air Lines, Ed Bastian, has maintained confidence in the company. Bastian believes that integrating the private charter company into the airline business that Delta provides will provide a unique experience for premium travelers. These travelers now have the option to fly privately or fly through Delta, as the Wheels Up users now have access to the Delta SkyMiles frequent flyer program. Bastian believes this integration will allow for the seamless transition between flying on Delta Air Lines or flying privately through Wheels Up, depending on the customer’s intended destination.