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


	March 31, 2026			December 31, 2025
Aircraft, equipment and rotable spares	$	46,759		$	45,519
Equipment purchase deposits		2,000			2,000
Leasehold improvements		4,914			2,192
Office, vehicles and ground equipment		2,431			1,245
Internal-use software		6,035			4,993
Property and equipment, gross		62,139			55,949
Accumulated depreciation		(14,746	)		(10,354	)
Property and equipment, net	$	47,393		$	45,595

The Company recorded depreciation expense of $1.7 million and $1.2 million for the three months ended March 31, 2026 and 2025, respectively. Depreciation expense is recognized as a component of Depreciation and amortization expense in the accompanying Condensed Consolidated Statements of Operations.

The Company recorded a loss of $0.7 million on the sale of property and equipment for the three months ended March 31, 2025. The Company did not have any sales of property and equipment during the three months ended March 31, 2026.