The Company has contractual obligations and commitments primarily with regard to management and development services, lease arrangements and financing arrangements.

On April 29, 2024, the Company entered into a lease agreement for one A321 passenger aircraft. The approximately one-year lease commenced on January 31, 2025. Under the agreement, the Company will pay the lessor a fixed monthly rent for 22 months, plus supplemental rent for maintenance of the aircraft.

On June 6, 2025, the Company signed a lease agreement for one A319 passenger aircraft and paid commitment fees to the lessor. The lease will commence upon aircraft delivery which is expected to be in 2026 and will run through 39 months from the delivery date. In addition to basic rent due, the Company will pay the lessor supplemental rent for maintenance of the aircraft.

On August 15, 2025, the Company signed a lease agreement for one V2527-A5 aircraft engine. The two-year lease commenced on October 8, 2025. Under the lease agreement, the Company will pay the lessor a fixed monthly rent for 24 months, plus supplemental rent for maintenance of the aircraft engine.

On August 15, 2025, the Company entered into a lease agreement for one A320 passenger aircraft airframe. The three-year lease commenced on August 28, 2025. Under the lease agreement, the Company will pay the lessor a fixed monthly rent for 36 months. According to the lease terms, at the end of the lease the Company will own the airframe.

On June 6, 2025, the Company entered into a lease agreement for one A319 passenger aircraft. The approximately two-year lease commenced on October 24, 2025. Under the lease agreement, the Company will pay the lessor a fixed monthly rent for 25 months, plus supplemental rent for maintenance of the aircraft.

On June 6, 2025, the Company entered into a lease agreement for one A319 passenger aircraft. The approximately three-year lease commenced on March 6, 2026. Under the lease agreement, the Company will pay the lessor a fixed monthly rent for 33 months, plus supplemental rent for maintenance of the aircraft.

On June 6, 2025, the Company entered into a lease agreement for one A319 passenger aircraft. The approximately three-year lease commenced on March 18, 2026. Under the lease agreement, the Company will pay the lessor a fixed monthly rent for 34 months, plus supplemental rent for maintenance of the aircraft.

The Company reviewed the operating leases for extension options that may be reasonably certain to be exercised and then would become part of the right-of-use assets and lease liabilities. On December 21, 2022, and October 10, 2023, the Company executed extensions for two aircraft, extending their lease terms by 60 and 15 months, respectively. The first extension changed the original expiration date from June 1, 2023, to May 31, 2028, and the second changed the original expiration date from October 1, 2023, to December 31, 2024. On March 27, 2024, the Company signed an additional extension for 74 months, moving the previously extended expiration date of December 31, 2024 to February 28, 2031. The terms of these extensions granted the Company the right to use the assets for the additional periods with no changes to basic rent. Accordingly, each extension was accounted for as a lease modification under ASC 842, rather than as a new contract, and the Company remeasured the right-of-use asset, lease liability, discount rate, lease term, and lease classification as of each modification date.

On August 1, 2024, the Company signed a new lease extending one A320 passenger aircraft for an additional 93 months from the original expiration date of November 15, 2023 to April 30, 2032. The terms of the extension include contingencies relating to the lessor’s timely delivery of engine repairs and incremental increases in monthly basic rent over the lease term. As these terms differed materially from the original lease, the extension was accounted for as a new lease under ASC 842, and the Company recorded a new right-of-use asset and lease liability as of the lease commencement date. On December 11, 2025, the Company signed an amendment to extend one aircraft lease term for an additional four years. The terms of the extension included incremental increases in monthly basic rent over

the lease term. This extension was accounted for as a new finance lease, reclassified from an operating lease, under ASC 842, and the Company recorded a new right-of-use asset and lease liability as of the lease commencement date.

The following table provides details of the Company's future minimum lease payments under finance lease liabilities and operating lease liabilities recorded in thousands on the Company's condensed consolidated balance sheet as of March 31, 2026. The table does not include commitments that are contingent on events or other factors that are currently uncertain or unknown.


	Finance Leases		Operating Leases
Remainder of 2026	$	14,390	$	17,492
2027		17,723		21,392
2028		14,827		16,232
2029		10,708		13,820
2030		8,812		11,958
2031 and thereafter		7,696		18,634
Total minimum lease payments		74,156		99,528
Less amount representing interest		19,037		29,385
Present value of minimum lease payments		55,119		70,143
Less current portion		12,303		14,423
Long-term portion	$	42,816	$	55,720

The table below presents information for lease costs related to the Company's finance and operating leases (in thousands):


	For The Three Months Ended March 31,
	2026		2025
Finance lease cost
Amortization of leased assets	$	2,962	$	1,413
Interest of lease liabilities		1,719		1,086
Operating lease cost
Operating lease cost (1)		3,368		3,844
Short-term lease cost (2)		378		498
Total lease cost	$	8,427	$	6,841

(1) Expenses are classified within Aircraft Rent on the Company's condensed consolidated statements of operations.

(2) Expenses are classified within Other on the Company's condensed consolidated statements of operations.

The Company utilizes the rate implicit in the lease whenever it is easily determined. For leases where the implicit rate is not readily available, we utilize our incremental borrowing rate as the discount rate. The table below presents lease terms and discount rates related to the Company's finance and operating leases:


	March 31, 2026			March 31, 2025
Weighted-average remaining lease term
Operating leases	5.27 years			5.77 years
Finance leases	4.63 years			5.66 years
Weighted-average discount rate
Operating leases		14.05	%		13.98	%
Finance leases		13.87	%		14.78	%

The table below presents cash and non-cash activities associated with our leases (in thousands):


	For The Three Months Ended March 31,
	2026		2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,494	$	4,124
Financing cash flows from finance leases	$	2,657	$	1,067

The Company is subject to various legal proceedings in the normal course of business and records legal costs as incurred. Management believes these proceedings will not have a materially adverse effect on the Company.