Cover
Cover | 3 Months Ended |
Mar. 31, 2023 shares | |
Document Information [Line Items] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Quarterly Report | true |
Document Transition Report | false |
Document Period End Date | Mar. 31, 2023 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q1 |
Entity Registrant Name | HARBOR DIVERSIFIED, INC. |
Entity Central Index Key | 0000899394 |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Interactive Data Current | Yes |
Entity Small Business | true |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Entity File Number | 001-34584 |
Entity Incorporation State Country Code | DE |
Entity Tax Identification Number | 13-3697002 |
Entity Address Address Line1 | W6390 Challenger Drive |
Entity Address Address Line2 | Suite 203 |
Entity Address City Or Town | Appleton |
Entity Address Postal Zip Code | 54914-9120 |
Entity Address State Or Province | WI |
City Area Code | 920 |
Local Phone Number | 749-4188 |
Entity Common Stock, Shares Outstanding | 44,749,986 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current Assets | ||
Cash and cash equivalents | $ 22,509 | $ 33,333 |
Restricted cash | 671 | 849 |
Marketable securities | 156,305 | 153,827 |
Accounts receivable, net | 41,147 | 40,341 |
Notes receivable | 21,093 | 19,452 |
Spare parts and supplies, net | 4,978 | 4,579 |
Contract costs | 161 | 143 |
Prepaid expenses and other | 3,512 | 3,732 |
Total Current Assets | 250,376 | 256,256 |
Property and Equipment | ||
Flight property and equipment | 265,285 | 263,970 |
Ground property and equipment | 8,240 | 8,055 |
Less accumulated depreciation and amortization | (176,474) | (169,766) |
Net Property and Equipment | 97,051 | 102,259 |
Other Assets | ||
Operating lease right-of-use asset | 12,153 | 13,480 |
Intangibles | 5,300 | 5,300 |
Long-term investments | 4,275 | 4,275 |
Long-term contract costs | 751 | 0 |
Other | 1,126 | 1,077 |
Total Other Assets | 23,605 | 24,132 |
Total Assets | 371,032 | 382,647 |
Current Liabilities | ||
Accounts payable | 20,950 | 20,165 |
Accrued payroll and employee benefits | 14,216 | 12,989 |
Current portion of operating lease liability | 5,125 | 5,091 |
Other accrued expenses | 193 | 137 |
Contract liabilities | 1,120 | 1,985 |
Deferred revenues | 5,841 | 16,561 |
Current portion of long-term debt (stated principal amount of $7,000 at March 31, 2023 and December 31, 2022) | 9,084 | 9,154 |
Total Current Liabilities | 56,529 | 66,082 |
Other Long-Term Liabilities | ||
Long-term debt (stated principal amount of $48,600 at March 31, 2023 and December 31, 2022) | 51,582 | 52,068 |
Long-term promissory note | 4,275 | 4,275 |
Deferred tax liability | 7,990 | 7,990 |
Long-term operating lease liability | 4,543 | 5,849 |
Long-term contract liabilities | 398 | 0 |
Other | 1,659 | 1,977 |
Total Long-Term Liabilities | 70,447 | 72,159 |
Commitments and Contingencies (Note 8) | ||
Mezzanine Equity (Note 10) | ||
Series C Convertible Redeemable Preferred Stock, $0.01 par value, 4,000,000 shares authorized, issued and outstanding at March 31, 2023 and December 31, 2022 | 13,200 | 13,200 |
Stockholders' Equity | ||
Common Stock, $0.01 par value, 100,000,000 shares authorized, 55,481,140 shares issued at March 31, 2023 and December 31, 2022, 44,749,986 shares outstanding at March 31, 2023 and 45,219,737 shares outstanding at December 31, 2022 | 555 | 555 |
Additional paid-in capital | 285,416 | 285,668 |
Retained deficit | (39,152) | (40,034) |
Treasury stock | (15,963) | (14,983) |
Total Stockholders' Equity | 230,856 | 231,206 |
Total Liabilities and Stockholders' Equity | $ 371,032 | $ 382,647 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current portion of long-term debt principal amount | $ 7,000 | $ 7,000 |
Non-current portion of long term debt principal amount | $ 48,600 | $ 48,600 |
Common stock par value | $ 0.01 | $ 0.01 |
Common stock share authorized | 100,000,000 | 100,000,000 |
Common stock share issued | 55,481,140 | 55,481,140 |
Common stock share outstanding | 44,749,986 | 45,219,737 |
Series C Redeemable Convertible Preferred Stock [Member] | ||
Temporary equity par value | $ 0.01 | $ 0.01 |
Temporary equity shares authorized | 4,000,000 | 4,000,000 |
Temporary equity shares issued | 4,000,000 | 4,000,000 |
Temporary equity shares outstanding | 4,000,000 | 4,000,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating Revenues | ||
Total Operating Revenues | $ 59,132 | $ 66,975 |
Operating Expenses | ||
Payroll and related costs | 29,768 | 26,601 |
Aircraft fuel and oil | 102 | 51 |
Aircraft maintenance, materials and repairs | 19,349 | 14,501 |
Other rents | 1,594 | 1,613 |
Depreciation, amortization and obsolescence | 6,357 | 6,644 |
Purchased services and other | 4,442 | 3,765 |
Total Operating Expenses | 61,612 | 53,175 |
(Loss) Income from Operations | (2,480) | 13,800 |
Other Income (Expense) | ||
Interest income | 1,366 | 784 |
Interest expense | (1) | 0 |
Gain (Loss) on marketable securities | 1,740 | (2,423) |
Other, net | (13) | 0 |
Total Other Income (Expense) | 3,092 | (1,639) |
Net Income Before Taxes | 612 | 12,161 |
Income Tax (Benefit) Expense | (270) | 2,898 |
Net Income | 882 | 9,263 |
Preferred stock dividends | 252 | 198 |
Net income available to common stockholders | $ 630 | $ 9,065 |
Basic Earnings per share | $ 0.01 | $ 0.19 |
Diluted Earnings per share | $ 0.01 | $ 0.14 |
Weighted average common shares: | ||
Basic | 44,980 | 47,638 |
Diluted | 61,480 | 64,535 |
Contract Revenues [Member] | ||
Operating Revenues | ||
Total Operating Revenues | $ 59,037 | $ 66,968 |
Contract Service and Other [Member] | ||
Operating Revenues | ||
Total Operating Revenues | $ 95 | $ 7 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Repurchased Stock [Member] | Preferred Stock [Member] Mezzanine Equity Series C Convertible Redeemable Preferred Stock [Member] |
Beginning Balance at Dec. 31, 2021 | $ 205,560 | $ 555 | $ 287,429 | $ (79,144) | $ (3,280) | $ 13,200 | |
Beginning balance, Shares at Dec. 31, 2021 | 53,316 | 2,165 | 4,000 | ||||
Net income | 9,263 | 9,263 | |||||
Preferred stock dividends | (198) | (198) | |||||
Cancellation of stock option | (969) | (969) | |||||
Treasury stock purchases, Shares | (6,262) | 6,262 | |||||
Treasury stock purchases, Value | (7,482) | (7,482) | |||||
Ending Balance at Mar. 31, 2022 | 206,174 | $ 555 | 286,262 | (69,881) | (10,762) | $ 13,200 | |
Ending balance, shares at Mar. 31, 2022 | 47,054 | 8,427 | 4,000 | ||||
Beginning Balance at Dec. 31, 2022 | 231,206 | $ 555 | 285,668 | (40,034) | (14,983) | $ 13,200 | |
Beginning balance, Shares at Dec. 31, 2022 | 45,220 | 10,261 | 4,000 | ||||
Net income | 882 | 882 | |||||
Preferred stock dividends | (252) | (252) | |||||
Treasury stock purchases, Shares | (470) | 470 | |||||
Treasury stock purchases, Value | (980) | (980) | |||||
Ending Balance at Mar. 31, 2023 | $ 230,856 | $ 555 | $ 285,416 | $ (39,152) | $ (15,963) | $ 13,200 | |
Ending balance, shares at Mar. 31, 2023 | 44,750 | 10,731 | 4,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash Flows from Operating Activities | ||
Net income | $ 882 | $ 9,263 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization and obsolescence allowance | 6,357 | 6,644 |
Amortization of contract costs | (936) | (1,066) |
Amortization of engine overhauls | 676 | 616 |
Deferred income taxes | 0 | (118) |
Loss (gain) on disposition of property and equipment | 92 | (2) |
(Gain) loss on marketable securities | (1,740) | 2,423 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (807) | (8,258) |
Notes Receivable | (1,641) | (3,510) |
Spare parts and supplies | (399) | (229) |
Prepaid expenses and other | (698) | 4,523 |
Operating lease right-of-use asset | 55 | 19 |
Accounts payable | 784 | (4,263) |
Accrued payroll and employee benefits | 1,227 | (2,401) |
Other accrued expenses | 56 | 56 |
Long-term deferred revenue | 0 | (9,046) |
Contract liabilities | 469 | (1,441) |
Deferred revenues | (10,720) | 4,310 |
Income taxes payable | 0 | 751 |
Other long-term liabilities | (318) | (59) |
Net Cash Used in Operating Activities | (6,661) | (1,788) |
Cash Flows From Investing Activities | ||
Additions to property and equipment | (1,817) | (1,210) |
Proceeds on disposition of property and equipment | 2 | 3 |
Purchase of marketable securities | (738) | (231) |
Net Cash Used in Investing Activities | (2,553) | (1,438) |
Cash Flows From Financing Activities | ||
Repayments of long-term debt | (556) | (595) |
Dividends paid on preferred stock | (252) | (198) |
Cancellation of stock option | 0 | (969) |
Repurchased stock | (980) | (7,482) |
Net Cash Used in Financing Activities | (1,788) | (9,244) |
Decrease in Cash, Cash Equivalents and Restricted Cash | (11,002) | (12,470) |
Cash, Cash Equivalents and Restricted Cash, beginning of period | 34,182 | 38,619 |
Cash, Cash Equivalents and Restricted Cash, end of period | $ 23,180 | $ 26,149 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) and include the accounts of Harbor Diversified, Inc. (Harbor) and its subsidiaries (collectively, the Company). Harbor is a non-operating holding company is a non-operating entity with The consolidated financial statements have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the following disclosures are adequate to make the information presented not misleading. The consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary to present fairly in all material respects the financial condition and results of operations for the interim periods presented. All adjustments are of a normal recurring nature, unless otherwise disclosed. All of the dollar and share amounts set forth in these condensed notes to consolidated financial statements are presented in thousands except per share and par value amounts. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in Harbor’s Annual Report on Form 10-K Description of Operations The Company has principal lines of business focused on (1) providing regional air services through Air Wisconsin (airline business), (2) acquiring flight equipment for the purpose of leasing the equipment to Air Wisconsin, and (3) providing flight equipment financing to Air Wisconsin. Additionally, Air Wisconsin is continuing to explore aircraft leasing opportunities and entered into its first short-term aircraft lease in September 2022. The airline business is operated entirely through Air Wisconsin, which is an independent regional air carrier. For the three months ended March 31, 2023, Air Wisconsin was engaged in the business of providing scheduled passenger service for United Airlines, Inc. (United) under a capacity purchase agreement (United capacity purchase agreement) that was entered into in February 2017. Air Wisconsin will cease flying for United in early June 2023. Since March 1, 2023, Air Wisconsin has also provided scheduled passenger service for American Airlines, Inc. (American) under a capacity purchase agreement (American capacity purchase agreement), pursuant to which Air Wisconsin has agreed to provide up to 60 CRJ-200 For additional information, refer to Note 3, Capacity Purchase Agreements with United and American Contract Revenues For the three months ended March 31, 2023, approximately 95.2% of the Company’s operating revenues were derived from operations associated with the United capacity purchase agreement and approximately 4.7% of the Company’s operating revenues were derived from operations associated with the American capacity purchase agreement. In performing an analysis of the United capacity purchase agreement and the American capacity purchase