Loss (Gain) on Disposal

3 Months Ended

Mar. 31, 2024

Discontinued Operations and Disposal Groups [Abstract]

Loss (Gain) on Disposal

Loss (Gain) on Disposal

During the three months ended March 31, 2024, the Company recorded a gain of $3.0 million in loss (gain) on disposal of assets in the condensed consolidated statements of operations, including an $8.7 million gain recorded as a result of three aircraft sale leaseback transactions related to new aircraft deliveries completed during the three months ended March 31, 2024.

During the three months ended March 31, 2024, the Company completed the sale of 5 A319 airframes and 15 A319 engines and recorded a related net loss of $3.9 million. In addition, during the first quarter 2024, the Company completed five sale-leaseback transactions (on aircraft previously owned by the Company) of which two resulted in operating leases and three would have been deemed finance leases resulting in failed sale-leaseback transactions. As a result of the two sale-leaseback transactions that resulted in operating leases, the Company recorded a related loss of $1.7 million within loss on disposal of assets. Refer to Note 10, Leases for additional information on the five sale-leaseback transactions.

During the three months ended March 31, 2023, the Company recorded $7.1 million in loss on disposal of assets in the condensed consolidated statements of operations. Loss on disposal of assets for the three months ended March 31, 2023 primarily consisted of $7.8 million related to the loss on two aircraft sale leaseback transactions. In addition, during the three months ended March 31, 2023, the Company completed the sale of four A319 aircraft and recorded a related net gain of $1.2 million.