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Leases
 12 Months Ended
Dec. 31, 2025
Disclosure of quantitative information about leases for lessee [abstract]  
Leases
14. Leases
The Company as a lessee
The Company leases some aircraft under long-term lease agreements with an average duration of 16 years. Aircraft under operating leases may be renewed in accordance with management’s business plan.
Other leased assets include real estate, airport and terminal facilities, sales offices, maintenance facilities, and general offices. Most lease agreements include renewal options; a few have escalation clauses, but no purchase options.
Information about leases for which the Company is a lessee is presented below:
Right of use assets
Aircraft
Real estate
Total
Balance at January 1, 2023$210,786 $23,594 $234,380 
Additions120,747 1,960 122,707 
Depreciation expense(70,622)(5,319)(75,941)
Balance at December 31, 2023$260,911 $20,235 $281,146 
Additions98,603 18,300 116,903 
Derecognition(20,271)— (20,271)
Depreciation expense(62,327)(6,148)(68,475)
Balance at December 31, 2024$276,916 $32,387 $309,303 
Additions41,760 11,581 53,341 
Depreciation expense(59,437)(6,446)(65,883)
Balance at December 31, 2025$259,239 $37,522 $296,761 
   
Additions to the right-of-use assets include new leases, contract extensions, changes in discount rate and changes in rental payments. During 2025, the Company entered into a new lease transaction with a third party, for one Boeing 737-800 BCF converted freighter.
During 2024, right-of-use of aircraft include the non-cash derecognition of $20.3 million, due the purchase from lessors of 4 Boeing 737-800 NG aircraft. These aircraft were capitalized in the consolidated statement of financial position at their acquisition cost within "Property and equipment".
During 2023, the Company entered into a lease transaction with third parties, for 1 new Boeing 737 MAX 9 aircraft.
Lease liabilities
20252024
Current portion of lease liability
Aircraft$60,101 $54,134 
Real estate6,031 4,969 
$66,132 $59,103 
Long-term lease liability  
Aircraft$222,113 $239,193 
Real estate36,270 31,401 
$258,383 $270,594 
$324,515 $329,697 
For leases under IFRS 16 the Company recognizes a provision to estimate the costs for work required to be performed just before the redelivery of the aircraft to the lessors and which does not depend on the aircraft utilization. This provision is booked as a dismantling provision cost under “long term liabilities” in the consolidated statement of financial position. As of December 31, 2025 the total liability related to leases including the provision of dismantling amounts to $347.1 million (2024: $351.9 million).
The Company had total cash outflows for leases of $76.1 million the year ended as December 31, 2025 (2024: $77.1 million).
As of December 31, 2025 the average incremental borrowing rate of leased aircraft is 5.2% (2024: 5.2%).
The maturity analysis of lease liabilities is disclosed in Note 28.5.
Amounts recognized in the consolidated statement of profit or loss related to leases:
202520242023
Depreciation and amortization
Depreciation expense of right of use assets$65,883 $68,475 $75,941 
Other operating and administrative expenses
Short-term leases$9,713 $6,681 $12,310 
Leases of low-value assets351 369 425 
Variable lease payments not include in the measurement of lease liabilities851 3,225 2,895 
$10,915 $10,275 $15,630 
Finance cost
Interest expense on lease liability$16,972 $16,366 $12,173 
Unwinding of discount and changes in the discount rate1,154 (2,501)1,106 
$18,126 $13,865 $13,279 
$94,924 $92,615 $104,850 
Some property leases contain variable payment terms that are linked to the number of passengers or employees using the areas. Additionally, some aircraft leases contain variable payment terms that depend on the aircraft’s flight hours.
The unwinding of discount and changes in the discount rate over leased aircraft correspond to the interest expenses of the discounted dismantling provision.
As of December 31, 2024, unwinding of discount and changes in discount rate includes $4.2 million representing the unused portion of the dismantling provision related to the purchase of 4 leased Boeing 737-800 aircraft.