agreement within the framework of Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842) Revenue from Contracts with Customers (Topic 606) the capacity purchase agreements that is designed to reimburse Air Wisconsin for use of a certain number of aircraft, which is referred to as “right of use,” is considered lease revenue. All other revenue received by Air Wisconsin under the capacity purchase agreements is considered non-lease non-lease non-lease non-lease The Company recognizes revenue under each capacity purchase agreement over time as services are provided. Under each agreement, Air Wisconsin is entitled to receive a fixed rate for each departure and block hour (measured from takeoff to landing, including taxi time), and a fixed amount per covered aircraft per day. Air Wisconsin’s performance obligation is met and revenue is recognized over time, which is then reflected in contract revenues. Each agreement also provides for the reimbursement to Air Wisconsin of certain direct operating expenses such as certain insurance premiums and property taxes. United makes provisional cash payments to Air Wisconsin during each month of service based on projected flight schedules. These provisional cash payments are subsequently reconciled with United based on actual completed flight activity. As of May 12, 2023 these payments were reconciled through October 2022. Subject to final reconciliation of the provisional cash payments for the periods after October 31, 2022, as of March 31, 2023, United owed Air Wisconsin approximately $30,499, which is recorded in accounts receivable, net, on the consolidated balance sheets. United is disputing that it owes $30,148 of this amount. For additional information, refer to Note 3, Capacity Purchase Agreements with United and American Commitments and Contingencies American makes provisional cash payments to Air Wisconsin during each month of service based on projected flight schedules. These provisional cash payments are subsequently reconciled with American based on actual completed flight activity. As of the date of this filing, the payments for March 2023, the first month of Air Wisconsin’s flight operations for American, have been reconciled. Subject to final reconciliation of the provisional cash payments for the March 2023 flight activity, American owed Air Wisconsin approximately $1,446, which is recorded in accounts receivable, net, on the consolidated balance sheets. Under the United capacity purchase agreement, Air Wisconsin is eligible to receive incentive payments, or may be required to pay penalties, upon the achievement of, or failure to achieve, certain performance criteria primarily based on flight completion, on-time of Under the American capacity purchase agreement, Air Wisconsin is eligible to receive bonus payments, or may be required to pay rebates, upon the achievement of, or failure to achieve, certain performance criteria primarily based on flight completion, on-time Under the United capacity purchase agreement, Air Wisconsin is entitled to receive a fixed amount per aircraft per day for each month during the term of the agreement. In accordance with GAAP, the Company recognizes revenue related to the fixed payments on a proportional basis taking into account the number of flights actually completed in that period relative to the number of flights expected to be completed in subsequent periods during the remaining term of the agreement. Air Wisconsin deferred fixed revenues between April 2020 and June 2021 due to the significant decrease in its completed flights as a result of the COVID-19 Liquidity Under the United capacity purchase agreement, consistent with the discussion above, for the three months ended March 31, 2023, as compared to the three months ended March 31, 2022, Air Wisconsin also recognized increased non-refundable Under the American capacity purchase agreement, Air Wisconsin is entitled to receive a fixed amount per aircraft per day for each month during the term of the agreement based on a formula which takes into account pilot availability for any given month. Because this revenue relates to the specific flight activity for the month in which the flights occur, Air Wisconsin will recognize this revenue on a monthly basis. Under the American capacity purchase agreement, Air Wisconsin is al so (non-refundable non-refundable non-refundable non-refundable non-refundable non-refundable non-refundable As noted above, Air Wisconsin incurred certain startup costs (fulfillment costs) prior to the start of flying operations for American on March 1, 2023. These costs included changes to the livery, fuel costs, and certain training expenses. The total fulfillment costs incurred were $870. These costs will be amortized on a proportional basis taking into account the number of flights actually completed in the period relative to the number of flights expected to be completed in subsequent periods during the remaining term of the agreement. For the three months ending March 31, 2023 and March 31, 2022, Air Wisconsin recorded $2 and $0, respectively of amortization expense related to fulfillment costs. As of March 31, 2023, fulfillment costs of $117 are recorded as part of short-term contract costs, and $751 as part of long-term contract costs on the consolidated balance sheets. Under the American capacity purchase agreement, Air Wisconsin will also receive a monthly support fee and be reimbursed for heavy maintenance expenses based on the fixed covered per aircraft per day rate over the term of the agreement. In addition, Amendment No. 1 to the American capacity purchase agreement provided for a one-time one-time one-time assistance to these items which is netted against short-term contract liabilities on the consolidated balance sheets. Air Wisconsin’s contract liabilities related to the one-time remai ning te r As part of the October 2020 amendment to the United capacity purchase agreement (CPA Amendment), United made a cash settlement payment of $670 and issued a note receivable to Air Wisconsin in the amount of $11,048, of which $4,410 was deferred as of December 31, 2020, with the remaining portion to be recognized in proportion to the number of flights expected to be completed in subsequent periods through the end of the wind-down period. In October 2021, in accordance with the CPA Amendment, Air Wisconsin received $294 from United for the opening of a crew base, of which $73 was deferred as of December 31, 2021, with the remaining portion to be recognized in proportion to the number of flights expected to be completed in subsequent periods through the end of the wind-down period. For the three months March 31, 2023, Air Wisconsin recorded $450 of revenue related to these items, compared to $519 of revenue related to these items for the three months ended March 31, 2022. As of March 31, 2023, deferred CPA Amendment revenue in the amount of $199 is recorded as part of contract liabilities on the consolidated balance sheets. The timing of the recognition under the United capacity purchase agreement of deferred fixed revenue, non-refundable non-refundable one-time The CPA Amendment provided, among other things, for the payment or accrual of certain amounts by United to Air Wisconsin based on certain scheduling benchmarks. In conjunction with the significant reduction in departures and block hours resulting from the COVID-19 from of Commitments and Contingencies Other Revenues Other revenues primarily consist of the sales of parts to other airlines and aircraft lease payments. These other revenues are immaterial in all periods presented. The transaction price for these other revenues generally is fair market value. Cash and Cash Equivalents Money market funds and investments and deposits with an original maturity of three months or less when acquired are considered cash and cash equivalents. Restricted Cash As of March 31, 2023 and December 31, 2022, the Company had a restricted cash balance of $671 and $849, respectively. A portion of the balance secures a credit facility for the issuance of letters of credit guaranteeing the performance of Air Wisconsin’s obligations under certain lease agreements, airport agreements and insurance policies. The remaining portion is cash held for the repurchase of shares under Harbor’s stock repurchase program. For additional information, refer to Note 8, Commitments and Contingencies Stock Repurchase Program. Marketable Securities The Company’s equity security investments, consisting of exchange-traded funds and mutual funds, are recorded at fair value based on quoted market prices (Level 1) in marketable securities on the consolidated balance sheets, in accordance with the guidance in ASC Topic 321, Investments-Equity Securities . For additional information, refer to “ Fair Value of Financial Instruments ” in this Note 1. The calculation of net unrealized gains and losses that relate to marketable securities held as of March 31, 2023 and March 31, 2022 is as follows: Three Three Months Net gains (losses) recognized during the period on equity securities $ 1,740 $ (2,423 ) Less: Net gains recognized during the period on equity securities sold during the period — — Unrealized gains (losses) recognized during the period on equity securities held as of the end of the period $ 1,740 $ (2,423 ) Property and Equipment Property and equipment are stated at cost and depreciated over their useful lives to their estimated residual values using the straight-line method as follows: Assets Depreciable Life Current Residual Value Aircraft 7 years $ 50 Rotable parts 7 years 10 % Spare engines 7 years $ 25 Ground equipment up to 10 years 0 % Office equipment up to 10 years 0 % Leasehold improvements Shorter of asset or lease life 0 % The table below sets forth the original cost of the Company’s fixed assets and accumulated depreciation or amortization as of the dates presented: March 31, 2023 December 31, 2022 Assets Original Accumulated Original Accumulated Aircraft 70,143 42,874 70,089 40,544 Engines 164,706 108,194 163,708 103,834 Rotable parts 27,622 18,535 27,936 18,655 Ground equipment 2,736 2,113 2,718 2,063 Office equipment 4,517 4,255 4,519 4,218 Leasehold improvements 987 503 818 452 270,711 176,474 269,788 169,766 The amounts in the table exclude construction in process of $ relat es to Air Wisconsin’s capitalized engine maintenance costs are amortized over their estimated useful life measured in remaining engine cycles to the next scheduled shop visit. Lotus’ engine maintenance costs are expensed. Depreciation expense in the three months ended March 31, 2023 and March 31, 2022 was $6,256 and $6,315, respectively, and is included in depreciation, amortization, and obsolescence in the accompanying consolidated statements of operations. Impairment of Long-Lived Assets and Indefinite-Lived Intangible Assets The Company evaluates long-lived assets and indefinite-lived intangible assets for potential impairment and records impairment losses when events and circumstances indicate the assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than their carrying amounts. Impairment losses are measured by comparing the fair value of the assets to their carrying amounts. In determining the need to record impairment charges, the Company is required to make certain estimates and assumptions regarding such things as the current fair market value of the assets and future net cash flows to be generated by the assets. If there are subsequent changes to these estimates or assumptions, or if actual results differ from these estimates or assumptions, such changes could impact the financial statements in the future. The Company conducted a qualitative impairment assessment of its long-lived assets and indefinite-lived intangible assets and determined that no quantitative impairment tests were required to be performed as of March 31, 2023 and March 31, 2022. Income Taxes The Company utilizes the asset and liability method for accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based upon the estimated future tax effects of differences between the financial statement and tax basis of assets and liabilities, as measured by the current applicable tax rates. Deferred tax expense represents the result of changes in deferred tax assets and liabilities. As required by the uncertain tax position guidance, the Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more-likely-than-not more-likely-than-not The Company is subject to federal, state and local income taxes in the United States. