Loss (Gain) on Disposal

9 Months Ended

Sep. 30, 2024

Discontinued Operations and Disposal Groups [Abstract]

Loss (Gain) on Disposal

Loss (Gain) on Disposal

During the three and nine months ended September 30, 2024, the Company recorded a loss of $3.2 million and a gain of $13.9 million, respectively, in loss (gain) on disposal of assets in the condensed consolidated statements of operations. During the three months ended September 30, 2024, the Company completed the sale of 2 A319 airframes and 2 A319 engines and recorded a related net loss of $2.8 million. In addition, the Company recorded $0.4 million in losses during the three months ended September 30, 2024, related to the write-off of obsolete assets and other adjustments.

Loss (gain) on disposal of assets for the nine months ended September 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 first and second quarters of 2024. During the nine months ended September 30, 2024, the Company completed the sale of 12 A319 airframes and 26 A319 engines and recorded a related net loss of $6.1 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 nine months ended September 30, 2024. Refer to Note 10, Leases for additional information on the five sale leaseback transactions.

During the three and nine months ended September 30, 2023, the Company recorded a gain of $2.3 million and a loss of $5.7 million, respectively, in loss (gain) on disposal of assets in the condensed consolidated statements of operations. Gain on disposal of assets for the three months ended September 30, 2023 included a $2.2 million gain related to three aircraft sale leaseback transactions completed during the third quarter of 2023. Loss (gain) on disposal of assets for the nine months ended September 30, 2023 included a $4.5 million loss related to eight aircraft sale leaseback transactions completed during the nine months ended September 30, 2023.

During the three months ended September 30, 2023, the Company completed the sale of four A319 airframes and five A319 engines and recorded a related net gain of $0.3 million. During the nine months ended September 30, 2023, the Company completed the sale of 11 A319 airframes and 16 A319 engines and recorded a related net gain of $1.9 million. In addition, the

Company recorded $0.2 million and $3.1 million in losses recorded during the three and nine months ended September 30, 2023, respectively, related to the write-off of obsolete assets and other adjustments.