Company: UP
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0001819516-25-000012
Chunk: 133

Company: Wheels Up Experience Inc.
Filing Date: 2025-03-11
Form: 10-K
Item: Item 7
Chunk 133
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 and the balance was primarily attributable to a decrease in net operating assets and liabilities. During the year ended December 31, 2024, we sold $595.4 million of Prepaid Blocks compared to $482.1 million for the year ended December 31, 2023. The 23% year-over-year increase in Prepaid Block sales was attributable to a higher volume of purchases in the first three quarters of 2024 as compared to the prior year. We have historically experienced greater purchases of Prepaid Blocks from our members during the third and fourth quarters of the calendar year. 

Cash Flow from Investing Activities

The cash outflow from investing activities during the year ended December 31, 2024 was primarily attributable to $137.8 million of capital expenditures, including $15.0 million of capitalized software development costs. The outflow was partially offset by $85.6 million in proceeds from sale of aircraft held for sale, net of selling costs and $7.9 million of post-closing cash proceeds associated with divestiture of the non-core aircraft management business.

Cash Flow from Financing Activities

The cash inflow from financing activities was primarily attributable to the net proceeds from the initial issuance of the 2024 Revolving Equipment Notes of $327.2 million, partially offset by the repayments of long-term debt of $246.5 million, which included redemptions of 2022 Term Equipment Notes due to aircraft sales, the redemption in-full of the 2022 Term Equipment Notes in November 2024 and subsequent redemptions of Revolving Equipment Notes due to aircraft sales. We also incurred debt issuance costs of $1.6 million associated with the initial issuance of the Revolving Equipment Notes in November 2024.

Future Obligations and Commitments

As of December 31, 2024, our principal ongoing commitments consisted of contractual cash obligations to pay principal and interest payments under the Revolving Equipment Notes, principal and accrued interest under the Credit Agreement when due at maturity, operating leases for certain controlled aircraft, leased facilities, including our corporate headquarters at the Atlanta Member Operations Center, our corporate office in New York, New York, and other operational facilities, such as hangars and maintenance facilities, trade payables and ordinary course arrangements involving our obligation to provide services for which we have already received deferred revenue. For further information about the foregoing obligations and commitments, see the following disclosures in the Notes to Consolidated Financial Statements included in Part II, Item 8 “Financial Statements and Supplementary Data” in