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Fair Value Measurements
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Under ASC 820, "Fair Value Measurements and Disclosures," disclosures relating to how fair value is determined for assets and liabilities are required, and a hierarchy for which these assets and liabilities must be grouped is established, based on significant levels of inputs, as follows:
Level 1—Quoted prices in active markets for identical assets or liabilities.
Level 2—Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company utilizes several valuation techniques in order to assess the fair value of the Company’s financial assets and liabilities.
Long-Lived Assets Impairment Analysis
The Company records impairment charges on long-lived assets used in operations when events and circumstances indicate that the assets may be impaired, the undiscounted cash flows estimated to be generated by those assets are less than the carrying amount of those assets, and the net book value of the assets exceeds their estimated fair value.
The Company has determined that indicators of potential impairment, including negative cash flows, were present as of June 30, 2025. These indicators prompted the Company to perform a recoverability analysis on its assets to assess whether any impairment losses should be recognized. In estimating the undiscounted future cash flows, the Company uses certain assumptions, including, but not limited to, the estimated, undiscounted future cash flows expected to be generated by these assets, estimates of length of service the asset will be used in the Company’s operations and estimated salvage values. The Company assessed whether any impairment of its long-lived assets existed as of June 30, 2025 and has determined that the assets are recoverable.
The Company’s assumptions about future conditions important to its assessment of potential impairment of its long-lived assets are subject to uncertainty, and the Company will continue to monitor these conditions in future periods as new information becomes available and will update its analyses accordingly.
Indefinite-Lived Intangible Assets

With the adoption of fresh start accounting, the Company recorded $83.5 million of indefinite-lived intangible assets within intangible assets on the Company's condensed consolidated balance sheet as of the Fresh Start Reporting Date. The Company's indefinite-lived intangible assets are related to landing and take-off rights and authorizations (Slots) at the LaGuardia Airport (“LGA”).

These indefinite-lived intangible assets are assessed for impairment annually in September, or more frequently if events or circumstances indicate that the fair values of indefinite-lived intangible assets may be lower than their carrying values. As of June 30, 2025, the Company has not identified any such events or circumstances that would indicate the fair value of the LGA Slots is below their carrying value. Indefinite-lived intangible assets are assessed for impairment by initially performing a qualitative assessment. The Company primarily relies on a quantitative approach to assess impairment, using fair value estimates provided annually by an independent third-party specialist. The specialist applies a market approach to determine fair value, which relies on recent slot transaction data, market lease rates, and input from industry participants and regulatory agencies. Slot values are further adjusted based on factors such as time-of-day, peak demand, and qualitative considerations. These valuations reflect market participant assumptions and are used to determine whether it is more likely than not that the fair value of the Slots is less than their carrying amount.
Long-Term Debt
The estimated fair value of the Company's term loan debt agreements and revolving credit facility have been determined to be Level 3, as certain inputs used to determine the fair value of these agreements are unobservable. The Company utilizes a discounted cash flow method to estimate the fair value of the Level 3 long-term debt. The estimated fair value of the Company's Exit Secured Notes and publicly and non-publicly held EETC debt agreements has been determined to be Level 2, as the Company utilizes quoted market prices in markets with low trading volumes to estimate the fair value of its Level 2 long-term debt.
    The carrying amounts and estimated fair values of the Company's long-term debt at June 30, 2025 and December 31, 2024 were as follows (in millions):
SuccessorPredecessor
June 30, 2025December 31, 2024Fair Value Level Hierarchy
 Carrying ValueEstimated Fair ValueCarrying ValueEstimated Fair Value
DIP term loans$— $— $309.0 $309.0 Level 3
Fixed-rate term loans880.2 848.1 972.2 970.7 Level 3
Unsecured term loans136.3 135.2 136.3 130.4 Level 3
2015-1 EETC Class A 223.6 203.7 234.6 215.8 Level 2
2017-1 EETC Class AA154.3 131.8 160.3 140.4 Level 2
2017-1 EETC Class A51.4 42.7 53.4 45.8 Level 2
2017-1 EETC Class B— — 44.7 40.5 Level 2
2025-1 EETC Class B215.0 196.8 — — Level 2
Revolving credit facility— — 300.0 300.0 Level 3
Exit secured notes850.3 614.5 — — Level 2
Total long-term debt$2,511.1 $2,172.8 $2,210.5 $2,152.6 
8.00% senior secured notes
$— $— $1,110.0 $1,117.9 Level 3
4.75% convertible notes due 2025
— — 25.1 8.8 Level 2
1.00% convertible notes due 2026
— — 500.0 166.4 Level 2
Total liabilities subject to compromise$— $— $1,635.1 $1,293.1 

Cash and Cash Equivalents

Cash and cash equivalents at June 30, 2025 and December 31, 2024 were comprised of liquid money market funds and cash and are categorized as Level 1 instruments. The Company maintains cash with various high-quality financial institutions.
Restricted Cash

Restricted cash is comprised of cash held in accounts subject to account control agreements or otherwise pledged as collateral against the Company's letters of credit and is categorized as a Level 1 instrument. In addition, as of June 30, 2025, the Company had $48.7 million in standby letters of credit secured by $49.6 million of restricted cash, of which $44.4 million were issued letters of credit. The Company also had $50.0 million of restricted cash held in an account subject to a control agreement under its credit card processing agreement, $46.5 million of restricted cash held in accounts subject to control agreements to be used for the payment of interest and fees on the Exit Secured Notes and $6.0 million in pledged cash pursuant to its corporate credit cards.

Assets Held for Sale
The Company's assets held for sale as of June 30, 2025 primarily consisted of the 21 A320ceo and A321ceo aircraft planned for future sales. Currently, these aircraft are not being utilized within the operation and are available for immediate sale. The assets are measured at the lower of the carrying amount or fair value, less cost to sell and a loss is recognized for any initial adjustment of the asset’s carrying amount to fair value, less cost to sell. Such valuations include estimations of fair values and incremental direct costs to transact a sale. The fair values were determined using Level 3 fair value inputs primarily based on the agreed upon sales price for each aircraft.
    Assets and liabilities measured at gross fair value on a recurring basis are summarized below (in millions):
 Successor Fair Value Measurements as of June 30, 2025
 TotalLevel
1		Level
2		Level
3
Cash and cash equivalents$407.5 $407.5 $— $— 
Restricted cash152.1 152.1 — — 
Short-term investment securities— — — — 
Assets held for sale449.1 — — 449.1 
Total assets$1,008.7 $559.6 $— $449.1 
Total liabilities$— $— $— $— 
 Predecessor Fair Value Measurements as of December 31, 2024
 TotalLevel
1		Level
2		Level
3
Cash and cash equivalents$902.1 $902.1 $— $— 
Restricted cash168.4 168.4 — — 
Short-term investment securities118.3 118.3 — — 
Assets held for sale463.0 — — 463.0 
Total assets$1,651.8 $1,188.8 $— $463.0 
Total liabilities$— $— $— $— 

The Company had no transfers of assets or liabilities between any of the above levels during the six months ended June 30, 2025 and the year ended December 31, 2024.