Quarterly report pursuant to Section 13 or 15(d)

LEASES

v3.22.1
LEASES
 3 Months Ended
Mar. 31, 2022
Leases [Abstract]  
LEASES LEASES
Leases primarily pertain to certain controlled aircraft, corporate headquarters, and operational facilities, including aircraft hangars, which are all accounted for as operating leases. We sublease the corporate headquarters and aircraft hangar at Cincinnati/Northern Kentucky International Airport from Delta.
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 were $4.4 million and $4.6 million for the three months ended March 31, 2022 and 2021, respectively.
The components of net lease cost are as follows (in thousands):
Three Months Ended March 31,
2022 2021
Operating lease costs $ 9,102  $ 7,554 
Short-term lease costs 5,293  7,048 
Total lease costs $ 14,395  $ 14,602 
Costs related to leased aircraft and operational facilities were $12.5 million and $13.0 million for the three months ended March 31, 2022 and 2021, respectively, and are included in cost of revenue in the condensed consolidated statements of operations. Costs related to leased corporate headquarters and other office space including expenses for non-lease components were $1.9 million and $1.5 million for the three months ended March 31, 2022 and 2021, respectively, and are included in general and administrative expense in the condensed consolidated statements of operations.
Supplemental cash flow information related to leases are as follows (in thousands):
Three Months Ended March 31,
2022 2021
Cash paid for amounts included in the measurement of operating lease liabilities:
Operating cash flows paid for operating leases $ 9,119  $ 7,867 
Right-of-use assets obtained in exchange for operating lease obligations $ 37,180  $ 40,093 
Supplemental balance sheet information related to leases are as follows:
March 31, 2022 December 31, 2021
Weighted-average remaining lease term (in years):
Operating leases 6.1 6.4
Weighted-average discount rate:
Operating leases 9.0  % 9.5  %
Maturities of lease liabilities, as of March 31, 2022, are as follows (in thousands):
Year ending December 31, Operating Leases
2022 $ 29,320 
2023 35,583 
2024 29,954 
2025 17,329 
2026 11,323 
Thereafter 42,580 
Total lease payments 166,089 
Less: Imputed interest (42,087)
Total lease obligations $ 124,002