Property and equipment, net, consists of the following (in thousands):


	December 31, 2025			December 31, 2024
Aircraft, equipment and rotable spares	$	45,519		$	40,290
Equipment purchase deposits		2,000			2,000
Leasehold improvements		2,192			2,301
Office, vehicles and ground equipment		1,245			1,158
Internal-use software		4,993			2,729
Property and equipment, gross		55,949			48,478
Accumulated depreciation		(10,354	)		(6,265	)
Property and equipment, net	$	45,595		$	42,213

The Company recorded depreciation expense of $5.7 million and $4.7 million for the years ended December 31, 2025 and 2024, respectively. Depreciation expense is recognized as a component of Depreciation and Amortization expense in the accompanying Consolidated Statement of Operations.

For the years ended December 31, 2025 and 2024, the Company recorded losses on disposal of property and equipment of $1.0 million and gains on disposal of property of $0.7 million, respectively. For the gains recorded during the year ended December 31, 2024, $0.4 million was the result of sale-leaseback transactions (see Note 7, Leases).