v3.26.1
Segment Reporting
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Reporting

Note 14. Segment Reporting

The Company and its chief operating decision maker (“CODM”), which is the Company’s chief executive officer, organize and manage the Company on a consolidated basis, and, accordingly, the Company operates as a single operating and reportable segment, namely its Air Mobility segment.

The Air Mobility segment derives revenues from two categories of services:

Scheduled Air Service – revenue from operating scheduled commercial air service flights which are sold to the public primarily on a per seat basis, and through subsidized EAS revenue awards from the Department of Transportation.

On-Demand – revenue from on-demand flights created for customers on an ad-hoc, by request basis.

The accounting policies of the Air Mobility segment are the same as those described in the summary of significant accounting policies. The CODM assesses performance for the Air Mobility segment and decides how to allocate resources based on net loss as reported on the Condensed Consolidated Statements of Operations. The measure of segment assets is reported on the Condensed Consolidated Balance Sheets as total consolidated assets.

In addition to consolidated financial metrics used in assessing the Air Mobility segment, the CODM also regularly reviews additional significant expense categories, which comprise cost of revenue, exclusive of depreciation and amortization within the Company’s Condensed Consolidated Statements of Operations. Such cost categories are determined to be those most relevant in providing flight services, and are aligned with cost designations measured by other carriers. All other financial statement metrics are reviewed and/or considered on a consolidated basis as follows (in thousands):

 

 

 

Three Months Ended March 31,

 

 

 

2026

 

 

2025

 

 

 

 

 

 

 

 

Revenue

 

$

25,613

 

 

$

23,506

 

Operating Expenses:

 

 

 

 

 

 

Aircraft expenses

 

$

19,535

 

 

$

17,789

 

Pilot expenses

 

 

3,489

 

 

 

3,892

 

Other (1)

 

 

2,922

 

 

 

3,025

 

Cost of revenue, exclusive of depreciation and amortization

 

 

25,946

 

 

 

24,706

 

Technology and development

 

 

2,445

 

 

 

2,680

 

Sales and marketing

 

 

1,966

 

 

 

1,653

 

General and administrative

 

 

6,059

 

 

 

10,886

 

Depreciation and amortization

 

 

2,552

 

 

 

2,148

 

Total operating expenses

 

 

38,968

 

 

 

42,073

 

Operating loss

 

$

(13,355

)

 

$

(18,567

)

Other income (expense):

 

 

 

 

 

 

Changes in fair value of financial instruments carried at fair value, net

 

$

(3,613

)

 

$

5,396

 

Interest expense

 

 

(1,224

)

 

 

(3,895

)

Gain on extinguishment of debt

 

 

-

 

 

 

39

 

Other expense, net

 

 

(2,109

)

 

 

(1,492

)

Total other income (expense), net

 

$

(6,946

)

 

$

48

 

Loss before income taxes

 

 

(20,301

)

 

 

(18,519

)

Income tax benefit

 

 

39

 

 

 

53

 

Net loss

 

$

(20,262

)

 

$

(18,466

)

(1) Other costs of revenue are comprised of personnel costs related to customer service operations, station expenses, reservation systems and passenger re-accommodation/ re-booking on other carriers.

The CODM uses net loss to evaluate income (loss) generated from segment assets (return on assets) in deciding how to allocate resources. Consolidated net loss is used to monitor budget versus actual results. The monitoring of budgeted versus actual results are used in assessing performance of the segment and in establishing management’s compensation.

The Company does not have intra-entity sales or transfers. All of the Company’s long-lived assets are located in the United States and revenue is substantially earned from flights throughout the United States.