Operating Revenues (Tables)
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6 Months Ended |
Jun. 30, 2026 |
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| Agreements with other airlines |
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| Schedule of deferred revenue and unbilled revenues |
The following table summarizes the amount of deferred revenue, recognition of previously deferred revenue and change in unbilled revenue for revenue recognized that is in excess of (or less than) the fixed monthly non-lease and lease payments received under the Company’s capacity purchase agreements for the three and six months ended June 30, 2026 and 2025 (in thousands): | | | | | | | | | | | | | | | For the three months ended June 30, | | For the six months ended June 30, | | | 2026 | | 2025 | | 2026 | | 2025 | Non-lease fixed monthly payments: | | | | | | | | | | | | | Revenue deferred on fixed monthly payments received | | $ | — | | $ | — | | $ | — | | $ | — | Revenue recognized that was deferred in a prior period | | | 16,803 | | | 11,760 | | | 34,294 | | | 21,220 | Increase in unbilled revenue | | | 2,935 | | | 5,619 | | | 993 | | | 5,707 | Total non-lease revenue recognized in excess of fixed monthly payments received during the period | | $ | 19,738 | | $ | 17,379 | | $ | 35,287 | | $ | 26,927 | Lease fixed monthly payments: | | | | | | | | | | | | | Revenue deferred on fixed monthly payments received | | $ | — | | $ | — | | $ | — | | $ | — | Revenue recognized that was deferred in a prior period | | | 6,134 | | | 3,799 | | | 13,391 | | | 6,034 | Increase in unbilled revenue | | | 1,000 | | | 1,798 | | | 2,108 | | | 2,925 | Total lease revenue recognized in excess of fixed monthly payments received during the period | | $ | 7,134 | | $ | 5,597 | | $ | 15,499 | | $ | 8,959 | Total revenue recognized in excess of fixed monthly payments received during the period | | $ | 26,872 | | $ | 22,976 | | $ | 50,786 | | $ | 35,886 |
The Company's unbilled revenue and deferred revenue balances were reflected in the following balance sheet line items at June 30, 2026 and December 31, 2025 (in thousands): | | | | | | | | | June 30, | | December 31, | | | 2026 | | 2025 | Unbilled revenue - other current assets | | $ | 2,461 | | $ | 1,133 | Unbilled revenue - other long-term assets | | | 28,434 | | | 26,661 | Total unbilled revenue | | $ | 30,895 | | $ | 27,794 | | | | | | | | Deferred revenue - other current liabilities | | | 78,840 | | | 163,894 | Deferred revenue - other long-term liabilities | | | 165,878 | | | 128,509 | Total deferred revenue | | $ | 244,718 | | $ | 292,403 | Net deferred revenue balance | | $ | 213,823 | | $ | 264,609 |
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| Schedule of aircraft and agreements with major airline partners |
| | | | | | | United Express Agreements | | | | | | | Agreement | | Aircraft type | | Number of Aircraft | | Term / Termination Dates | United Express Agreements | | • E175 | | 122 | | Individual aircraft have scheduled | (capacity purchase agreements) | | • CRJ700/E170 | | 8 | | removal dates under the agreements | | | • CRJ550 | | 36 | | between 2026 and 2035 | | | • CRJ200 | | 36 | | | | | | | | | | United Express Prorate Agreement | | • CRJ200 | | 37* | | Terminable with 120-day notice | Total under United Express Agreements | | | | 239 | | | | | | | | | | Delta Connection Agreements | | | | | | | Agreement | | Aircraft type | | Number of Aircraft | | Term / Termination Dates | Delta Connection Agreement | | • E175 | | 87 | | Individual aircraft have scheduled | (capacity purchase agreement) | | • CRJ900 | | 34 | | removal dates under the agreement | | | • CRJ700 | | 2 | | between 2026 and 2035 | | | | | | | | Delta Connection Prorate Agreement | | • CRJ550 | | 16* | | Terminable with 30-day notice | Total under Delta Connection Agreements | | | | 139 | | | | | | | | | | American Agreements | | | | | | | Agreement | | Aircraft type | | Number of Aircraft | | Term / Termination Dates | American Agreement | | • E175 | | 20 | | Individual aircraft have scheduled | (capacity purchase agreement) | | • CRJ900 | | 5 | | removal dates under the agreement | | | • CRJ700 | | 63 | | between 2027 and 2032 | | | | | | | | American Prorate Agreement | | • CRJ900 | | 4* | | Terminable with 180-day notice | | | • CRJ700 | | 4* | | | Total under American Agreements | | | | 96 | | | | | | | | | | Alaska Agreement | | | | | | | Agreement | | Aircraft type | | Number of Aircraft | | Term / Termination Dates | Alaska Agreement | | • E175 | | 43 | | Individual aircraft have scheduled | (capacity purchase agreement) | | | | | | removal dates under the agreement | | | | | | | between 2030 and 2038 |