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require the application of significant judgment. The Company is no longer subject to U.S. federal income tax examinations for the years prior to 2019. With a few exceptions, the Company is no longer subject to state or local income tax examinations for years prior to 2018. As of March 31, 2023, the Company had no outstanding tax examinations. Concentration of Credit Risk and Customer Risk Financial instruments that potentially expose the Company to a concentration of credit risk consist principally of cash and cash equivalents that are held by financial institutions in the United States and accounts receivable. The Company at times has had bank deposits in excess of the Federal Deposit Insurance Corporation (FDIC) insurance limit. The Company maintains its cash accounts with high credit quality financial institutions and, accordingly, the Company believes it has Significant customers are those which represent more than 10% of the Company’s total revenue or net accounts receivable balance at each respective balance sheet date. Approximately 95.2% and 99.9% of the Company’s consolidated revenues for the three months ended March 31, 2023, and March 31, 2022, respectively, and a substantial portion of accounts receivable and notes receivable at the end of such three month periods were derived from the United capacity purchase agreement. Air Wisconsin entered into the American capacity purchase agreement in August 2022 and commenced flying operations for American in March 2023. American will become Air Wisconsin’s sole airline partner once all aircraft are removed from United’s flying operations. At that point, substantially all of the Company’s revenues will be derived from the American capacity purchase agreement. Neither United’s nor American’s obligations to pay Air Wisconsin the amounts required to be paid under the applicable capacity purchase agreement are collateralized. For additional information, refer to Note 3, Capacity Purchase Agreements with United and American Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Fair Value of Financial Instruments The Company’s financial instruments include cash and cash equivalents, restricted cash, marketable securities, accounts receivable, long-term investments, accounts payable, and long-term debt. The Company believes the carrying amounts of these financial instruments, with the exception of marketable securities, are a reasonable estimate of their fair value because of the short-term nature of such instruments, or, in the case of long-term debt, because of fixed interest rates on such debt. Marketable securities are reported at fair value based on quoted market prices. Long-term investments are held-to-maturity Fair value is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date (that is, an exit price). Fair Value Measurement Level 1 - Quoted market prices in active markets for identical assets or liabilities. Level 2 - Inputs other than Level 1 inputs that are either directly or indirectly observable. Level 3 - Unobservable inputs developed using the Company’s estimates and assumptions, which reflect those that market participants would use. The determination of where an asset or liability falls in the hierarchy requires significant judgment. The Company evaluates these determinations each reporting period, and it is possible that an asset or liability may be classified differently from year to year. The tables below set forth the Company’s classification of marketable securities and long-term investments as of the dates presented: March 31, 2023 Total Level 1 Level 2 Level 3 Marketable securities – exchange-traded funds $ 111,024 $ 111,024 $ — $ — Marketable securities – mutual funds 45,281 45,281 — — Long-term investments – bonds (see Note 6) 4,275 — 4,275 — Total $ 160,580 $ 156,305 $ 4,275 $ — March 31, 2022 Total Level 1 Level 2 Level 3 Marketable securities – exchange-traded funds $ 111,851 $ 111,851 $ — $ — Marketable securities – mutual funds 24,327 24,327 — — Long-term investments – bonds (see Note 6) 4,275 — 4,275 — Total $ 140,453 $ 136,178 $ 4,275 $ — Reclassification Certain non-operating Recently Adopted Accounting Pronouncement On January 1, 2023 the Company adopted ASU 2016-13, Financial Instruments-Credit Losses 2016-13). 2016-13 |
Liquidity
Liquidity | 3 Months Ended |
Mar. 31, 2023 | |
Text Block [Abstract] | |
Liquidity and Management's Plan, COVID-19 | 2. Liquidity The Company’s ability to meet its liquidity needs is dependent upon its cash, cash equivalents and marketable securities balances and its ability to generate cash flows from operations in the future in amounts sufficient to meet its obligations and repay its liabilities arising from normal business operations when they come due. The Company currently believes its available working capital and anticipated cash flows from operations will be sufficient to meet the Company’s liquidity requirements for at least the next 12 months from the date of this filing. However, there can be no assurance that the Company will be able to generate sufficient cash flows from operations, or that additional funds will be available, to meet its future liquidity needs, particularly if United fails to pay disputed amounts owed to Air Wisconsin pursuant to the United capacity purchase agreement.. Reduced Block Hours Since the beginning of the COVID-19 pre-pandemic In addition, Air Wisconsin expects that its block hours will be temporarily reduced as a result of the transition from flying for United to flying for American. Before any Air Wisconsin aircraft can be available to operate flights for American, that aircraft must first be removed from service under the United capacity purchase agreement, painted to meet the livery requirements of the American capacity purchase agreement and otherwise modified to meet such requirements. During the period from the withdrawal of an aircraft from service under the United capacity purchase agreement until it is placed into service under the American capacity purchase agreement, that aircraft will not generate revenues from either United or American. The period of time that an aircraft will not be covered by either capacity purchase agreement depends on Air Wisconsin’s ability to induct aircraft into service for American, which is not entirely within Air Wisconsin’s control and is subject to many factors, including the painting of the aircraft (which generally takes at least two weeks), the availability of pilots to fly the aircraft, and the time it will take to cause the aircraft to meet the additional requirements set forth in the American capacity purchase agreement. For additional information, refer to Part I, Item 1, “ Business American Capacity Purchase Agreement |
Capacity Purchase Agreements wi
Capacity Purchase Agreements with United and American | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Capacity Purchase Agreements with United and American | 3. Capacity Purchase Agreements with United and American In February 2017, Air Wisconsin entered into the United capacity purchase agreement. A dispute exists under the agreement with respect to certain recurring amounts owed to Air Wisconsin by United. In October 2022, United initiated arbitration under the United capacity purchase agreement and requested a declaration that it does not owe any of the amounts claimed by Air Wisconsin. Air Wisconsin expects that, unless the parties reach a settlement before then, the arbitration hearing will occur in July 2023 and the arbitrators will issue their award in August 2023. In October 2022, United also delivered an initial wind-down schedule under the United capacity purchase agreement. In December 2022 and February 2023, Air Wisconsin sent United notices of termination of the agreement. In the arbitration, United has contested Air Wisconsin’s right to terminate the agreement and asserted a claim for wrongful termination. In accordance with the termination provisions, and in response to Air Wisconsin’s first termination notice, United delivered, in January 2023, a revised wind-down schedule. Following the delivery of that revised schedule, in February 2023, the parties agreed, in a sixth amendment to the United capacity purchase agreement, to a replacement wind-down schedule that provides for the withdrawal of aircraft from the agreement beginning in January 2023 and continuing until early June 2023, at which time all of Air Wisconsin’s remaining aircraft will be withdrawn from the agreement, and Air Wisconsin will cease flying for United. For its revenue calculations, Air Wisconsin has assumed that it will cease flying for United in early June 2023. For additional information, refer to Note 1, Summary of Significant Accounting Policies Contract Revenues Commitments and Contingencies. In August 2022, Air Wisconsin entered into the American capacity purchase agreement, pursuant to which Air Wisconsin has agreed to provide up to 60 CRJ-200 |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 4. Property and Equipment As of March 31, 2023, Air Wisconsin owned 64 CRJ-200 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 5. Income Taxes The Company’s effective tax rate for the three months ended March 31, 2023 was (44.2)%, The Company’s effective tax rate for the three months ended March 31, 2022 was 23.8%, |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | 6. Debt Long-Term Debt Long-term debt consists of the following (with interest rates, as of the dates presented): March 31, December 31, Aircraft Notes, due December 31, 2025 ( ) $ 60,666 $ 61,222 Less: current maturities 9,084 9,154 Long-term debt $ 51,582 $ 52,068 Maturities of long-term debt for the periods subsequent to March 31, 2023, are as follows: Fiscal Year Amount April 2023 through December 2023 $ 8,598 2024 8,874 2025 43,194 Total $ 60,666 The debt agreements include certain covenants. At March 31, 2023 and December 31, 2022, Air Wisconsin was in compliance with all of the covenants in its debt agreements. As of March 31, 2023, all of the Company’s long-term debt was subject to fixed interest rates. For additional information, refer to Note 6, Debt Long-Term Promissory Note In July 2003, Air Wisconsin financed a hangar through the issuance of $4,275 City of Milwaukee, Wisconsin variable rate Industrial Development Bonds. The bonds mature November 1, 2033. Prior to May 1, 2006, the bonds were secured by a guaranteed investment contract, which was collateralized with cash, and interest was payable semiannually on each May 1 and November 1. In May 2006, Air Wisconsin acquired the bonds using the cash collateral. The bonds are reported as long-term investments on the consolidated balance sheets. The hangar is accounted for as a right-of-use |
