Leases

12 Months Ended

Dec. 31, 2025

The Company had 23 aircraft under finance leases and nine aircraft under operating leases as of December 31, 2025 (excluding six aircraft under operating lease which have been removed from service pending redelivery), with remaining terms through 2032. As of December 31, 2024, there were 23 aircraft under finance lease and 17 aircraft under operating lease.

Lease Costs

The components of lease costs recognized on the statements of income were as follows:


		Year Ended December 31,
(in thousands)	Classification on the Statements of Income	2025		2024		2023
Finance lease costs:
Amortization of assets	Depreciation and amortization	$	24,013	$	23,855	$	27,170
Interest on lease liabilities	Interest expense	24,505		25,994		27,502
Operating lease cost	Aircraft lease rentals; Station operations; Maintenance and repairs; Other operating expense	25,250		26,178		25,246

Variable lease cost(1)	Aircraft lease rentals; Station operations; Maintenance and repairs; Other operating expense	13,509		492		1,563
Total lease cost		$	87,277	$	76,519	$	81,481

(1) In 2025, includes estimated lease return costs which we began to accrue in second quarter 2025 for certain aircraft on operating leases related to redeliveries in 2025 and future years.

Lease position as of December 31, 2025 and December 31, 2024

The table below presents the lease-related assets and liabilities recorded on the balance sheet.


		As of December 31,
(in thousands)	Classification on the Balance Sheet	2025			2024
Assets
Operating lease assets	Operating lease right-of-use assets, net	$	63,389		$	81,218
Finance lease assets	Property and equipment, net of accumulated depreciation	403,783			427,664
Total lease assets		$	467,172		$	508,882

Liabilities
Current
Operating	Current operating lease liabilities	$	10,936		$	20,714
Finance	Current maturities of long-term debt and finance lease obligations	28,106			26,836
Noncurrent
Operating	Noncurrent operating lease liabilities	54,170			62,392
Finance	Long-term debt and finance lease obligations	374,954			403,060
Total lease liabilities		$	468,166		$	513,002

Weighted-average remaining lease term
Operating leases		7.6 years			7.2 years
Finance leases		5.1 years			6.1 years
Weighted-average discount rate
Operating leases		5.7		%	5.6		%
Finance leases		5.9		%	5.9		%

Other Information

The table below presents supplemental cash flow information related to leases during the years ended December 31, 2025, 2024 and 2023.


	Year Ended December 31,
(in thousands)	2025		2024		2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	24,545	$	26,679	$	25,774
Operating cash flows for finance leases	24,572		26,056		27,672
Financing cash flows for finance leases	26,836		25,352		39,044

Maturities of Lease Liabilities

The table below indicates the future minimum payments of lease liabilities as of December 31, 2025.


(in thousands)	Operating Leases		Finance Leases
2026	$	14,143	$	51,108
2027	12,048		51,108
2028	10,382		65,908
2029	10,447		104,396
2030	9,952		105,233
Thereafter	25,176		126,539
Total lease payments	82,148		504,292
Less imputed interest	(17,042)		(101,232)
Total lease obligations	65,106		403,060
Less current obligations	(10,936)		(28,106)
Long-term lease obligations	$	54,170	$	374,954