Company: UP
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0001819516-25-000012
Chunk: 126

Company: Wheels Up Experience Inc.
Filing Date: 2025-03-11
Form: 10-K
Item: Item 7
Chunk 126
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 million decrease in sales commissions, primarily driven by the decrease in year-over-year Membership revenue and revenues from whole aircraft sales, and a $1.1 million decrease in equity-based compensation expense associated with historical awards which vested prior to or within the current period. The decreases were partially offset by a $1.9 million increase in advertising spend and a $0.7 million increase in sales consulting spend.

General and Administrative

General and administrative expenses decreased $8.3 million, or 6%, for the year ended December 31, 2024 compared to the year ended December 31, 2023, primarily driven by a $21.7 million reduction in consulting and legal expenses associated with strategic planning and integration activities, a $17.5 million reduction in employee compensation, bonus and allocable costs due to headcount reduction actions taken in fiscal year 2023, including the absence of a $5.4 million one-time charge associated with the Restructuring Plan recognized during the first quarter of 2023. The decreases were partially offset by a $24.4 million increase in equity-based compensation expense primarily attributable to the Executive Performance Awards (as defined in Note 11) and $3.7 million in charges associated with implementing our fleet modernization strategy. 

Depreciation and Amortization

Depreciation and amortization expenses decreased $2.0 million, or 3%, for the year ended December 31, 2024 compared to the year ended December 31, 2023, primarily as a result of the reduction in aircraft in our controlled fleet as we execute our fleet modernization strategy.

Interest Income

Interest income decreased $4.0 million for the year ended December 31, 2024 compared to the year ended December 31, 2023.  The decrease was attributable to holding lower levels of cash equivalents in money market funds during the period.

Interest Expense

Interest expense increased $24.1 million for the year ended December 31, 2024 compared to the year ended December 31, 2023. The increase was primarily attributable to paid-in-kind interest expense associated with the Term Loan (as defined below) entered into during the second half of 2023.

Income Tax Expense

Income tax expense decreased $0.2 million for the year ended December 31, 2024 compared to the year ended December 31, 2023. 

Net Loss

As a result of the factors described above, Net loss improved by $147.8 million for the