Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Significant Components of the Provision for Income Taxes from Continuing Operations

Significant components of the provision for income taxes from continuing operations are as follows:



	Successor		Predecessor
	Period from March 13, 2025 through December 31, 2025		Period from January 1, 2025 through March 12, 2025		Twelve Months Ended December 31, 2024		Twelve Months Ended December 31, 2023
	(in thousands)
Current:
Federal	$	(90)	$	—	$	(5,438)	$	5,449
State and local	85		—		(40)		1,309
Foreign	1,734		389		3,485		1,350
Total current expense (benefit)	1,729		389		(1,993)		8,108
Deferred:
Federal	(6,467)		16,527		(54,922)		(115,905)
State and local	(3,503)		954		(3,293)		(3,334)
Total deferred expense (benefit)	(9,970)		17,481		(58,215)		(119,239)
Total income tax expense (benefit)	$	(8,241)	$	17,870	$	(60,208)	$	(111,131)

Schedule of Reconciliation of Income Tax Expense

The income tax provision differs from that computed at the federal statutory corporate tax rate as follows:


	Successor				Predecessor
	Period from March 13, 2025 through December 31, 2025				Period from January 1, 2025 through March 12, 2025
	(in thousands)		Percentage (%)		(in thousands)		Percentage (%)
U.S. federal statutory tax rate	$	(596,591)	21.0	%	$	18,918	21.0	%
State and local income taxes, net of federal benefit (1)	(2,700)		0.1	%	864		1.0	%
Nontaxable and nondeductible items	23,480		(0.8)	%	(81,300)		(90.2)	%
Foreign tax effects	1,575		(0.1)	%	389		0.4	%
Changes in valuation allowance	565,671		(19.9)	%	78,977		87.6	%
Other	324		—	%	22		—	%
Total income tax expense (benefit)	$	(8,241)	0.3	%	$	17,870	19.8	%

(1) For the Successor Period and Current Predecessor Period, respectively, state and local income taxes in California, Florida and New York City comprised greater than 50% of the tax effect in this category.


	Predecessor
	Year Ended December 31,
	2024				2023
	(in thousands)		Percentage (%)		(in thousands)		Percentage (%)
U.S. federal statutory tax rate	$	(270,838)	21.0	%	$	(117,305)	21.0	%
State and local income taxes, net of federal benefit (1)	(16,243)		1.3	%	(8,460)		1.5	%
Nontaxable and nondeductible items	20,751		(1.6)	%	7,215		(1.3)	%
Foreign tax effects	3,485		(0.3)	%	1,882		(0.3)	%
Changes in valuation allowance	208,035		(16.1)	%	6,787		(1.2)	%
Other	(5,398)		0.4	%	(1,250)		(0.1)	%
Total income tax expense (benefit)	$	(60,208)	4.7	%	$	(111,131)	19.6	%

(1) For the twelve months ended December 31, 2024 and 2023, respectively, state and local income taxes in California, Florida and New York City comprised greater than 50% of the tax effect in this category.

Schedule of Deferred Taxes

At December 31, 2025 and 2024, the significant components of the Company's deferred taxes consisted of the following:


	Successor		Predecessor
	December 31, 2025		December 31, 2024
	(in thousands)
Deferred tax assets:
Income tax credits	$	1,354	$	2,441


Net operating losses	452,884		437,400
Deferred revenue	22,378		22,641

Nondeductible accruals	21,772		29,936
Deferred manufacturing credits	—		13,415
Reorganization expenses	29,388		5,054
Accrued lease return conditions	107,138		9,461



Loan liability	77,663		140,313
Operating lease liability	830,455		1,053,684

Interest expense	103,207		70,011
Other	6,817		2,981
Valuation allowance	(813,726)		(226,389)
Deferred tax assets	$	839,330	$	1,560,948
Deferred tax liabilities:





Property, plant and equipment	412,801		513,028


Accrued aircraft and engine maintenance	20,225		54,574
Right-of-use asset	452,327		1,042,099
Other	13,415		3,174
Deferred tax liabilities	898,768		1,612,875
Net deferred tax assets (liabilities)	$	(59,438)	$	(51,927)