Wheels Up (UP) Soars on Sale of 3 Units

We recently published 10 Stocks Beating Wall Street at its Own Game. Wheels Up Experience Inc. (NYSE:UP) is one of the top performers of Tuesday.

Wheels Up rallied for an 8th straight day on Tuesday, soaring by as much as 32 percent before closing lower at $3 apiece as investors cheered the company’s $50 million cost savings expectations from the divestment of three of its non-core businesses.

Last week, Wheels Up Experience Inc. (NYSE:UP) announced that it raised $20 million in fresh funds from the sale of Baines Simmons, Kenyon International Emergency Services, and Redline Assured Security to TrustFlight, one of the leading aviation safety and compliance solutions providers.

“The divestiture of these non-core services businesses is the latest in a series of steps that Wheels Up has taken to sharpen our strategic focus; invest in our product, fleet and operations; and strengthen our balance sheet,” said Wheels Up Experience Inc. (NYSE:UP) CEO George Mattson.

“The sale, along with our recently announced initiatives estimated to drive approximately $50 million of cost efficiencies, is expected to create meaningful tailwinds on our path to sustained, profitable growth,” he added.

In the second quarter of the year, Wheels Up Experience Inc. (NYSE:UP) narrowed its net loss by 15 percent to $82.3 million from $96.97 million in the same period last year. Revenues, on the other hand, dropped 3 percent to $189.6 million from $196 million year-on-year.

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