Cover
Cover | 6 Months Ended |
Jun. 30, 2021shares | |
Document Information [Line Items] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Transition Report | false |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 2021 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q2 |
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 | 54,269,833 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 34,076 | $ 130,373 |
Restricted cash | 932 | 820 |
Marketable securities | 118,284 | |
Accounts receivable, net | 11,777 | 7,977 |
Spare parts and supplies, net | 5,115 | 5,937 |
Contract costs | 504 | 433 |
Prepaid expenses and other | 5,670 | 2,310 |
Total Current Assets | 176,358 | 147,850 |
Property and Equipment | ||
Flight property and equipment | 258,925 | 258,981 |
Ground property and equipment | 8,028 | 8,127 |
Less accumulated depreciation and amortization | (130,663) | (117,717) |
Net Property and Equipment | 136,290 | 149,391 |
Other Assets | ||
Operating lease right-of-use asset | 20,609 | 8,582 |
Intangibles | 5,300 | 5,300 |
Long-term investments | 4,275 | 4,275 |
Long-term contract costs | 351 | 566 |
Long-term notes receivable | 45,411 | 32,440 |
Other | 3,212 | 2,049 |
Total Other Assets | 79,158 | 53,212 |
Total Assets | 391,806 | 350,453 |
Current Liabilities | ||
Accounts payable | 13,431 | 11,773 |
Accrued payroll and employee benefits | 13,504 | 14,761 |
Current portion of operating lease liability | 4,917 | 1,361 |
Other accrued expenses | 325 | 345 |
Contract liabilities | 40,057 | 18,443 |
Income taxes payable | 0 | 107 |
Current portion of long-term debt (stated principal amount of $12,238 as of June 30, 2021 and $20,922 as of December 31, 2020) | 14,618 | 23,652 |
Total Current Liabilities | 86,852 | 70,442 |
Other Long-Term Liabilities | ||
Long-term debt (stated principal amount of $67,259 as of June 30, 2021 and $86,066 as of December 31, 2020) | 74,119 | 94,186 |
Long-term promissory note | 4,275 | 4,275 |
Deferred tax liability | 6,348 | 6,200 |
Long-term operating lease liability | 12,995 | 4,351 |
Long-term contract liabilities | 4,818 | 7,780 |
Deferred revenues, net of current portion | 25,438 | 30,720 |
Other | 2,774 | 2,774 |
Total Long-Term Liabilities | 130,767 | 150,286 |
Total Liabilities | 217,619 | 220,728 |
Commitments and Contingencies (Note 8) | ||
Series C Convertible Redeemable Preferred Stock, $0.01 par value, 4,000,000 shares authorized, issued and outstanding as of June 30, 2021 and December 31, 2020 | 13,200 | 13,200 |
Stockholders' Equity | ||
Common Stock, $0.01 par value: 100,000,000 shares authorized and 55,481,140 issued; and 54,269,833 and 54,863,305 shares outstanding as of June 30, 2021 and December 31, 2020, respectively. | 555 | 555 |
Additional paid-in capital | 287,825 | 288,221 |
Retained deficit | (126,024) | (171,770) |
Cost of repurchased stock | (1,369) | (481) |
Total Stockholders' Equity | 160,987 | 116,525 |
Total Liabilities and Stockholders' Equity | $ 391,806 | $ 350,453 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current portion of long-term debt principal amount | $ 12,238 | $ 20,922 |
Non-current portion of long term debt principal amount | $ 67,259 | $ 86,066 |
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 | 54,269,833 | 54,863,305 |
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 ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Operating Revenues | ||||
