Property and equipment, net consisted of the following:


	March 31, 2026			December 31, 2025
Transportation equipment	$	311,306		$	309,675
Office furniture and equipment		3,579			3,418
Leasehold improvements		2,592			2,417
Construction in progress		1,096			236
Deposits on transportation equipment		3,628			1,725
		322,201			317,471
Less: Accumulated depreciation		(91,935	)		(93,741	)
Property and equipment, net	$	230,266		$	223,730

Depreciation expense for property and equipment was $4,667 and $5,727, for the three months ended March 31, 2026 and 2025, respectively. The net carrying value of disposals of long-lived assets as of March 31, 2026 and December 31, 2025 was $6,811 and $83,093, respectively.

Interest payments on borrowings to acquire aircraft are capitalized for the month of acquisition when the aircraft’s in-service date begins following the 15th of the month. Interest payments for the month of acquisition would be expensed if the aircraft is placed into service before the 15th of the month. There was no capitalized interest as of March 31, 2026 and December 31, 2025, and capitalized interest was included as a component of construction in progress prior to the equipment’s in-service date.