LEASES

6 Months Ended

Jun. 30, 2024

Leases primarily pertain to certain controlled aircraft and our operational facilities, including aircraft hangars, our corporate headquarters located in the Atlanta, Georgia area and our corporate office in New York, New York, which are all accounted for as operating leases. We sublease an aircraft hangar at Cincinnati/Northern Kentucky International Airport from Delta. Certain of these operating leases have renewal options to further extend for additional time periods at our discretion.

We have certain variable lease agreements with aircraft owners that contain payment terms based on an hourly lease rate multiplied by the number of flight hours during a month. Variable lease payments are not included in the right-of-use asset and lease liability balances but rather are expensed as incurred.

The components of net lease cost were as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Operating lease costs	$	7,509	$	9,641	$	15,049	$	21,335
Short-term lease costs	173		2,151		386		4,637
Variable lease costs	5,826		8,666		10,139		14,499
Total lease costs	$	13,508	$	20,458	$	25,574	$	40,471

Sublease income was not material for any of the three and six month periods ended June 30, 2024 and 2023.

Lease costs related to leased aircraft and operational facilities are included in Cost of revenue in the condensed consolidated statements of operations. Lease costs related to our leased corporate headquarters and other office space, including expenses for non-lease components, are allocated within the condensed consolidated statements of operations based on employee headcount. Sublease income is presented in General and administrative expense in the condensed consolidated statements of operations.

Supplemental cash flow information related to operating leases were as follows (in thousands):


	Six Months Ended June 30,
	2024		2023
Cash paid for amounts included in the measurement of operating lease liabilities:
Operating cash flows paid for operating leases	$	15,604	$	18,621
Right-of-use assets obtained in exchange for operating lease obligations	$	3,017	$	5,454

Supplemental balance sheet information related to leases were as follows:


	June 30, 2024		December 31, 2023
Weighted-average remaining lease term (in years):
Operating leases	6.9		6.7
Weighted-average discount rate:
Operating leases	9.4	%	9.2	%

Maturities of lease liabilities, as of June 30, 2024, were as follows (in thousands):


Year ending December 31,	Operating Leases
2024 (remaining)	$	14,409
2025	18,573
2026	11,107
2027	8,022
2028	6,803
2029 and Thereafter	36,609
Total lease payments	95,523
Less: Imputed interest	(26,812)
Total lease obligations	$	68,711