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FAIR VALUE MEASUREMENTS
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability, an exit price, in an orderly transaction between unaffiliated willing market participants on the measurement date under current market conditions. Assets and liabilities recorded at fair value are measured and classified in accordance with a three-tier fair value hierarchy based on the observability of the inputs available and activity in the markets
used to measure fair value. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.
Level 1 -Quoted prices, unadjusted, in active markets for identical assets or liabilities that can be accessed at the measurement date.
Level 2 -Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 -Unobservable inputs developed using our own estimates and assumptions, which reflect those that market participants would use in pricing the asset or liability.
Financial instruments that are measured at fair value on a recurring and non-recurring basis and their corresponding placement in the fair value hierarchy consisted of the following (in thousands):
June 30, 2025
Level 1Level 2Level 3Fair Value
Assets:
Money market funds(1)
$20,995 $— $— 20,995 
Total assets$20,995 $— $— $20,995 
Liabilities:
Warrant liability - Public Warrants(1)
$— $13 $— $13 
Warrant liability - Private Warrants(1)
— 7 — 7 
Revolving Equipment Notes(2)
— — 307,927 307,927 
Term Loan(2)
— — 307,556 307,556 
Total liabilities$— $20 $615,483 $615,503 
December 31, 2024
Level 1Level 2Level 3Fair Value
Assets:
Money market funds(1)
$80,812 $— $— $80,812 
Total assets$80,812 $— $— $80,812 
Liabilities:
Warrant liability - Public Warrants(1)
$— $13 $— $13 
Warrant liability - Private Warrants(1)
— 7 — 7 
Revolving Equipment Notes(2)
— — 317,484 317,484 
Term Loan(2)
— — 284,845 284,845 
Total liabilities$— $20 $602,329 $602,349 
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(1)Financial instrument measured on a recurring basis.
(2)Financial instrument measured on a non-recurring basis.

The carrying amount of Money market funds approximates fair value and is classified within Level 1, because we determined the fair value through quoted market prices.
The Warrants (as defined below) were accounted for as a liability in accordance with ASC 815-40. The Warrant liability was measured at fair value upon assumption and on a recurring basis, with changes in fair value presented in the condensed consolidated statements of operations. As of each of June 30, 2025 and December 31, 2024, we used Level 2 inputs for the Warrants. See Note 10 for additional information about the Warrants.
The estimated fair value of the Revolving Equipment Notes is categorized as a Level 3 valuation. We considered the appraised value of aircraft subject to first-priority liens under the Revolving Equipment Notes, as sourced during the second quarter of 2025 and as required under the Revolving Equipment Notes, to determine the fair value of the Revolving Equipment Notes as of June 30, 2025.
The estimated fair value of the Term Loan is categorized as a Level 3 valuation. The estimated fair value as of June 30, 2025 was estimated using a discounted cash flows analysis, based on our current estimated incremental borrowing rate for a similar type of borrowing arrangement and taking into account amounts outstanding as of June 30, 2025 in connection with the Credit Support Premium.