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REVENUE
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
Disaggregation of Revenue
The following table disaggregates Revenue by service type and the timing of when these services are provided to the member or customer (in thousands):
Year Ended December 31,
202520242023
Services transferred at a point in time:
Flights, net of discounts and incentives$622,688 $633,865 $884,065 
Aircraft management— 9,537 159,150 
Other82,391 89,867 102,352 
Services transferred over time:
Memberships28,887 57,614 82,857 
Aircraft management— 170 16,679 
Other2,529 1,051 8,214 
Total$736,495 $792,104 $1,253,317 

Performance Obligations
A performance obligation is a promise in a contract to transfer a distinct service to the customer and is the basis of revenue recognition. To determine the proper revenue recognition method for contracts, we used judgment to evaluate whether two or more contracts should be combined and accounted for as a portfolio and whether the combined or single contract should be accounted for as more than one performance obligation.
Transaction Price
The transaction prices for each of our primary revenue streams are as follows:
•Flights — The fixed quoted amount including any flight credits.
•Memberships — The one-time initiation fee, which was discontinued starting in July 2024, less any flight credits, when signing up (if applicable) and annual membership fees for all years thereafter.
•Aircraft management — The fixed monthly fee to manage the aircraft over the contractual term plus the recovery of owner-incurred expenses and recharge costs that are based on the expenses we incur to operate and maintain the aircraft.
•Other  — Generally based on contractual amounts or time and materials incurred for the work performed or services rendered.
If there is a group of performance obligations bundled in a contract, the transaction price is allocated based upon the relative standalone selling prices of the promised services underlying each performance obligation.
Payment Terms
Under standard payment terms, the member or customer agrees to pay the full stated price in the contract, in advance of the service. We do not provide financing for transactions. Revenue in the consolidated statements of operations is presented net of discounts and incentives of $12.1 million, $10.6 million and $9.6 million for the years ended December 31, 2025, 2024 and 2023, respectively. We generally do not issue refunds for flights unless there is a failure to meet a service obligation with respect to such flight. Refunded amounts for annual membership and initiation fees are granted to some customers that no longer wish to remain members following their first flight and were $0.7 million, $2.1 million and $3.5 million for the years ended December 31, 2025, 2024 and 2023, respectively.
Contract Balances
Receivables from members and customer contracts represent amounts owed by a member or customer for services we have performed and are included within Accounts receivable, net, on the consolidated balance sheets. Accounts receivable, net consisted of the following (in thousands):
December 31, 2025December 31, 2024
Gross receivables from members and customers$30,960 $39,187 
Undeposited funds1,336 790 
Less: Allowance for credit losses(8,047)(7,661)
Accounts receivable, net$24,249 $32,316 
The opening balance of Accounts receivable, net as of December 31, 2023 was $38.2 million.
Contract liabilities represent obligations to transfer services to a member or customer for which we have already received consideration. Purchases of flights, Membership Funds, initiation fees, including flight credits (if applicable), and annual membership fee payments are received up front in advance of performance under the contract and initially deferred as a liability.
The balance classified as Deferred revenue, current includes prepaid flights and flight credits, and annual membership and initiation fees. Prepaid flights and flight credits are redeemable for flights at any time. The balance classified as Deferred revenue, non-current includes amounts to be recognized beyond 12 months following the balance sheet date.
Deferred revenue consisted of the following (in thousands):
 December 31, 2025December 31, 2024
Flights - prepaid$726,506 $729,581 
Memberships - annual dues10,328 17,638 
Memberships - initiation fees— 494 
Flights - credits2,018 1,899 
Deferred revenue - total $738,852 $749,612 
The opening balance for Deferred revenue as of December 31, 2023 was $724.2 million. Changes in deferred revenue for the year ended December 31, 2025 were as follows (in thousands):
Deferred revenue as of December 31, 2024$749,612 
Amounts deferred during the period725,735 
Revenue recognized from amounts included in the deferred revenue beginning balance(453,325)
Revenue from current period sales(283,170)
Deferred revenue as of December 31, 2025$738,852 
Revenue expected to be recognized in future periods for performance obligations that are unsatisfied, or partially unsatisfied, as of December 31, 2025 was as follows (in thousands):
2026
$481,930 
2027
128,461 
2028
128,461 
Total
$738,852 
Costs to Obtain Contract
Commissions are granted to certain employees and consultants separately for the initial sales of memberships, additional subsequent contract renewals, when members purchase Membership Funds on their accounts or for charter flights. In addition, members are eligible to receive a credit if they refer a new customer who signs up for a membership in the Wheels Up program. For periods prior to the year ended December 31, 2024, commissions were also granted for the execution of aircraft management agreements, additional subsequent contract renewals and performance over the contractual term. The cost of commissions and referral fees are capitalized as an asset on the consolidated balance sheets as these are incremental amounts directly related to attaining a contract with a member. Capitalized costs related to sales commissions and referral fees were $8.4 million, $8.8 million and $8.1 million for the years ended December 31, 2025, 2024 and 2023, respectively.
As of December 31, 2025 and 2024, capitalized sales commissions and referral fees of $4.8 million and $4.6 million, respectively, were included in Other current assets, and $0.1 million and $0.3 million, respectively, were included in Other non-current assets on the consolidated balance sheets.
Amounts capitalized for certain costs incurred to obtain a contract are periodically reviewed for impairment and amortized on a straight-line basis concurrently over the same period of benefit in which the associated contract revenue is recognized. Amortization expense related to capitalized sales commissions and referral fees is included in Sales and marketing expense in the consolidated statements of operations and was $8.5 million, $8.8 million and $9.5 million for the years ended December 31, 2025, 2024 and 2023, respectively.