Money-losing private jet charter company Wheels Up Experience said on Tuesday it would give up 95% of its common stock in return for a $500 million lifeline from Delta Air Lines and two investment firms.

The company said on Monday it was considering its options, including filing for bankruptcy protection. Wheels Up also reported a second-quarter net loss that had widened from a year earlier.

As part of a non-binding agreement, the funding would comprise a $400 million term loan from partners Delta and investment firms Certares Management and Knighthead Capital Management. The U.S. carrier would provide a $100 million liquidity facility.

"The partnership will create new opportunities for Wheels Up to drive strategic, operational and financial improvements for its customers," Delta chief executive Ed Bastian said in a statement.

Wheels Up, which charters planes by the hour, has taken a slew of restructuring measures this year, including job cuts and management changes, as demand for private jets from wealthy travelers slowed after the pandemic.

Trading in Wheels Up shares were halted in midday trade.

(Reporting By Allison Lampert in Montreal, additional reporting by Abhijith Ganapavaram in Bengaluru; Editing by Arun Koyyur and Conor Humphries)