Loss (Gain) on Disposal

9 Months Ended

Sep. 30, 2025

Discontinued Operations and Disposal Groups [Abstract]

Loss (Gain) on Disposal

Loss (Gain) on Disposal

During the three months ended September 30, 2025 and the Successor Period, the Company recorded a net gain of $113.7 million and $114.0 million, respectively, within loss (gain) on disposal of assets in the condensed consolidated statements of operations. These net gains included a $117.7 million gain recorded as a result of 14 sale leaseback transactions entered into during the third quarter of 2025, related to previously owned engines, which resulted in operating leases. Refer to Note 13, Leases for additional information on the sale leaseback transactions. In addition, these net gains included a $3.2 million gain related to the reclassification of aircraft previously classified as held for sale, which were reclassified to held and used during the latter part of the third quarter of 2025. Refer to Note 15, Fair Value Measurements, for additional information regarding this reclassification. Furthermore, during the Successor period, the Company recorded a $1.8 million gain as a result of one aircraft sale leaseback transaction related to a new aircraft delivery completed during the second quarter of 2025.

These gains were partially offset by $2.7 million and $4.4 million losses during the three months ended September 30, 2025 and the Successor Period, respectively. These losses resulted from adjustments to previously recorded impairment charges recognized in the fourth quarter of 2024, reflecting a change in estimated costs to sell associated with the Company’s aircraft sale and purchase agreement with GA Telesis, LLC ("GAT"), entered into on October 29, 2024, prior to the reclassification of these aircraft to held and used during the latter part of the third quarter of 2025. In addition, during the three months ended September 30, 2025 and the Successor Period, the Company recognized a $2.0 million loss, respectively, related to the sale of one aircraft to GAT in July 2025.

During the Current Predecessor Period, the Company recorded a loss of $11.7 million within loss (gain) on disposal of assets in the condensed consolidated statements of operations. This loss included an $18.5 million adjustment to previously recorded impairment charges in the fourth quarter of 2024, reflecting a change in estimated costs to sell associated with the Company’s aircraft sale and purchase agreement with GAT entered into on October 29, 2024, as well as $0.4 million in losses, related to the write-off of obsolete assets and other adjustments. These losses were partially offset by a $6.4 million gain recorded as a result of two aircraft sale leaseback transactions related to new aircraft deliveries completed during the Current Predecessor Period and a $0.9 million net gain true-up recorded related to the sale of A319 airframes and engines sold in 2024.