Loss (Gain) on Disposal

6 Months Ended

Jun. 30, 2024

Discontinued Operations and Disposal Groups [Abstract]

Loss (Gain) on Disposal

Loss (Gain) on Disposal

During the three and six months ended June 30, 2024, the Company recorded a gain of $14.0 million and $17.1 million, respectively, in loss (gain) on disposal of assets in the condensed consolidated statements of operations. Loss (gain) on disposal of assets for the three months ended June 30, 2024, included a $13.3 million gain recorded as a result of four aircraft sale leaseback transactions related to new aircraft deliveries completed during the three months ended June 30, 2024. Loss (gain) on disposal of assets for the six months ended June 30, 2024, included a $22.0 million gain recorded as a result of seven aircraft sale leaseback transactions related to new aircraft deliveries completed during the six months ended June 30, 2024.

During the three months ended June 30, 2024, the Company completed the sale of 5 A319 airframes and 9 A319 engines and recorded a related net gain of $0.6 million. During the six months ended June 30, 2024, the Company completed the sale of 10 A319 airframes and 24 A319 engines and recorded a related net loss of $3.3 million

In addition, during the first quarter of 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 (gain) on disposal of assets during the six months ended June 30, 2024. Refer to Note 10, Leases for additional information on the five sale leaseback transactions.

During the three and six months ended June 30, 2023, the Company recorded a loss of $0.8 million and $7.9 million, respectively, in loss (gain) on disposal of assets in the condensed consolidated statements of operations. Loss (gain) on disposal of assets for the three months ended June 30, 2023 included a $1.2 million gain related to three aircraft sale leaseback transactions completed during the second quarter of 2023. Loss (gain) on disposal of assets for the six months ended June 30, 2023 included a $6.6 million loss related to five aircraft sale leaseback transactions completed during the first and second quarters 2023.

In addition, during the three months ended June 30, 2023, the Company completed the sale of three A319 airframes and four A319 engines and recorded a related net gain of $0.3 million. During the six months ended June 30, 2023, the Company completed the sale of 7 A319 airframes and 11 A319 engines and recorded a related net gain of $1.5 million. In addition, the Company recorded $2.3 million and $2.8 million in losses recorded during the three and six months ended June 30, 2023, respectively, related to the write-off of obsolete assets and other adjustments.