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


	June 30, 2026			December 31, 2025
Aircraft, equipment and rotable spares	$	52,759		$	45,519
Equipment purchase deposits		—			2,000
Leasehold improvements		4,914			2,192
Office, vehicles and ground equipment		2,768			1,245
Internal-use software		7,791			4,993
Property and equipment, gross		68,232			55,949
Accumulated depreciation		(15,850	)		(10,354	)
Property and equipment, net	$	52,382		$	45,595

The Company recorded depreciation expense of $1.7 million and $1.6 million for the three months ended June 30, 2026 and 2025, respectively. The Company recorded depreciation expense of $3.4 million and $2.9 million for the six months ended June 30, 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 losses of $1.1 million and $0.8 million on the sale of property and equipment for the six months ended June 30, 2026 and 2025, respectively.