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Financial Derivative Instruments and Risk Management | 6 Months Ended
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Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Financial Derivative Instruments and Risk Management | Financial Derivative Instruments and Risk Management The Company may be exposed to interest rate risk through aircraft and spare engine lease contracts for the time period between agreement of terms and commencement of the lease, when portions of rental payments can be adjusted and become fixed based on the swap rate. As part of its risk management program, from time to time the Company enters into contracts in order to limit the exposure to fluctuations in interest rates. During each of the three and six months ended June 30, 2024 and 2023, the Company did not enter into any swaps and, therefore, paid no upfront premiums for options. As of June 30, 2024, the Company had no interest rate hedges outstanding. Assets associated with the Company’s derivative instruments are presented on a gross basis and include upfront premiums paid. These assets are recorded as a component of other current assets on the Company’s condensed consolidated balance sheets. There were no assets outstanding as of June 30, 2024 and December 31, 2023, respectively. The following table summarizes the effect of interest rate derivative instruments reflected in rent expense within the Company’s condensed consolidated statements of operations (in millions):
| Three Months Ended June 30, | Six Months Ended June 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Derivatives designated as cash flow hedges |  |  |  |  |  |  |
Amortization of cash flow hedge gains (losses), net of tax | $ | — |  |  | $ | (1) |  |  | $ | — |  |  | $ | (1) |
The following table presents the net of tax impact of the overall effectiveness of derivative instruments designated as cash flow hedging instruments within the Company’s condensed consolidated statements of comprehensive income (loss) (in millions):
| Three Months Ended June 30, | Six Months Ended June 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Derivatives designated as cash flow hedges |  |  |  |  |  |  |
Amortization of cash flow hedges, net of tax | $ | — |  |  | $ | 1 |  |  | $ | — |  |  | $ | 1 |
Interest rate derivative contract gains (losses), net of tax | — |  |  | 2 |  |  | — |  |  | (5) |
Total | $ | — |  |  | $ | 3 |  |  | $ | — |  |  | $ | (4) |
As of June 30, 2024, $7 million was included in accumulated other comprehensive income (loss) related to interest rate hedging instruments that is expected to be reclassified into aircraft rent within the Company’s condensed consolidated statements of operations over the aircraft or engine lease term.

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/815/tableOfContent + Details
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