Property and equipment, net consisted of the following:


	June 30, 2026			December 31, 2025
Transportation equipment	$	310,502		$	309,675
Office furniture and equipment		3,623			3,418
Leasehold improvements		2,599			2,417
Construction in progress		1,339			236
Deposits on transportation equipment		3,628			1,725
		321,691			317,471
Less: Accumulated depreciation		(93,410	)		(93,741	)
Property and equipment, net	$	228,281		$	223,730

Depreciation expense for property and equipment was $4,857 and $9,524, respectively for the three and six months ended June 30, 2026 and $5,247 and $10,974 for the three and six months ended June 30, 2025. The net carrying value of disposals of long-lived assets as of June 30, 2026 and December 31, 2025 was $9,892 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 June 30, 2026 or December 31, 2025.