Lease Obligations
Lease Obligations | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Lease Obligations | 7. Lease Obligations The Company reviewed all contracts and service agreements in effect for the three months ended March 31, 2023 for criteria meeting the definition of a lease within the frameworks of Topic 842 and Topic 606. Those that were determined to be a lease may contain both a lease and a non-lease The Company’s operating l e right-of-use right-of-use right-of-use right-of-use Certain leases contain an option to extend or terminate the lease agreement. The Company evaluates each option prior to its expiration and may or may not exercise such option depending on conditions present at the time. At the inception of the lease, if it is reasonably certain that the Company will exercise an option to extend or terminate a lease, the Company considers the option in determining the classification and measurement of the lease. The Company expects that in the normal course of business operating leases that expire will be renewed or replaced by other leases. As of March 31, 2023, the Company’s right-of-use in operating lease payments, which are reflected as a reduction to operating cash flows. The table below presents operating lease related terms and discount rates as of: March 31, Weighted-average remaining lease term 2.81 years Weighted-average discount rate 5.74 % Components of lease costs were as follows for the three months ended as of: March 31, March 31, Operating lease costs $ 1,474 $ 1,474 Short-term lease costs 65 104 Variable lease costs 55 35 Total Lease Costs $ 1,594 $ 1,613 Certain leases are subject to non-cancellable pro-rata The following table summarizes the future minimum rental payments required under operating leases that had initial or remaining non-cancelable Fiscal Year Amount April 2023 through December 2023 $ 4,165 2024 3,222 2025 2,487 2026 171 Fiscal Year Amount 2027 75 Thereafter 358 Total lease payments 10,478 Less imputed interest (810 ) Total Lease Liabilities $ 9,668 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies Legal Matters From time to time, the Company is involved in various legal proceedings, regulatory matters, and other disputes or claims arising from or related to claims incident to the normal course of the Company’s business activities. Although the results of such legal proceedings and claims cannot be predicted with certainty, as of March 31, 2023, the Company believes that it is not currently a party to any legal proceedings, regulatory matters, or other disputes or claims for which a material loss was considered probable or for which the amount (or range) of loss was reasonably estimable. However, regardless of the merit of the claims raised, legal proceedings may have an adverse impact on the Company as a result of adverse determinations, defense and settlement costs, diversion of management’s time and resources, and other factors. Dispute with United A dispute exists under the United capacity purchase agreement with respect to certain recurring amounts owed to Air Wisconsin by United. As of March 31, 2023, in accordance with applicable accounting standards, the Company has recorded $30,699 of the disputed amounts in accounts receivable, net, and $21,093 of the disputed amounts in notes receivable, on the consolidated balance sheets. In October 2022, United initiated arbitration under the agreement. In the arbitration, United has requested a declaration that it does not owe any of the disputed amounts claimed by Air Wisconsin, has asserted that Air Wisconsin improperly terminated the agreement and has asserted a claim for damages for wrongful termination. Since the arbitration process is still on-going, the hearing has not yet occurred and no award has been issued, Air Wisconsin cannot reasonably estimate the likely outcome of the arbitration including any potential award of the disputed amounts. Air Wisconsin, however, maintains that it has a strong position, that it was entitled to terminate the agreement and that it is entitled to the disputed amounts, including the amounts recorded in the consolidated balance sheets, under the terms of the agreement. For additional information, refer to Note 3, Capacity Purchase Agreements with United and American Treasury Payroll Support Program Audit In September 2020, the Treasury’s Office of Inspector General (OIG) commenced a routine audit in connection with Air Wisconsin’s receipt of funds under the PSP-1 PSP-1 PSP-2 PSP-3 PSP-2 PSP-3 PSP-1 Standby Letters of Credit As of March 31, 2023, Air Wisconsin had six outstanding letters of credit in the aggregate amount of $372 to guarantee the performance of its obligations under certain lease agreements, airport agreements and insurance policies, and it maintained a credit facility with a borrowing capacity of $375 for the issuance of such letters of credit. A significant portion of Air Wisconsin’s restricted cash balance secures the credit facility. Cash Obligations The following table sets forth the Company’s cash obligations for the periods presented: Payment Due for Year Ending Total 2023 (April 2024 2025 2026 2027 Thereafter Aircraft Notes Principal $ 55,600 $ 7,000 $ 7,000 $ 41,600 $ — $ — $ — Aircraft Notes Interest $ 5,066 $ 1,598 $ 1,874 $ 1,594 $ — $ — $ — Operating Lease Obligations $ 10,478 $ 4,165 $ 3,222 $ 2,487 $ 171 $ 75 $ 358 Total $ 71,144 $ 12,763 $ 12,096 $ 45,681 $ 171 $ 75 $ 358 The principal amount of the Aircraft Notes is payable in semi-annual installments of $3,500, and certain additional amounts may be payable based on excess cash flow. The amounts set forth in the table do not reflect any such additional excess cash flow payments. As of March 31, 2023, all of the Company’s long-term debt was subject to fixed interest rates. For additional information, refer to Note 6, Debt Management’s Discussion and Analysis of Financial Condition and Results of Operations – Debt and Credit Facilities |
Related-Party Transactions
Related-Party Transactions | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | 9. Related-Party Transactions Resource Holdings Associates (Resource Holdings) provides AWAC and Air Wisconsin with financial advisory and management services pursuant to an agreement entered into in January 2012. AWAC paid a total of $60 to Resource Holdings for each of the three month periods ended March 31, 2023 and March 31, 2022, plus the reimbursement of certain out-of-pocket Certain Relationships and Related Transactions, and Director Independence |
Earnings Per Share and Equity
Earnings Per Share and Equity | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share and Equity | 10. Earnings Per Share and Equity Calculations of net income per common share for the dates presented were as follows: Three months Three months Net income $ 882 $ 9,263 Preferred stock dividends 252 198 Net income applicable to common stockholders 630 9,065 Weighted average common shares outstanding Shares used in calculating basic earnings per share 44,980 47,638 Stock option — 397 Series C Preferred 16,500 16,500 Shares used in calculating diluted earnings per share 61,480 64,535 Earnings allocated to common stockholders per common share Basic $ 0.01 $ 0.19 Diluted $ 0.01 $ 0.14 Basic earnings per share of common stock is computed by dividing the net income applicable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of shares outstanding assuming the conversion of the Series C Preferred into an aggregate of 16,500 shares of common stock under the if-converted Series C Convertible Redeemable Preferred Stock In January 2020, Harbor issued 4,000 shares of the Series C Preferred. The rights, preferences, privileges, qualifications, restrictions and limitations relating to the Series C Preferred are set forth in the Certificate of Designations, Preferences and Rights of Series C Convertible Redeemable Preferred Stock (Certificate of Designations), which Harbor filed with the Secretary of State of the State of Delaware. The Series C Preferred accrues cumulative quarterly dividends at the rate per share of 6.0% of the Series C Issue Price per annum, which are cumulative and compound quarterly to the ext e six-month Each share of Series C Preferred was initially convertible at the election of the holders, at any time after issuance, into that number of shares of common stock determined by dividing the then applicable Series C Liquidation Amount (as defined below) by $0.80, subject to certain adjustments set forth in the Certificate of Designations (Conversion Price). The Conversion Price as of the date of this filing is $0.15091. The Conversion Price may be subject to further adjustment as described in the Certificate of Designations. The conversion of Series C Preferred is subject to a limitation on the number of shares of the common stock that may be issued upon conversion of Series C Preferred equal to the sum of (a) 16,500, plus (b) the quotient of (i) the aggregate amount of all accrued and unpaid Preferential Dividends divided by (ii) $0.80, plus (c) the quotient of (i) the number of shares of Series C Preferred issued as PIK Dividends multiplied by the Series C Issue Price, divided by (ii) $0.80. Any outstanding shares of Series C Preferred that may not be converted into common stock pursuant to the limitation described herein (Conversion Cap Excess Shares), from and after December 31, 2022, in addition to the Preferential Dividends, shall accrue cumulative quarterly dividends in an amount per share equal to 0.5% of the Series C Liquidation Amount of each outstanding Conversion Cap Excess Share in the first quarter after December 31, 2022, and increasing an additional 0.5% of the Series C Liquidation Amount in each subsequent quarter (Conversion Cap Excess Dividends). As of March 31, 2023, 755 shares of the Series C Preferred were immediately convertible into 16,500 shares of common stock (representing 26.9% of the fully diluted shares of capital stock of Harbor), and the remaining 3,245 shares of the Series C Preferred are deemed Conversion Cap Excess Shares. Harbor may redeem all, but not less than all, of the Conversion Cap Excess Shares at any time upon notice to the holders for a cash payment in an amount equal to the Series C Liquidation Amount per share. In the event of any liquidation, dissolution or winding up of Harbor or a sale of Harbor, the Series C Preferred shall be entitled to receive, prior and in preference to any distribution of any assets of Harbor to the common stock or other junior capital stock, an amount equal to the Series C Issue Price, plus an amount equal to all accrued but unpaid Preferential Dividends, Conversion Cap Excess Dividends and any other accrued but unpaid dividends (Series C Liquidation Amount). On March 31, 2023, the board of directors declared a Preferential Dividend of $198 and a Conversion Cap Excess Dividend of $54 on the Series C Preferred, which were paid on March 31, 2023. Based on the applicable accounting guidance, Harbor is required to apply the “if-converted” Harbor accounts for its Series C Preferred in accordance with the guidance in ASC Topic 480, Distinguishing Liabilities from Equity |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | 11. Supplemental Cash Flow Information Cash payments for interest for the three months ended March 31, 2023 and March 31, 2022 were $556 and $595, respectively. Cash payments for income taxes for the three months ended March 31, 2023 and March 31, 2022 were $45 and $6, respectively. Cash payments included in the measurement of lease liabilities related to operating leases were $1,415 and $1,490 for the three months ended March 31, 2023 and March 31, 2022, respectively. The following table provides a reconciliation of all cash and cash equivalents and restricted cash reported on the consolidated balance sheets that sum to the total of those same amounts shown on the consolidated statements of cash flows: March 31, 2023 December 31, 2022 Cash and cash equivalents $ 22,509 $ 33,333 Restricted cash 671 849 Total cash, cash equivalents, and restricted cash $ 23,180 $ 34,182 |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 12. Intangible Assets Intangible assets consist of the following indefinite-lived assets as of the dates presented: March 31, 2023 December 31, 2022 Gross Carrying Amount Gross Carrying Amount Trade names and air carrier certificate 5,300 5,300 Total $ 5,300 $ 5,300 |
