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Fair Value Measurements
 12 Months Ended
Dec. 31, 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.
As of December 31, 2025, the Company identified indicators of potential impairment, including continued negative cash flows and the commencement of the 2025 Chapter 11 Bankruptcy Proceedings during the third quarter of 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, estimated salvage values, and estimates related to the Company's plan of reorganization. The Company assessed whether any impairment of its long-lived assets existed as of December 31, 2025 and has determined that the assets are recoverable.
The Company’s assumptions about future conditions that are important to its assessment of potential impairment of its long-lived assets are subject to uncertainty and may be subject to the Company's reorganization strategy. 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 Asset Impairment Analysis

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 consolidated balance sheet as of the Fresh Start Reporting Date. The Company's indefinite-lived intangible assets are related to the LGA Slots.

These indefinite-lived intangible assets are assessed for impairment annually on September 1 (the "Annual Test Date"), 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 December 31, 2025, the Company had 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 performed a qualitative test to evaluate whether the assets were impaired on the Annual Test Date in 2025. As part of the qualitative test, the Company also considered fair value estimates provided 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, in combination with other qualitative factors considered, 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 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 December 31, 2025 and December 31, 2024, were as follows:
SuccessorPredecessor
December 31, 2025December 31, 2024
 Carrying ValueEstimated Fair ValueCarrying ValueEstimated Fair ValueFair value level hierarchy
(in millions)
DIP term loans$358.6 $358.6 $309.0 $309.0 Level 3
Fixed-rate term loans274.8 325.9 972.2 970.7 Level 3
Unsecured term loans— — 136.3 130.4 Level 3
2015-1 EETC Class A 212.6 200.4 234.6 215.8 Level 2
2017-1 EETC Class AA148.3 136.8 160.3 140.4 Level 2
2017-1 EETC Class A49.4 44.3 53.4 45.8 Level 2
2017-1 EETC Class B— — 44.7 40.5 Level 2
2025 EETC Class B215.0 208.0 — — Level 2
Revolving credit facility due 2028— — 300.0 300.0 Level 3
Total long-term debt$1,258.7 $1,274.0 $2,210.5 $2,152.6 

Cash and Cash Equivalents

Cash and cash equivalents at December 31, 2025 and December 31, 2024 are 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 restrictions imposed by the Bankruptcy court or otherwise pledged as collateral against the Company's letters of credit and is categorized as a Level 1 instrument. As of December 31, 2025, the Company had $36.7 million in standby letters of credit secured by $38.5 million of restricted cash, of which $35.6 million were issued letters of credit. The Company also had $341.8 million of restricted cash held as collateral for the Exit Secured Notes, $100.0 million of restricted cash held in an account subject to a control agreement under its credit card processing agreement, $61.7 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. Furthermore, the Company had $43.3 million allocated to fund required escrow accounts due to the Bankruptcy filing.
Short-term Investment Securities

As of December 31, 2025, the Company did not have short-term investment securities. As of December 31, 2024 the Company had short-term investment securities classified as available-for-sale and generally consisted of U.S. Treasury and U.S. government agency securities with contractual maturities of twelve months or less. The Company's short-term investment securities as of December 31, 2024 were categorized as Level 1 instruments, as the Company used quoted market prices in active markets when determining the fair value of these securities. For additional information, refer to Note 10, Short-term Investment Securities.

Assets Held for Sale
During the third quarter of the Successor Period, the Company reassessed the classification of the remaining 20 A320ceo and A321ceo aircraft that were previously recorded as held for sale. The original sales agreement for these aircraft expired during the third quarter of the Successor Period, and as of December 31, 2025, the Company retained the assets for ongoing use in operations. As the criteria for held for sale classification under ASC 360 are no longer met, the Company reclassified the aircraft to property and equipment on its consolidated balance sheets as they will be held and used. In accordance with the guidance, the assets were measured at the lower of (i) their carrying amount, adjusted for depreciation that would have been recognized had they remained classified as held and used, or (ii) their fair value as of the date the decision not to sell was made. In addition, net proceeds of any refinancing, sale or other disposition of these aircraft after satisfaction in full of any Aircraft Loans secured by such aircraft serve as collateral under the DIP loan agreement executed on October 14, 2025.
During the third quarter of the Successor Period, the Company recorded the related aircraft to their adjusted carrying amount of $429.5 million, within property and equipment on its consolidated balance sheets, which represents the amount the aircraft would have been recorded had they never been classified as held for sale. In addition, the Company recorded a $3.2 million gain, within loss (gain) on disposal of assets within its consolidated statement of operations during the Successor Period, related to this reclassification, reflecting the difference between the adjusted carrying value and the prior held for sale balance.
The Company's assets held for sale as of December 31, 2024 primarily consisted of 21 A320ceo and A321ceos aircraft, which are now classified as property and equipment on the Company's consolidated balance sheets as they will be held and used. For additional information, refer to Note 1, Summary of Significant Accounting Policies.

Assets and liabilities measured at gross fair value on a recurring basis are summarized below:
 
 Successor Fair Value Measurements as of December 31, 2025
 TotalLevel
1		Level
2		Level
3
(in millions)
Cash and cash equivalents$273.0 $273.0 $— $— 
Restricted cash591.4 591.4 — — 
Assets held for sale3.0 — — 3.0 
Total assets$867.4 $864.4 $— $3.0 
Total liabilities$— $— $— $— 

 
 Predecessor Fair Value Measurements as of December 31, 2024
 TotalLevel
1		Level
2		Level
3
(in millions)
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 years ended December 31, 2025 or December 31, 2024.