v3.25.2
LEASES
 6 Months Ended
Jun. 30, 2025
Leases [Abstract]  
LEASES LEASES
Leases primarily pertain to certain controlled aircraft, office spaces and operational facilities, which are all accounted for as operating leases. Certain of these operating leases have renewal options to further extend for additional time periods at our discretion.
We have certain variable lease agreements with certain aircraft lessors that contain payment terms based on an hourly lease rate multiplied by the number of flight hours for the applicable aircraft during a given period. Variable lease payments are not included in the right-of-use asset and lease liability balances but rather are expensed as incurred.
The components of net lease cost were as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Operating lease costs$3,732 $7,509 $9,350 $15,049 
Short-term lease costs1,797 173 2,665 386 
Variable lease payments1,086 5,826 3,062 10,139 
Total lease costs$6,615 $13,508 $15,077 $25,574 
Lease costs related to leased aircraft and operational facilities are included in Cost of revenue in the condensed consolidated statements of operations. Lease costs related to leased aircraft were $3.9 million and $9.3 million during the three and six months ended June 30, 2025, respectively, and $8.6 million and $16.7 million for the three and six months ended June 30, 2024, respectively.
Lease costs related to our leased corporate headquarters and other office space, including expenses for non-lease components, are allocated within the condensed consolidated statements of operations based on employee headcount. Sublease income is presented in General and administrative expenses in the condensed consolidated statements of operations, and was not material for each of the three and six months ended June 30, 2025 and 2024.
As part of our continuing cost reduction initiatives, in the first quarter of 2025, we leased alternative corporate office space in New York City and vacated a larger leased corporate office space in New York City, for which we are actively seeking a sublease tenant. Vacating the former office space was identified as a triggering event for impairment testing for the impacted asset group, including the right-of-use asset and associated leasehold improvements and furniture. We estimated the fair value of the asset group using a discounted cash flow approach, which considered estimated future cash flows associated with the asset group. We recorded a non-cash impairment charge of $20.2 million during the three months ended March 31, 2025 representing the full carrying value of the
right of use asset for the vacated space. The impairment charge is presented in General and administrative expense in the condensed consolidated statements of operations for the six months ended June 30, 2025.
Supplemental cash flow information related to operating leases were as follows (in thousands):
Six Months Ended June 30,
20252024
Cash paid for amounts included in the measurement of operating lease liabilities:
Operating cash flows paid for operating leases$9,877 $15,604 
Right-of-use assets obtained in exchange for operating lease obligations$10,614 $3,017 
Supplemental balance sheet information related to leases were as follows:
June 30, 2025December 31, 2024
Weighted-average remaining lease term (in years):
Operating leases6.86.6
Weighted-average discount rate:
Operating leases10.5%10.1%
As of June 30, 2025, maturities of lease liabilities were as follows (in thousands):
Year ending December 31,Operating Leases
2025 (remaining)$7,622 
202613,164 
202712,856 
202811,259 
202910,880 
Thereafter27,516 
Total lease payments 83,297 
Less: Imputed interest(23,928)
Total lease obligations$59,369