| * | The Company’s prorate agreements are based on specific routes, not a specific aircraft count. The number of aircraft listed above for each prorate agreement approximates the number of aircraft the Company uses to serve the prorate routes. |
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| Schedule of future minimum rental payments for operating leases |
| | | | | | | | | | | | | | | For the three months ended June 30, | | For the six months ended June 30, | | | 2026 | | 2025 | | 2026 | | 2025 | Operating lease fixed revenue | | $ | 15,507 | | $ | 16,697 | | $ | 33,249 | | $ | 32,762 | Operating lease variable revenue | | | 9,265 | | | 8,526 | | | 16,710 | | | 15,535 | Airport customer service and other revenue | | | 13,430 | | | 22,493 | | | 23,535 | | | 31,880 | Lease, airport services and other | | $ | 38,202 | | $ | 47,716 | | $ | 73,494 | | $ | 80,177 |
The following table summarizes future minimum rental income under operating leases primarily related to leased aircraft and engines that had remaining non-cancelable lease terms as of June 30, 2026 (in thousands): | | | | July 2026 - December 2026 | | $ | 24,506 | 2027 | | | 45,657 | 2028 | | | 44,277 | 2029 | | | 42,748 | 2030 | | | 26,459 | Thereafter | | | 2,723 | Total future minimum rental income under operating leases | | $ | 186,370 |
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| Schedule of allowance for credit losses |
The following table summarizes the changes in allowance for credit losses (in thousands): | | | | | | Allowance for Credit Losses | Balance at December 31, 2025 | | $ | 22,509 | Adjustments to credit loss reserves | | | (1,150) | Write-offs charged against allowance | | | (94) | Balance at June 30, 2026 | | $ | 21,265 |
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| Airport customer service and other |
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| Agreements with other airlines |
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| Schedule of revenue by type |
The following table represents the Company’s lease, airport services and other revenues for the three and six months ended June 30, 2026 and 2025 (in thousands): | | | | | | | | | | | | | | | For the three months ended June 30, | | For the six months ended June 30, | | | 2026 | | 2025 | | 2026 | | 2025 | Operating lease fixed revenue | | $ | 15,507 | | $ | 16,697 | | $ | 33,249 | | $ | 32,762 | Operating lease variable revenue | | | 9,265 | | | 8,526 | | | 16,710 | | | 15,535 | Airport customer service and other revenue | | | 13,430 | | | 22,493 | | | 23,535 | | | 31,880 | Lease, airport services and other | | $ | 38,202 | | $ | 47,716 | | $ | 73,494 | | $ | 80,177 |
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| Flying agreements |
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| Agreements with other airlines |
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| Schedule of revenue by type |
The following table disaggregates the Company’s flying agreements revenue by type for the three and six months ended June 30, 2026 and 2025 (in thousands): | | | | | | | | | | | | | | | For the three months ended June 30, | | For the six months ended June 30, | | | 2026 | | 2025 | | 2026 | | 2025 | Capacity purchase agreements flight operations revenue (non-lease component) | | $ | 677,213 | | $ | 682,948 | | $ | 1,311,082 | | $ | 1,322,101 | Capacity purchase agreements fixed aircraft lease revenue | | | 107,579 | | | 104,220 | | | 212,034 | | | 215,208 | Capacity purchase agreements variable aircraft lease revenue | | | 78,913 | | | 54,898 | | | 150,286 | | | 89,937 | Prorate agreements and charter revenue | | | 200,844 | | | 145,445 | | | 369,032 | | | 276,259 | Flying agreements revenue | | $ | 1,064,549 | | $ | 987,511 | | $ | 2,042,434 | | $ | 1,903,505 |
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