v3.26.3
FAIR VALUE MEASUREMENTS
 9 Months Ended
Sep. 30, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability, an exit price, in an orderly transaction between unaffiliated willing market participants on the measurement date under current market conditions. Assets and liabilities recorded at fair value are measured and classified in accordance with a three-tier fair value hierarchy based on the observability of the inputs available and activity in the markets used to measure fair value. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.
Level 1 -Quoted prices, unadjusted, in active markets for identical assets or liabilities that can be accessed at the measurement date.
Level 2 -Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 -Unobservable inputs developed using our own estimates and assumptions, which reflect those that market participants would use in pricing the asset or liability.
Financial instruments that are measured at fair value on a recurring and non-recurring basis and their corresponding placement in the fair value hierarchy consisted of the following (in thousands):
September 30, 2026
Level 1Level 2Level 3Fair Value
Assets:
Money market funds(1)
$4,013 $— $— $4,013 
Total assets$4,013 $— $— $4,013 
Liabilities:
Warrant liability - Public Warrants(1)
$— $— $— $— 
Warrant liability - Private Warrants(1)
— — — — 
Series A Equipment Notes(2)
— — 235,867 235,867 
Series B Equipment Notes(2)
— — 70,380 $70,380 
2026 Term Loan
— — 87,437 $87,437 
2023 Term Loans(2)
— — 442,723 442,723 
2023 Revolving Credit Facility(2)
— — 35,364 $35,364 
Total liabilities$— $— $871,771 $871,771 
December 31, 2025
Level 1Level 2Level 3Fair Value
Assets:
Money market funds(1)
$8,383 $— $— $8,383 
Total assets$8,383 $— $— $8,383 
Liabilities:
Warrant liability - Public Warrants(1)
$— $13 $— $13 
Warrant liability - Private Warrants(1)
— 7 — 7 
Series A Equipment Notes(2)
— — 180,676 180,676 
2023 Term Loans(2)
— — 345,386 345,386 
2023 Revolving Credit Facility(2)
— — 5,474 5,474 
Total liabilities$— $20 $531,536 $531,556 
__________
(1)Financial instrument measured on a recurring basis.
(2)Financial instrument measured on a non-recurring basis.

The carrying amount of Money market funds approximates fair value and is classified within Level 1, because we determined the fair value through quoted market prices.
The Warrants (as defined below) were accounted for as a liability in accordance with ASC 815-40. The Warrant liability was measured at fair value upon assumption and on a recurring basis, with changes in fair value presented in the condensed consolidated statements of operations. As of December 31, 2025, we used Level 2 inputs for the Warrants. See Note 11 for additional information about the Warrants.
The estimated fair values of the Series A Equipment Notes and Series B Equipment Notes are categorized as Level 3 valuations. We considered the appraised value of aircraft subject to senior liens under the Revolving Equipment Notes Facility, as sourced during the second quarter of 2026 and as required under the Revolving
Equipment Notes Facility, to determine the fair value of the Series A Equipment Notes and Series B Equipment Notes as of September 30, 2026.
The estimated fair value of the 2023 Term Loans is categorized as a Level 3 valuation. The estimated fair value as of September 30, 2026 was estimated using a discounted cash flows analysis, based on our current estimated incremental borrowing rate for a similar type of borrowing arrangement and taking into account amounts outstanding as of September 30, 2026 in connection with the Credit Support Premium.
The estimated fair value of the 2026 Term Loan is categorized as a Level 3 valuation. The estimated fair value as of September 30, 2026 was estimated using a discounted cash flows analysis, based on our current estimated incremental borrowing rate for a similar type of borrowing arrangement.