Stock Repurchase Program
Stock Repurchase Program | 3 Months Ended |
Mar. 31, 2023 | |
Stock Repurchase Program [Abstract] | |
Stock Repurchase Program | 13. Stock Repurchase Program On March 30, 2021, the board of directors adopted a stock repurchase program pursuant to which Harbor was initially authorized to repurchase up to $1,000 of shares of its common stock during the first calendar month of the program, subject to an automatic increase of $1,000 per calendar month thereafter. Harbor is not obligated under the program to acquire any particular number or value of shares and can suspend or terminate the program at any time. Harbor acquired a total of 470 and 6,262 shares of its common stock pursuant to the stock repurchase program in the three months ended March 31, 2023 and March 31, 2022, respectively. As of March 31, 2023 and December 31, 2022, total cash of $296 and $475, respectively, was For additional information, refer to Part II, Item 2, “ Purchases of Equity Securities by the Issuer and Affiliated Purchasers |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Subsequent Events The Company evaluated its consolidated financial statements included in this Quarterly Report for subsequent events through May 15, 2023, the date the financial statements were available to be issued and determined that there were none. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) and include the accounts of Harbor Diversified, Inc. (Harbor) and its subsidiaries (collectively, the Company). Harbor is a non-operating holding company is a non-operating entity with The consolidated financial statements have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the following disclosures are adequate to make the information presented not misleading. The consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary to present fairly in all material respects the financial condition and results of operations for the interim periods presented. All adjustments are of a normal recurring nature, unless otherwise disclosed. All of the dollar and share amounts set forth in these condensed notes to consolidated financial statements are presented in thousands except per share and par value amounts. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in Harbor’s Annual Report on Form 10-K |
Description of Operations | Description of Operations The Company has principal lines of business focused on (1) providing regional air services through Air Wisconsin (airline business), (2) acquiring flight equipment for the purpose of leasing the equipment to Air Wisconsin, and (3) providing flight equipment financing to Air Wisconsin. Additionally, Air Wisconsin is continuing to explore aircraft leasing opportunities and entered into its first short-term aircraft lease in September 2022. The airline business is operated entirely through Air Wisconsin, which is an independent regional air carrier. For the three months ended March 31, 2023, Air Wisconsin was engaged in the business of providing scheduled passenger service for United Airlines, Inc. (United) under a capacity purchase agreement (United capacity purchase agreement) that was entered into in February 2017. Air Wisconsin will cease flying for United in early June 2023. Since March 1, 2023, Air Wisconsin has also provided scheduled passenger service for American Airlines, Inc. (American) under a capacity purchase agreement (American capacity purchase agreement), pursuant to which Air Wisconsin has agreed to provide up to 60 CRJ-200 For additional information, refer to Note 3, Capacity Purchase Agreements with United and American |
Contract Revenues | Contract Revenues For the three months ended March 31, 2023, approximately 95.2% of the Company’s operating revenues were derived from operations associated with the United capacity purchase agreement and approximately 4.7% of the Company’s operating revenues were derived from operations associated with the American capacity purchase agreement. In performing an analysis of the United capacity purchase agreement and the American capacity purchase agreement within the framework of Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842) Revenue from Contracts with Customers (Topic 606) the capacity purchase agreements that is designed to reimburse Air Wisconsin for use of a certain number of aircraft, which is referred to as “right of use,” is considered lease revenue. All other revenue received by Air Wisconsin under the capacity purchase agreements is considered non-lease non-lease non-lease non-lease The Company recognizes revenue under each capacity purchase agreement over time as services are provided. Under each agreement, Air Wisconsin is entitled to receive a fixed rate for each departure and block hour (measured from takeoff to landing, including taxi time), and a fixed amount per covered aircraft per day. Air Wisconsin’s performance obligation is met and revenue is recognized over time, which is then reflected in contract revenues. Each agreement also provides for the reimbursement to Air Wisconsin of certain direct operating expenses such as certain insurance premiums and property taxes. United makes provisional cash payments to Air Wisconsin during each month of service based on projected flight schedules. These provisional cash payments are subsequently reconciled with United based on actual completed flight activity. As of May 12, 2023 these payments were reconciled through October 2022. Subject to final reconciliation of the provisional cash payments for the periods after October 31, 2022, as of March 31, 2023, United owed Air Wisconsin approximately $30,499, which is recorded in accounts receivable, net, on the consolidated balance sheets. United is disputing that it owes $30,148 of this amount. For additional information, refer to Note 3, Capacity Purchase Agreements with United and American Commitments and Contingencies American makes provisional cash payments to Air Wisconsin during each month of service based on projected flight schedules. These provisional cash payments are subsequently reconciled with American based on actual completed flight activity. As of the date of this filing, the payments for March 2023, the first month of Air Wisconsin’s flight operations for American, have been reconciled. Subject to final reconciliation of the provisional cash payments for the March 2023 flight activity, American owed Air Wisconsin approximately $1,446, which is recorded in accounts receivable, net, on the consolidated balance sheets. Under the United capacity purchase agreement, Air Wisconsin is eligible to receive incentive payments, or may be required to pay penalties, upon the achievement of, or failure to achieve, certain performance criteria primarily based on flight completion, on-time of Under the American capacity purchase agreement, Air Wisconsin is eligible to receive bonus payments, or may be required to pay rebates, upon the achievement of, or failure to achieve, certain performance criteria primarily based on flight completion, on-time Under the United capacity purchase agreement, Air Wisconsin is entitled to receive a fixed amount per aircraft per day for each month during the term of the agreement. In accordance with GAAP, the Company recognizes revenue related to the fixed payments on a proportional basis taking into account the number of flights actually completed in that period relative to the number of flights expected to be completed in subsequent periods during the remaining term of the agreement. Air Wisconsin deferred fixed revenues between April 2020 and June 2021 due to the significant decrease in its completed flights as a result of the COVID-19 Liquidity Under the United capacity purchase agreement, consistent with the discussion above, for the three months ended March 31, 2023, as compared to the three months ended March 31, 2022, Air Wisconsin also recognized increased non-refundable Under the American capacity purchase agreement, Air Wisconsin is entitled to receive a fixed amount per aircraft per day for each month during the term of the agreement based on a formula which takes into account pilot availability for any given month. Because this revenue relates to the specific flight activity for the month in which the flights occur, Air Wisconsin will recognize this revenue on a monthly basis. Under the American capacity purchase agreement, Air Wisconsin is al so (non-refundable non-refundable non-refundable non-refundable non-refundable non-refundable non-refundable As noted above, Air Wisconsin incurred certain startup costs (fulfillment costs) prior to the start of flying operations for American on March 1, 2023. These costs included changes to the livery, fuel costs, and certain training expenses. The total fulfillment costs incurred were $870. These costs will be amortized on a proportional basis taking into account the number of flights actually completed in the period relative to the number of flights expected to be completed in subsequent periods during the remaining term of the agreement. For the three months ending March 31, 2023 and March 31, 2022, Air Wisconsin recorded $2 and $0, respectively of amortization expense related to fulfillment costs. As of March 31, 2023, fulfillment costs of $117 are recorded as part of short-term contract costs, and $751 as part of long-term contract costs on the consolidated balance sheets. Under the American capacity purchase agreement, Air Wisconsin will also receive a monthly support fee and be reimbursed for heavy maintenance expenses based on the fixed covered per aircraft per day rate over the term of the agreement. In addition, Amendment No. 1 to the American capacity purchase agreement provided for a one-time one-time one-time assistance to these items which is netted against short-term contract liabilities on the consolidated balance sheets. Air Wisconsin’s contract liabilities related to the one-time remai ning te r As part of the October 2020 amendment to the United capacity purchase agreement (CPA Amendment), United made a cash settlement payment of $670 and issued a note receivable to Air Wisconsin in the amount of $11,048, of which $4,410 was deferred as of December 31, 2020, with the remaining portion to be recognized in proportion to the number of flights expected to be completed in subsequent periods through the end of the wind-down period. In October 2021, in accordance with the CPA Amendment, Air Wisconsin received $294 from United for the opening of a crew base, of which $73 was deferred as of December 31, 2021, with the remaining portion to be recognized in proportion to the number of flights expected to be completed in subsequent periods through the end of the wind-down period. For the three months March 31, 2023, Air Wisconsin recorded $450 of revenue related to these items, compared to $519 of revenue related to these items for the three months ended March 31, 2022. As of March 31, 2023, deferred CPA Amendment revenue in the amount of $199 is recorded as part of contract liabilities on the consolidated balance sheets. The timing of the recognition under the United capacity purchase agreement of deferred fixed revenue, non-refundable non-refundable one-time The CPA Amendment provided, among other things, for the payment or accrual of certain amounts by United to Air Wisconsin based on certain scheduling benchmarks. In conjunction with the significant reduction in departures and block hours resulting from the COVID-19 from of Commitments and Contingencies |
