Wheels Up Advances Fleet Modernization with Strategic Sale-Leaseback and Connectivity Upgrades

Wheels Up Experience Inc. (NYSE: UP), a premier provider of on-demand private aviation, has announced significant milestones aimed at enhancing its fleet and customer experience. The company has entered into a sale-leaseback transaction involving a part of its Phenom and Challenger fleets, alongside the introduction of its first Phenom aircraft featuring Gogo Galileo HDX satellite Wi-Fi. These developments are part of Wheels Up's ongoing fleet modernization plan, which aims to support growth and improve service levels through 2026.

Details of the Sale-Leaseback Agreement

In a strategic move, Wheels Up has agreed to sell 10 aircraft—comprising 3 Challenger 300s and 7 Phenom 300s—and will enter into long-term operating leases for these planes. This sale-leaseback is valued at approximately $105 million. Proceeds from the transaction are expected to:

• Repay around $65 million of outstanding debt under the company's revolving equipment notes facility.
• Provide approximately $40 million in cash net proceeds to strengthen the company’s balance sheet.

The funds and additional borrowing capacity gained will facilitate further acquisitions of Challenger and Phenom aircraft in 2026, reflecting Wheels Up's commitment to an asset-right operating model.

Fleet Modernization Strategy and Growth Plans

Wheels Up’s fleet modernization strategy remains focused on scaling its Bombardier Challenger 300 series and Embraer Phenom 300 series aircraft. The strong demand for new fleet offerings—bolstered by the recent launch of the Signature membership program—has led to the acquisition of or agreements to acquire 10 more aircraft and further expansion plans for the coming year. The company emphasizes maintaining member access during busy periods, particularly the holiday season.

Introduction of Next-Generation Connectivity

Wheels Up has also made strides in in-flight connectivity with the initial deployment of the Phenom 300 equipped with Gogo Galileo HDX satellite Wi-Fi. This state-of-the-art system offers:

• Enhanced performance through high bandwidth and low latency.
• Global coverage that supports live streaming and voice telephony.

The introduction of Gogo Galileo HDX is expected to enhance the overall flying experience for both corporate and leisure travelers. "Both corporate and leisure private aviation travelers expect high speed, seamless connectivity wherever they fly,” noted George Mattson, CEO of Wheels Up.

Quote from Leadership

Reflecting on these strategic initiatives, Mattson stated, “The actions we are announcing today reflect disciplined, intentional execution of our transformation strategy. The sale-leaseback agreement validates our strategy through a partnership with a sophisticated financial institution and supports our sustainable growth initiatives." This approach positions Wheels Up favorably to execute its fleet strategies into 2026.

About Wheels Up

Wheels Up is recognized as a leader in on-demand private aviation in the U.S., boasting a large and diverse fleet along with a global network of safety-vetted charter operators all dedicated to quality service. The company offers a range of charter and membership programs and collaborates with Delta Air Lines to provide commercial travel benefits. More information can be found at www.wheelsup.com.

Cautionary Note Regarding Forward-Looking Statements

This announcement contains forward-looking statements that involve risks and uncertainties, which could cause actual results to differ. Statements regarding the acquisition of aircraft, implementation timelines, and the expected financial impacts are inherently uncertain. The company does not intend to update these forward-looking statements unless required by law.