| Leases |
Note 7. Leases Operating Leases Supplemental balance sheet information related to operating leases is as follows (in thousands):
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Operating Leases |
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Classification |
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December 31,
2025 |
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December 31,
2024 |
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Assets |
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Right-of-use assets |
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Operating lease right-of-use assets |
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$ |
12,510 |
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$ |
17,046 |
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Liabilities |
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Lease liabilities, current |
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Operating lease liabilities, current |
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$ |
3,636 |
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$ |
4,120 |
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Lease liabilities, current |
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Due to related parties, current |
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|
457 |
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|
1,216 |
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Lease liabilities, long term |
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Operating lease liabilities, long term |
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|
8,714 |
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|
11,540 |
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Lease liabilities, long term |
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Due to related parties, long term |
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|
— |
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|
457 |
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Total lease liabilities |
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$ |
12,807 |
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|
$ |
17,333 |
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Lease term and discount rate were as follows:
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December 31,
2025 |
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December 31,
2024 |
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Weighted average remaining lease term |
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3.82 years |
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4.29 years |
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Weighted average discount rate |
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|
8.82 |
% |
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|
8.68 |
% |
The components of lease cost are as follows (in thousands):
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Year ended December 31, |
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Lease Cost |
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Classification |
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2025 |
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|
2024 |
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Operating lease cost - aircraft |
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Cost of revenue |
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$ |
7,248 |
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|
$ |
11,123 |
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Operating lease cost - non-aircraft |
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Cost of revenue |
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|
22 |
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|
781 |
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Operating lease cost - non-aircraft |
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General and administrative |
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|
802 |
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|
607 |
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Lease cost, short term - aircraft |
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Cost of revenue |
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|
433 |
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|
548 |
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Lease cost, short term - non-aircraft |
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Cost of revenue |
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|
2,719 |
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|
— |
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Lease cost, short term |
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General and administrative |
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|
29 |
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|
181 |
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Engine reserves |
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Cost of revenue |
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|
3,526 |
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|
3,475 |
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Total lease cost |
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$ |
14,779 |
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$ |
16,715 |
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Supplemental disclosures of cash flow and other information related to leases are as follows (in thousands):
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Year Ended December 31, |
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2025 |
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|
2024 |
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Cash paid for operating lease liabilities |
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$ |
6,788 |
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$ |
7,889 |
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Non-cash transactions - operating lease assets obtained in exchange for operating lease liabilities |
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$ |
1,103 |
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$ |
11,606 |
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Maturities of operating lease liabilities are as follows as of December 31, 2025 (in thousands):
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Amount |
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2026 |
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$ |
5,011 |
|
2027 |
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|
3,524 |
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2028 |
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|
2,358 |
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2029 |
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|
2,219 |
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2030 |
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|
1,929 |
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Thereafter |
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— |
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Total lease payment, undiscounted |
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|
15,041 |
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Less: imputed interest |
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|
2,234 |
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Total |
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$ |
12,807 |
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Sale-leaseback transactions During the year ended December 31, 2024, the Company entered into three sale-leaseback transactions for the Company’s owned aircraft. Sales proceeds totaled $8.7 million, which resulted in the addition of corresponding operating use right of use assets and operating lease liabilities. The Company recorded a gain of $0.4 million as a result of the sale transactions. The leases will carry a term of six years. Finance Leases The Company’s finance lease assets include an aircraft, an aircraft engine, and other equipment. Supplemental balance sheet information related to finance leases is as follows (in thousands):
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December 31,
2025 |
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December 31,
2024 |
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Assets |
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Finance lease right-of-use assets |
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$ |
809 |
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$ |
1,115 |
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Liabilities |
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Finance lease liabilities, current |
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$ |
277 |
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$ |
265 |
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Finance lease liabilities, long term |
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|
670 |
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|
948 |
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Total finance lease liabilities |
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$ |
947 |
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$ |
1,213 |
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Lease term and discount rate are as follows:
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December 31,
2025 |
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December 31,
2024 |
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Weighted average remaining lease term |
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3.3 years |
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|
4.2 years |
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Weighted average discount rate |
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|
11.48 |
% |
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|
11.37 |
% |
Supplemental disclosures of cash flow and other information related to leases are as follows (in thousands):
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Year Ended December 31, |
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|
2025 |
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|
2024 |
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Cash paid for finance lease liabilities |
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$ |
266 |
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$ |
234 |
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Non-cash transactions - Finance lease assets obtained in exchange for finance lease liabilities |
|
$ |
— |
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|
$ |
95 |
|
Maturities of finance lease liabilities are as follows as of December 31, 2025 (in thousands):
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Amount |
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2026 |
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$ |
371 |
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2027 |
|
|
336 |
|
2028 |
|
|
264 |
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2029 |
|
|
176 |
|
2030 |
|
|
— |
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Thereafter |
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|
— |
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Total lease payment, undiscounted |
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|
1,147 |
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Less: imputed interest |
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|
(200 |
) |
Total |
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$ |
947 |
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