Other Revenues | Other Revenues Other revenues primarily consist of the sales of parts to other airlines and aircraft lease payments. These other revenues are immaterial in all periods presented. The transaction price for these other revenues generally is fair market value. |
Cash and Cash Equivalents | Cash and Cash Equivalents Money market funds and investments and deposits with an original maturity of three months or less when acquired are considered cash and cash equivalents. |
Restricted Cash | Restricted Cash As of March 31, 2023 and December 31, 2022, the Company had a restricted cash balance of $671 and $849, respectively. A portion of the balance secures a credit facility for the issuance of letters of credit guaranteeing the performance of Air Wisconsin’s obligations under certain lease agreements, airport agreements and insurance policies. The remaining portion is cash held for the repurchase of shares under Harbor’s stock repurchase program. For additional information, refer to Note 8, Commitments and Contingencies Stock Repurchase Program. |
Marketable Securities | Marketable Securities The Company’s equity security investments, consisting of exchange-traded funds and mutual funds, are recorded at fair value based on quoted market prices (Level 1) in marketable securities on the consolidated balance sheets, in accordance with the guidance in ASC Topic 321, Investments-Equity Securities . For additional information, refer to “ Fair Value of Financial Instruments ” in this Note 1. The calculation of net unrealized gains and losses that relate to marketable securities held as of March 31, 2023 and March 31, 2022 is as follows: Three Three Months Net gains (losses) recognized during the period on equity securities $ 1,740 $ (2,423 ) Less: Net gains recognized during the period on equity securities sold during the period — — Unrealized gains (losses) recognized during the period on equity securities held as of the end of the period $ 1,740 $ (2,423 ) |
Property and Equipment | Property and Equipment Property and equipment are stated at cost and depreciated over their useful lives to their estimated residual values using the straight-line method as follows: Assets Depreciable Life Current Residual Value Aircraft 7 years $ 50 Rotable parts 7 years 10 % Spare engines 7 years $ 25 Ground equipment up to 10 years 0 % Office equipment up to 10 years 0 % Leasehold improvements Shorter of asset or lease life 0 % The table below sets forth the original cost of the Company’s fixed assets and accumulated depreciation or amortization as of the dates presented: March 31, 2023 December 31, 2022 Assets Original Accumulated Original Accumulated Aircraft 70,143 42,874 70,089 40,544 Engines 164,706 108,194 163,708 103,834 Rotable parts 27,622 18,535 27,936 18,655 Ground equipment 2,736 2,113 2,718 2,063 Office equipment 4,517 4,255 4,519 4,218 Leasehold improvements 987 503 818 452 270,711 176,474 269,788 169,766 The amounts in the table exclude construction in process of $ relat es to Air Wisconsin’s capitalized engine maintenance costs are amortized over their estimated useful life measured in remaining engine cycles to the next scheduled shop visit. Lotus’ engine maintenance costs are expensed. Depreciation expense in the three months ended March 31, 2023 and March 31, 2022 was $6,256 and $6,315, respectively, and is included in depreciation, amortization, and obsolescence in the accompanying consolidated statements of operations. |
Impairment of Long-Lived and Intangible Assets | Impairment of Long-Lived Assets and Indefinite-Lived Intangible Assets The Company evaluates long-lived assets and indefinite-lived intangible assets for potential impairment and records impairment losses when events and circumstances indicate the assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than their carrying amounts. Impairment losses are measured by comparing the fair value of the assets to their carrying amounts. In determining the need to record impairment charges, the Company is required to make certain estimates and assumptions regarding such things as the current fair market value of the assets and future net cash flows to be generated by the assets. If there are subsequent changes to these estimates or assumptions, or if actual results differ from these estimates or assumptions, such changes could impact the financial statements in the future. The Company conducted a qualitative impairment assessment of its long-lived assets and indefinite-lived intangible assets and determined that no quantitative impairment tests were required to be performed as of March 31, 2023 and March 31, 2022. |
Income Taxes | Income Taxes The Company utilizes the asset and liability method for accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based upon the estimated future tax effects of differences between the financial statement and tax basis of assets and liabilities, as measured by the current applicable tax rates. Deferred tax expense represents the result of changes in deferred tax assets and liabilities. As required by the uncertain tax position guidance, the Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more-likely-than-not more-likely-than-not The Company is subject to federal, state and local income taxes in the United States. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require the application of significant judgment. The Company is no longer subject to U.S. federal income tax examinations for the years prior to 2019. With a few exceptions, the Company is no longer subject to state or local income tax examinations for years prior to 2018. As of March 31, 2023, the Company had no outstanding tax examinations. |
Concentration of Customer Risk | Concentration of Credit Risk and Customer Risk Financial instruments that potentially expose the Company to a concentration of credit risk consist principally of cash and cash equivalents that are held by financial institutions in the United States and accounts receivable. The Company at times has had bank deposits in excess of the Federal Deposit Insurance Corporation (FDIC) insurance limit. The Company maintains its cash accounts with high credit quality financial institutions and, accordingly, the Company believes it has Significant customers are those which represent more than 10% of the Company’s total revenue or net accounts receivable balance at each respective balance sheet date. Approximately 95.2% and 99.9% of the Company’s consolidated revenues for the three months ended March 31, 2023, and March 31, 2022, respectively, and a substantial portion of accounts receivable and notes receivable at the end of such three month periods were derived from the United capacity purchase agreement. Air Wisconsin entered into the American capacity purchase agreement in August 2022 and commenced flying operations for American in March 2023. American will become Air Wisconsin’s sole airline partner once all aircraft are removed from United’s flying operations. At that point, substantially all of the Company’s revenues will be derived from the American capacity purchase agreement. Neither United’s nor American’s obligations to pay Air Wisconsin the amounts required to be paid under the applicable capacity purchase agreement are collateralized. For additional information, refer to Note 3, Capacity Purchase Agreements with United and American |
Estimates and Assumptions | Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments include cash and cash equivalents, restricted cash, marketable securities, accounts receivable, long-term investments, accounts payable, and long-term debt. The Company believes the carrying amounts of these financial instruments, with the exception of marketable securities, are a reasonable estimate of their fair value because of the short-term nature of such instruments, or, in the case of long-term debt, because of fixed interest rates on such debt. Marketable securities are reported at fair value based on quoted market prices. Long-term investments are held-to-maturity Fair value is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date (that is, an exit price). Fair Value Measurement Level 1 - Quoted market prices in active markets for identical assets or liabilities. Level 2 - Inputs other than Level 1 inputs that are either directly or indirectly observable. Level 3 - Unobservable inputs developed using the Company’s estimates and assumptions, which reflect those that market participants would use. The determination of where an asset or liability falls in the hierarchy requires significant judgment. The Company evaluates these determinations each reporting period, and it is possible that an asset or liability may be classified differently from year to year. The tables below set forth the Company’s classification of marketable securities and long-term investments as of the dates presented: March 31, 2023 Total Level 1 Level 2 Level 3 Marketable securities – exchange-traded funds $ 111,024 $ 111,024 $ — $ — Marketable securities – mutual funds 45,281 45,281 — — Long-term investments – bonds (see Note 6) 4,275 — 4,275 — Total $ 160,580 $ 156,305 $ 4,275 $ — March 31, 2022 Total Level 1 Level 2 Level 3 Marketable securities – exchange-traded funds $ 111,851 $ 111,851 $ — $ — Marketable securities – mutual funds 24,327 24,327 — — Long-term investments – bonds (see Note 6) 4,275 — 4,275 — Total $ 140,453 $ 136,178 $ 4,275 $ — |
Reclassification | Reclassification Certain non-operating |
Recently Adopted Accounting Pronouncement | Recently Adopted Accounting Pronouncement On January 1, 2023 the Company adopted ASU 2016-13, Financial Instruments-Credit Losses 2016-13). 2016-13 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of net unrealized gains and losses for the period that relate to marketable securities | The calculation of net unrealized gains and losses that relate to marketable securities held as of March 31, 2023 and March 31, 2022 is as follows: Three Three Months Net gains (losses) recognized during the period on equity securities $ 1,740 $ (2,423 ) Less: Net gains recognized during the period on equity securities sold during the period — — Unrealized gains (losses) recognized during the period on equity securities held as of the end of the period $ 1,740 $ (2,423 ) |
Schedule of Property and Equipment Useful lives | Property and equipment are stated at cost and depreciated over their useful lives to their estimated residual values using the straight-line method as follows: Assets Depreciable Life Current Residual Value Aircraft 7 years $ 50 Rotable parts 7 years 10 % Spare engines 7 years $ 25 Ground equipment up to 10 years 0 % Office equipment up to 10 years 0 % Leasehold improvements Shorter of asset or lease life 0 % |
