Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Taxes

Schedule of components of provision (benefit) for income taxes

The provision for income taxes includes the following components (in thousands):

	Year ended December 31,
	2023		2022		2021
Current tax provision (benefit):
Federal	$	4,962	$	(7,319)	$	—
State		1,794		1,813		846
		6,756		(5,506)		846
Deferred tax provision (benefit):
Federal		(678)		21,587		32,510
State		(111)		3,549		5,344
		(789)		25,136		37,854
Provision for income taxes	$	5,967	$	19,630	$	38,700

Schedule of income tax rate reconciliation

	Year ended December 31,
	2023		2022		2021
Current tax provision (benefit):
Federal	$	4,962	$	(7,319)	$	—
State		1,794		1,813		846
		6,756		(5,506)		846
Deferred tax provision (benefit):
Federal		(678)		21,587		32,510
State		(111)		3,549		5,344
		(789)		25,136		37,854
Provision for income taxes	$	5,967	$	19,630	$	38,700

Schedule of components of the net deferred tax assets and liabilities

The significant components of the Company’s net deferred tax assets and liabilities as of December 31, 2023 and 2022, are as follows (in thousands):

	As of December 31,
	2023		2022
Deferred tax assets:
Accrued benefits	$	28,889	$	29,154
Net operating loss carryforward		130,478		186,517
Aircraft credits		93,189		77,962
Deferred revenue		91,809		35,385
Operating lease liabilities		21,207		39,209
Interest deduction limitation		11,563		26,469
Accrued reserves and other		64,971		49,972
Total deferred tax assets		442,106		444,668
Valuation allowance		(630)		(1,716)
Deferred tax liabilities:
Accelerated depreciation		(1,108,042)		(1,094,538)
Operating lease right-of-use assets		(21,034)		(35,474)
Total deferred tax liabilities		(1,129,076)		(1,130,012)
Net deferred tax liability	$	(687,600)	$	(687,060)

Schedule of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the year ended December 31, 2023, 2022, and 2021 is as follows (in thousands):

	Year ended December 31,
	2023		2022		2021
Unrecognized tax benefits at the beginning of year	$	8,210	$	15,529	$	14,980
Gross increases - current year tax positions		—		—		—
Gross increases - prior year tax positions		191		343		549
Gross decreases - prior year tax positions		(7,747)		(7,662)		—
Unrecognized tax benefits at end of year	$	654	$	8,210	$	15,529
Interest and penalties in year-end balance	$	—	$	607	$	976