Wheels Up Experience Inc. Files 2023 Annual Report (10-K)

TL;DR

<b>Wheels Up Experience Inc. has filed its 2023 10-K report detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

Wheels Up Experience Inc. (WSUPW) filed a Annual Report (10-K) with the SEC on March 7, 2024. Wheels Up Experience Inc. filed its 10-K for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal business is Air Transportation, Nonscheduled. The filing was made on March 7, 2024. The company's former name was Aspirational Consumer Lifestyle Corp., with a name change on July 29, 2020.

Why It Matters

For investors and stakeholders tracking Wheels Up Experience Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Wheels Up's financial health, operational activities, and strategic direction for the past fiscal year, crucial for investors and stakeholders to assess the company's performance and future prospects. The detailed financial statements and risk factors within the report offer insights into the company's market position, challenges, and potential growth opportunities in the air transportation sector.

Risk Assessment

Risk Level: — Wheels Up Experience Inc. shows moderate risk based on this filing. The company's financial performance and operational risks are significant, as indicated by the need for a comprehensive 10-K filing which typically addresses potential challenges and uncertainties in the business environment.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K to understand Wheels Up's current financial health and operational challenges.

Key Players & Entities

• Wheels Up Experience Inc. (company) — Filer
• Aspirational Consumer Lifestyle Corp. (company) — Former company name
• March 7, 2024 (date) — Filing date
• December 31, 2023 (date) — Fiscal year end

FAQ

Industry Context

Wheels Up operates in the air transportation sector, specifically focusing on nonscheduled air services.

Regulatory Implications

The filing is a standard 10-K report, mandated by the Securities Exchange Act of 1934 for public companies.

What Investors Should Do

1. Analyze the revenue and net income figures for fiscal year 2023.
2. Assess the company's debt-to-equity ratio and cash position.
3. Review the identified risk factors for potential operational and financial challenges.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-07: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This filing is the 10-K for the fiscal year ending December 31, 2023, providing updated financial and operational information compared to previous filings.

Key Financial Figures

• $0.0001 — which registered Class A common stock, $0.0001 par value per share UP New York Stock E

Filing Documents

• up-20231231.htm (10-K) — 2510KB
• ex-32xupxamendedandrestate.htm (EX-3.2) — 250KB
• ex-413xdescriptionofoursec.htm (EX-4.13) — 185KB
• ex-1029xcfoperformanceawar.htm (EX-10.29) — 81KB
• ex-211xwheelsuplistofsubsi.htm (EX-21.1) — 24KB
• ex-231xconsentofindependen.htm (EX-23.1) — 2KB
• ex-311certificationofthece.htm (EX-31.1) — 12KB
• ex-312certificationofthecf.htm (EX-31.2) — 12KB
• ex-321certificationofthece.htm (EX-32.1) — 6KB
• ex-322certificationofthecf.htm (EX-32.2) — 6KB
• ex-971xupxexecutivecompens.htm (EX-97.1) — 45KB
• ex-991xscheduleilistofinde.htm (EX-99.1) — 244KB
• 0001819516-24-000015.txt (&nbsp;) — 14541KB
• up-20231231.xsd (EX-101.SCH) — 105KB
• up-20231231_cal.xml (EX-101.CAL) — 127KB
• up-20231231_def.xml (EX-101.DEF) — 592KB
• up-20231231_lab.xml (EX-101.LAB) — 1072KB
• up-20231231_pre.xml (EX-101.PRE) — 887KB
• up-20231231_htm.xml (XML) — 1949KB

Business

Business 5 Item 1A.

Risk Factors

Risk Factors 18 Item 1B. Unresolved Staff Comments 44 Item 1C. Cybersecurity 44 Item 2.

Properties

Properties 45 Item 3.

Legal Proceedings

Legal Proceedings 47 Item 4. Mine Safety Disclosures 47 PART II. Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 47 Item 6. [ Reserved ] 48 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 48 Item 7A

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 73 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 74 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosures 133 Item 9A.

Controls and Procedures

Controls and Procedures 133 Item 9B. Other Information 135 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 137 PART III. Item 10. Directors, Executive Officers and Corporate Governance 138 Item 11.

Executive Compensation

Executive Compensation 138 Item 12.

Security Ownership of Certain Beneficial Owner and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owner and Management and Related Stockholder Matters 139 Item 13. Certain Relationships and Related Transactions, and Director Independence 139 Item 14. Principal Accounting Fees and Services 140 PART IV. Item 15. Exhibits, Financial Statement Schedules 140 Item 16. Form 10-K Summary 146

Signatures

Signatures 147 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K ("Annual Report") of Wheels Up Experience Inc. (referred to herein as "Wheels Up", the "Company", "we", "us", or "our") contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside of the control of Wheels Up, that could cause actual results to differ materially from the results discussed in the forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding: (i) the impact of Wheels Up's cost reduction efforts and measures intended to increase Wheels Up's operational efficiency on its business and results of operations, including the timing and magnitude of such expected actions and any associated expenses in relation to liquidity levels and working capital needs; (ii) Wheels Up's liquidity, future cash flows and certain restrictions related to its debt obligations; (iii) the size, demands, competition in and growth potential of the markets for Wheels Up's products and services and Wheels Up's ability to serve and compete in those markets; (iv) the degree of market acceptance and adoption of Wheels Up's products and services, including member program changes implemented in June 2023, the UP for Business member program introduced in November 2023 and any additional new member programs or other products introduced by Wheels Up; (v) Wheels Up's ability to perform under its contractual obligations; (vi) the expected impact of any potential strategic actions in

BUSINESS

Item 1. BUSINESS General Wheels Up is a leading provider of on-demand private aviation in the United States ("U.S.") and one of the largest companies in the industry. Wheels Up offers a complete global private aviation solution with a large and diverse aircraft fleet, backed by an uncompromising commitment to safety and service. We connect private flyers to aircraft, and to one another, through an open platform that enables life's most important experiences. Our offering is delivered through a mix of programmatic and charter options that strategically utilize our owned and leased aircraft fleet and an "asset-light" charter model to deliver a greater range of global travel alternatives. In addition, our unique partnership with Delta provides our members and customers with a seamless offering across both private and premium commercial travel. Our Products and Services While we offer numerous products and services to our customers and industry partners, we generate the majority of our revenue from flight activity through our member programs and charter solutions. We have historically provided the majority of our private aviation services through our membership program, which allows members to select the membership level best tailored for their flying needs and receive additional benefits from the purchase of dollar-denominated credits that can be applied to future costs, including flight services, annual dues and other incidental costs such as catering and ground transportation ("Prepaid Blocks"). We fulfill the majority of member flights using our fleet of owned and leased aircraft to fly to locations in North America. See Part I, Item 2 "Properties" of this Annual Report for more information about our aircraft fleet. Our charter solutions customize the member and customer experience for short- or long-haul flights with bespoke private jet arrangements or group charters, including for commercial-size charters with large passenger groups of 15 or more, sports team

View Full Filing

View this 10-K filing on SEC EDGAR