Summary of Original Cost of Company's Fixed Assets and Accumulated Depreciation or Amortization | The table below sets forth the original cost of the Company’s fixed assets and accumulated depreciation or amortization as of the dates presented: March 31, 2023 December 31, 2022 Assets Original Accumulated Original Accumulated Aircraft 70,143 42,874 70,089 40,544 Engines 164,706 108,194 163,708 103,834 Rotable parts 27,622 18,535 27,936 18,655 Ground equipment 2,736 2,113 2,718 2,063 Office equipment 4,517 4,255 4,519 4,218 Leasehold improvements 987 503 818 452 270,711 176,474 269,788 169,766 |
Summary of company's classification of Marketable Securities And Long Term Investments | The tables below set forth the Company’s classification of marketable securities and long-term investments as of the dates presented: March 31, 2023 Total Level 1 Level 2 Level 3 Marketable securities – exchange-traded funds $ 111,024 $ 111,024 $ — $ — Marketable securities – mutual funds 45,281 45,281 — — Long-term investments – bonds (see Note 6) 4,275 — 4,275 — Total $ 160,580 $ 156,305 $ 4,275 $ — March 31, 2022 Total Level 1 Level 2 Level 3 Marketable securities – exchange-traded funds $ 111,851 $ 111,851 $ — $ — Marketable securities – mutual funds 24,327 24,327 — — Long-term investments – bonds (see Note 6) 4,275 — 4,275 — Total $ 140,453 $ 136,178 $ 4,275 $ — |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consists of the following (with interest rates, as of the dates presented): March 31, December 31, Aircraft Notes, due December 31, 2025 ( ) $ 60,666 $ 61,222 Less: current maturities 9,084 9,154 Long-term debt $ 51,582 $ 52,068 |
Schedule of Maturities of Long-Term Debt | Maturities of long-term debt for the periods subsequent to March 31, 2023, are as follows: Fiscal Year Amount April 2023 through December 2023 $ 8,598 2024 8,874 2025 43,194 Total $ 60,666 |
Lease Obligations (Tables)
Lease Obligations (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Summary of Operating Lease Related Terms and Discount Rates | The table below presents operating lease related terms and discount rates as of: March 31, Weighted-average remaining lease term 2.81 years Weighted-average discount rate 5.74 % |
Schedule of Component of Lease Cost | Components of lease costs were as follows for the three months ended as of: March 31, March 31, Operating lease costs $ 1,474 $ 1,474 Short-term lease costs 65 104 Variable lease costs 55 35 Total Lease Costs $ 1,594 $ 1,613 |
Schedule of Future Minimum Lease Payments Under Non-Cancelable Operating Leases | The following table summarizes the future minimum rental payments required under operating leases that had initial or remaining non-cancelable Fiscal Year Amount April 2023 through December 2023 $ 4,165 2024 3,222 2025 2,487 2026 171 Fiscal Year Amount 2027 75 Thereafter 358 Total lease payments 10,478 Less imputed interest (810 ) Total Lease Liabilities $ 9,668 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Cash Obligations | The following table sets forth the Company’s cash obligations for the periods presented: Payment Due for Year Ending Total 2023 (April 2024 2025 2026 2027 Thereafter Aircraft Notes Principal $ 55,600 $ 7,000 $ 7,000 $ 41,600 $ — $ — $ — Aircraft Notes Interest $ 5,066 $ 1,598 $ 1,874 $ 1,594 $ — $ — $ — Operating Lease Obligations $ 10,478 $ 4,165 $ 3,222 $ 2,487 $ 171 $ 75 $ 358 Total $ 71,144 $ 12,763 $ 12,096 $ 45,681 $ 171 $ 75 $ 358 |
Earnings Per Share and Equity (
Earnings Per Share and Equity (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Calculations of Net Income Per Common Share | Calculations of net income per common share for the dates presented were as follows: Three months Three months Net income $ 882 $ 9,263 Preferred stock dividends 252 198 Net income applicable to common stockholders 630 9,065 Weighted average common shares outstanding Shares used in calculating basic earnings per share 44,980 47,638 Stock option — 397 Series C Preferred 16,500 16,500 Shares used in calculating diluted earnings per share 61,480 64,535 Earnings allocated to common stockholders per common share Basic $ 0.01 $ 0.19 Diluted $ 0.01 $ 0.14 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Summary of Cash and Cash Equivalents | The following table provides a reconciliation of all cash and cash equivalents and restricted cash reported on the consolidated balance sheets that sum to the total of those same amounts shown on the consolidated statements of cash flows: March 31, 2023 December 31, 2022 Cash and cash equivalents $ 22,509 $ 33,333 Restricted cash 671 849 Total cash, cash equivalents, and restricted cash $ 23,180 $ 34,182 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consist of the following indefinite-lived assets as of the dates presented: March 31, 2023 December 31, 2022 Gross Carrying Amount Gross Carrying Amount Trade names and air carrier certificate 5,300 5,300 Total $ 5,300 $ 5,300 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2020 | Nov. 04, 2022 | Oct. 31, 2021 | |
Summary of Significant Accounting Policies [Line Items] | ||||||
Depreciation expense | $ 6,256 | $ 6,315 | ||||
Fixed Revenues Deferred | $ 5,841 | 40,102 | ||||
Notes Receivable Instrument, Interest Rate | 4.50% | |||||
Notes Receivable Instrument, Maturity Date | Feb. 28, 2023 | |||||
Interest receivable | $ 551 | |||||
Accounts receivable, net | 1,235 | |||||
Fulfillment costs | 870 | |||||
Deferred revenue recognized | 1,375 | |||||
Revenue, Performance Obligation | 1,641 | 3,509 | ||||
Cash Settlement | $ 670 | |||||
Note Receivable | 11,048 | 11,048 | ||||
Contract with Customer, Liability, Current | 1,120 | $ 1,985 | ||||
Payments for proceeds from incentives and penalties | 1,027 | 777 | ||||
Cash Received From United For The Opening Of A Crew Base | $ 294 | |||||
Restricted Cash | 671 | 849 | ||||
Marketable securities | 156,305 | 153,827 | ||||
Revenue from contract with customers amount of consideration receivable due for settlement | 30,148 | |||||
Operating expenses | 61,612 | 53,175 | ||||
Undisputed notes receivables | $ 50,126 | |||||
Notes receivable | 21,093 | |||||
Cash and Cash Equivalents | $ 22,509 | 33,333 | ||||
Concentration Risk, Percentage | 10% | |||||
Airline, Capacity Purchase Arrangements | $ 4,442 | 3,765 | ||||
Amortization Of Fulfillment Costs | 2 | 0 | ||||
Financing Receivable, Allowance for Credit Loss | 14 | 18 | ||||
Construction in Progress, Gross | 2,814 | 2,237 | ||||
October 2020 Amendment [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Deferred revenue current | 410 | 1,335 | ||||
Deferred revenue, Noncurrent | 199 | |||||
Deferred Revenue | $ 73 | |||||
Deferred Cash Settlement due from United | $ 4,410 | |||||
Deferred Revenue Recognition | 450 | 519 | ||||
Air Wisconsin [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Deferred revenue current | 1,010 | |||||
Accounts receivable, net | 30,499 | |||||
Upfront fee | 925 | 1,066 | ||||
Fulfillment costs | 99 | 114 | ||||
Contract with Customer, Liability, Current | 2,307 | |||||
Deferred Revenue Recognition | 10,720 | 4,736 | ||||
Airline, Capacity Purchase Arrangements | 3,543 | |||||
Estimated Up front Fee Based On Number Of Flights Completed | 4,563 | |||||
Revenue From Heavy Maintenance Services And Support Fee Recognized | 114 | 0 | ||||
Accounts Receivable Netted Against Contract Liabilities Current | 101 | |||||
Non-refundable upfront fee revenues | $ 10 | $ 0 | ||||
Revenue Benchmark [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Concentration Risk, Percentage | 95.20% | 99.90% | ||||
Revision of prior period, reclassification, adjustment [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Operating expenses | $ 210 | |||||
American Capacity Purchase Agreement [Member] | Air Wisconsin [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Accounts receivable, net | $ 1,446 | |||||
Airline, Capacity Purchase Arrangements | $ 1,020 | |||||
American Capacity Purchase Agreement [Member] | Revenue Benchmark [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Concentration Risk, Percentage | 4.70% | |||||
United Capacity Purchase Agreement [Member] | Revenue Benchmark [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Concentration Risk, Percentage | 95.20% | |||||
Short-Term Contract with Customer [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Deferred revenue current | $ 612 | 0 | ||||
Fulfillment costs | 117 | |||||
Long-Term Contract with Customer [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Deferred revenue, Noncurrent | 398 | $ 0 | ||||
Fulfillment costs | $ 751 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies- Summary of net unrealized gains and losses for the period that relate to marketable securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Marketable Securities, Gain (Loss) [Abstract] | ||
Net gains (losses) recognized during the period on equity securities | $ 1,740 | $ (2,423) |
Less: Net gains recognized during the period on equity securities sold during the period | 0 | 0 |
Unrealized gains (losses) recognized during the period on equity securities held as of the end of the period | $ 1,740 | $ (2,423) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Property and Equipment Useful lives (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Aircraft [Member] | |
Property, Plant and Equipment [Line Items] | |
Property Plant And Equipment Useful Life | 7 years |
Current Residual Value | $ 50 |
Rotable Parts [Member] | |
Property, Plant and Equipment [Line Items] | |
Property Plant And Equipment Useful Life | 7 years |
Current Residual Value, percent | 10% |
Spare Engines [Member] | |
Property, Plant and Equipment [Line Items] | |
Property Plant And Equipment Useful Life | 7 years |
Current Residual Value | $ 25 |
Ground Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Current Residual Value, percent | 0% |
Property Plant And Equipment Useful Life | up to 10 years |
Office Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Current Residual Value, percent | 0% |
Property Plant And Equipment Useful Life | up to 10 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Current Residual Value, percent | 0% |
Property Plant And Equipment Useful Life | Shorter of asset or lease life |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Summary of Original Cost of Company's Fixed Assets and Accumulated Depreciation or Amortization (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Original Cost | $ 270,711 | $ 269,788 |
Accumulated Depreciation/ Amortization | 176,474 | 169,766 |
Aircraft [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Original Cost | 70,143 | 70,089 |
Accumulated Depreciation/ Amortization | 42,874 | 40,544 |
Engines [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Original Cost | 164,706 | 163,708 |
Accumulated Depreciation/ Amortization | 108,194 | 103,834 |
Rotable Parts [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Original Cost | 27,622 | 27,936 |
Accumulated Depreciation/ Amortization | 18,535 | 18,655 |
Ground Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Original Cost | 2,736 | 2,718 |
Accumulated Depreciation/ Amortization | 2,113 | 2,063 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Original Cost | 4,517 | 4,519 |
Accumulated Depreciation/ Amortization | 4,255 | 4,218 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Original Cost | 987 | 818 |
Accumulated Depreciation/ Amortization | $ 503 | $ 452 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies- Summary of company's classification of Marketable Securities And Long Term Investments (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Instruments, Owned, at Fair Value | $ 160,580 | $ 140,453 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 156,305 | 136,178 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 4,275 | 4,275 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 0 | 0 |
Marketable securities – exchange-traded funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 111,024 | 111,851 |
Marketable securities – exchange-traded funds [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 111,024 | 111,851 |
Marketable securities – exchange-traded funds [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 0 | 0 |
Marketable securities – exchange-traded funds [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 0 | 0 |
Marketable securities –mutual funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 45,281 | 24,327 |
Marketable securities –mutual funds [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 45,281 | 24,327 |
Long-term investments – bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 4,275 | 4,275 |
Long-term investments – bonds [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 0 | 0 |
Long-term investments – bonds [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 4,275 | 4,275 |
Long-term investments – bonds [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Instruments, Owned, at Fair Value | $ 0 | $ 0 |
Capacity Purchase Agreements _2
Capacity Purchase Agreements with United and American - Additional Information (Detail) | 1 Months Ended |
Aug. 31, 2022 Aircraft | |
American Airlines [Member] | CRJ-200 [Member] | Maximum [member] | |
Number of aircraft to be operated for American Airlines | 60 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2023 Aircraft | |
CRJ-200 [Member] | |
Property, Plant and Equipment [Line Items] | |
Number of aircraft acquired | 64 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Line Items] | ||
Effective income tax rate reconciliation percent total | (44.20%) | 23.80% |
Effective Income Tax Rate, Federal statutory rate | 21% | 21% |
Debt - Schedule Of Long Term De
Debt - Schedule Of Long Term Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Total debt | $ 60,666 | |
Less: current maturities | 9,084 | $ 9,154 |
Long-term debt | 51,582 | 52,068 |
Aircraft Notes Due December 31, 2025 [Member] | ||
Total debt | $ 60,666 | $ 61,222 |
Debt - Additional information (
Debt - Additional information (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Jul. 31, 2003 |
Operating lease right of use asset | $ 12,153 | $ 13,480 | |
Hangar [Member] | |||
Operating lease right of use asset | $ 2,489 | $ 2,547 | |
City of Milwaukee, Wisconsin variable rate Industrial Development Bonds [Member] | |||
Aggregate principal amount | $ 4,275 |
Debt - Schedule of Maturities o
Debt - Schedule of Maturities of Long-term Debt (Detail) $ in Thousands | Mar. 31, 2023 USD ($) |
Maturities of Long-term Debt [Abstract] | |
April 2023 through December 2023 | $ 8,598 |
2024 | 8,874 |
2025 | 43,194 |
Total | $ 60,666 |
Lease Obligations - Additional
Lease Obligations - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease right of use asset | $ 12,153 | $ 13,480 | |
Current portion of operating lease liability | 5,125 | 5,091 | |
Long-term operating lease liability | 4,543 | $ 5,849 | |
Cash payments included in the measurement of lease liabilities related to operating leases | 1,415 | $ 1,490 | |
Operating lease rent expense | $ 1,594 | $ 1,613 | |
Minimum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Operating Lease Remaining Lease | 3 months | ||
Maximum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Operating Lease Remaining Lease | 10 years 9 months |
Lease Obligations - Summary Of
Lease Obligations - Summary Of Weighted average Terms and Discount Rate For Operating Leases (Detail) | Mar. 31, 2023 |
Leases [Abstract] | |
Weighted-average remaining lease term | 2 years 9 months 21 days |
Weighted-average discount rate | 5.74% |
Lease Obligations - Schedule of
Lease Obligations - Schedule of Component Of Lease Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Lease, Cost [Abstract] | ||
Operating lease costs | $ 1,474 | $ 1,474 |
Short-term lease costs | 65 | 104 |
Variable lease costs | 55 | 35 |
Total Lease Costs | $ 1,594 | $ 1,613 |
Lease Obligations - Schedule _2
Lease Obligations - Schedule of Future Minimum Lease Payments Under Non-Cancelable Operating Leases (Detail) $ in Thousands | Mar. 31, 2023 USD ($) |
Leases [Abstract] | |
April 2023 through December 2023 | $ 4,165 |
2024 | 3,222 |
2025 | 2,487 |
2026 | 171 |
2027 | 75 |
Thereafter | 358 |
Total lease payments | 10,478 |
Less imputed interest | (810) |
Total Lease Liabilities | $ 9,668 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) Letter_Of_Credit | |
Other Commitments [Line Items] | |
Number of outstanding letters of credit | Letter_Of_Credit | 6 |
Accounts Receivable [Member] | |
Other Commitments [Line Items] | |
Dispute Amount | $ 30,699 |
Notes Receivable [Member] | |
Other Commitments [Line Items] | |
Dispute Amount | 21,093 |
Air Wisconsin [Member] | |
Other Commitments [Line Items] | |
Outstanding credit facility | 375 |
Aircraft Notes principal [Member] | |
Other Commitments [Line Items] | |
Semi-Annual Principal amount of notes payable | 3,500 |
Letter of Credit [Member] | |
Other Commitments [Line Items] | |
Outstanding credit facility | $ 372 |
Commitments and Contingencies_2
Commitments and Contingencies - Cash Obligations (Detail) $ in Thousands | Mar. 31, 2023 USD ($) |
Contractual Obligation Fiscal Year Maturity [Line Items] | |
Long-term debt, Total | $ 60,666 |
Long-term debt, due in 2023 (April through December) | 8,874 |
Long-term debt, due in 2024 | 43,194 |
Total lease payments | 10,478 |
Operating lease obligations, due in 2023 (April through December) | 4,165 |
Operating lease obligations, due in 2024 | 3,222 |
Operating lease obligations, due in 2025 | 2,487 |
Operating lease obligations, due in 2026 | 171 |
Operating lease obligations, due in 2027 | 75 |
Operating lease obligations, due Thereafter | 358 |
Total cash obligations | 71,144 |
Total cash obligations, due in 2023 (April through December) | 12,763 |
Total cash obligations, due in 2024 | 12,096 |
Total cash obligations, due in 2025 | 45,681 |
Total cash obligations, due in 2026 | 171 |
Total cash obligations, due in 2027 | 75 |
Total cash obligations, due Thereafter | 358 |
Aircraft Notes Principal [Member] | |
Contractual Obligation Fiscal Year Maturity [Line Items] | |
Long-term debt, Total | 55,600 |
Long-term debt, due in 2023 (April through December) | 7,000 |
Long-term debt, due in 2024 | 7,000 |
Long-term debt, due in 2025 | 41,600 |
Long-term debt, due in 2026 | 0 |
Long-term debt, due in 2027 | 0 |
Aircraft Notes Interest [Member] | |
Contractual Obligation Fiscal Year Maturity [Line Items] | |
Long-term debt, Total | 5,066 |
Long-term debt, due in 2023 (April through December) | 1,598 |
Long-term debt, due in 2024 | 1,874 |
Long-term debt, due in 2025 | 1,594 |
Long-term debt, due in 2026 | 0 |
Long-term debt, due in 2027 | $ 0 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Related Party Transaction [Line Items] | ||
Annual recurring fee payable monthly pursuant to service agreement | $ 150 | |
Payment For Management services fee | 38 | $ 38 |
AWAC Aviation Inc [Member] | Financial Advisory And Management Services [Member] | ||
Related Party Transaction [Line Items] | ||
Payment For Management services fee | $ 60 | $ 60 |
Earnings Per Share and Equity -
Earnings Per Share and Equity - Calculations of Net Income Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share Reconciliation [Abstract] | ||
Net income | $ 882 | $ 9,263 |
Preferred stock dividends | 252 | 198 |
Net income applicable to common stockholders | $ 630 | $ 9,065 |
Weighted average common shares outstanding | ||
Shares used in calculating basic earnings per share | 44,980 | 47,638 |
Stock option | 0 | 397 |
Series C Preferred | 16,500 | 16,500 |
Shares used in calculating diluted earnings per share | 61,480 | 64,535 |
Basic And Earnings Per Share [Abstract] | ||
Basic | $ 0.01 | $ 0.19 |
Diluted | $ 0.01 | $ 0.14 |
Earnings Per Share and Equity_2
Earnings Per Share and Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | |||||
Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Jan. 31, 2020 | Mar. 31, 2023 | Mar. 31, 2022 | |
Class of Stock [Line Items] | |||||||
Dividend declared | $ 252 | $ 198 | |||||
Preferred stock, liquidation preference | $ 0.8 | $ 0.8 | |||||
Common stock, convertible, conversion price | $ 0.15091 | ||||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 0 | 397 | |||||
Percentage of the diluted capital stock | 26.90% | ||||||
Treasury Stock, Common [Member] | |||||||
Class of Stock [Line Items] | |||||||
Share Based Arrangement Cash Payment For Stock Options Cancellation | $ 969 | ||||||
Series C Redeemable Convertible Preferred Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Temporary Equity:Conversion Cap Excess Shares | 4,000 | ||||||
Dividend declared | $ 198 | ||||||
Cumulative quarterly preferred stock dividend rate percentage | 6% | ||||||
Temporary Equity, Shares Outstanding | 4,000,000 | 4,000,000 | 4,000,000 | ||||
Common stock converted | 16,500 | ||||||
Conversion cap excess dividend | $ 54 | ||||||
Series C Redeemable Convertible Preferred Stock [Member] | Subsequent Event [Member] | |||||||
Class of Stock [Line Items] | |||||||
Increase or decrease in rate of preferential dividends | 1% | ||||||
Series C Preferred Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Temporary Equity:Conversion Cap Excess Shares | 3,245 | ||||||
Cumulative quarterly preferred stock dividend rate percentage | 0.50% | ||||||
Temporary Equity, Shares Outstanding | 755 | 755 | |||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 0 | 397 | |||||
Common stock converted | 16,500 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Summary of Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Supplemental Cash Flow Elements [Abstract] | ||
Cash and cash equivalents | $ 22,509 | $ 33,333 |
Restricted Cash | 671 | 849 |
Total cash, cash equivalents, and restricted cash | $ 23,180 | $ 34,182 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Business Acquisition [Line Items] | ||
Cash payments for interest | $ 556 | $ 595 |
Cash payments for income taxes | 45 | 6 |
Cash payments included in the measurement of lease liabilities related to operating leases | $ 1,415 | $ 1,490 |
Intangible Assets - Components
Intangible Assets - Components of Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Trade names and air carrier certificate | $ 5,300 | $ 5,300 |
Total | $ 5,300 | $ 5,300 |
Stock Repurchase Program- Addit
Stock Repurchase Program- Additional Information (Detail) - Common Stock [Member] - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Mar. 30, 2021 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Stock Repurchased During Period, Shares | (470,000) | (6,262,000) | ||
Stock Repurchase Program [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock Repurchase Program, Authorized Amount in First Calendar Month | $ 1,000 | |||
Stock Repurchase Program, Authorized Amount to be Repurchased Each Month | 1,000 | |||
Stock Repurchased During Period, Shares | 470 | 6,262 | ||
Stock Repurchase Program [Member] | Restricted Cash [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Total cash | $ 296 | $ 475 |