Total Operating Revenues | $ 52,860 | $ 16,775 | $ 102,634 | $ 83,854 |
Operating Expenses | ||||
Payroll and related costs | 25,012 | 23,407 | 47,763 | 55,033 |
Aircraft fuel and oil | 44 | 5 | 57 | 36 |
Aircraft maintenance, materials and repairs | 10,078 | 1,499 | 18,532 | 15,510 |
Aircraft rent | 44 | 2,411 | 67 | 5,763 |
Other rents | 1,263 | 1,541 | 2,185 | 3,050 |
Depreciation, amortization and obsolescence | 6,499 | 6,666 | 12,999 | 13,607 |
Payroll Support Program | (22,256) | (15,175) | (50,170) | (15,175) |
Purchased services and other | 5,572 | 4,366 | 11,340 | 10,411 |
Total Operating Expenses | 26,256 | 24,720 | 42,773 | 88,235 |
Income (Loss) From Operations | 26,604 | (7,945) | 59,861 | (4,381) |
Other Income (Expense) | ||||
Interest income | 456 | 40 | 826 | 265 |
Interest expense | (327) | (449) | (689) | (877) |
Gain (loss) on marketable securities | 43 | (14) | 0 | |
Gain on extinguishment of debt | 228 | 228 | ||
Other, net | 68 | 0 | 68 | (19) |
Total Other Income (Expense) | 468 | (409) | 419 | (631) |
Net Income (Loss) Before Taxes | 27,072 | (8,354) | 60,280 | (5,012) |
Income Tax Expense (Benefit) | 6,551 | (17) | 14,534 | (1,089) |
Net Income (Loss) | 20,521 | (8,337) | 45,746 | (3,923) |
Preferred stock dividends | 198 | 198 | 396 | 363 |
Net Income (loss) available to common stockholders | $ 20,323 | $ (8,535) | $ 45,350 | $ (4,286) |
Basic earnings (loss) per share | $ 0.37 | $ (0.16) | $ 0.83 | $ (0.08) |
Diluted earnings (loss) per share | $ 0.28 | $ (0.16) | $ 0.63 | $ (0.08) |
Weighted average common shares: | ||||
Basic | 54,466 | 54,863 | 54,664 | 54,863 |
Diluted | 71,455 | 54,863 | 71,613 | 54,863 |
Contract Revenues [Member] | ||||
Operating Revenues | ||||
Total Operating Revenues | $ 52,845 | $ 16,753 | $ 102,601 | $ 83,815 |
Contract Service and Other [Member] | ||||
Operating Revenues | ||||
Total Operating Revenues | $ 15 | $ 22 | $ 33 | $ 39 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Mezzanine Equity Series C Convertible Redeemable Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Repurchased Stock [Member] |
Beginning Balance at Dec. 31, 2019 | $ 77,521 | $ 555 | $ 288,980 | $ (211,533) | $ (481) | |
Beginning balance, Shares at Dec. 31, 2019 | 54,863 | 618 | ||||
Net income (loss) | (3,923) | (3,923) | ||||
Dividend | (363) | $ 198 | (363) | |||
Preferred Stock | $ 13,200 | |||||
Preferred Stock, Shares | 4,000 | |||||
Ending Balance at Jun. 30, 2020 | 73,235 | $ 13,398 | $ 555 | 288,617 | (215,456) | $ (481) |
Ending balance, shares at Jun. 30, 2020 | 4,000 | 54,863 | 618 | |||
Beginning Balance at Mar. 31, 2020 | 81,770 | $ 13,365 | $ 555 | 288,815 | (207,119) | $ (481) |
Beginning balance, Shares at Mar. 31, 2020 | 4,000 | 54,863 | 618 | |||
Net income (loss) | (8,337) | (8,337) | ||||
Dividend | (198) | $ 33 | (198) | |||
Ending Balance at Jun. 30, 2020 | 73,235 | $ 13,398 | $ 555 | 288,617 | (215,456) | $ (481) |
Ending balance, shares at Jun. 30, 2020 | 4,000 | 54,863 | 618 | |||
Beginning Balance at Dec. 31, 2020 | 116,525 | $ 13,200 | $ 555 | 288,221 | (171,770) | $ (481) |
Beginning balance, Shares at Dec. 31, 2020 | 4,000 | 54,863 | 618 | |||
Net income (loss) | 45,746 | 45,746 | ||||
Dividend | (396) | (396) | ||||
Repurchased stock | (888) | $ 593 | $ (888) | |||
Repurchased stock, Shares | (593) | |||||
Ending Balance at Jun. 30, 2021 | 160,987 | $ 13,200 | $ 555 | 287,825 | (126,024) | $ (1,369) |
Ending balance, shares at Jun. 30, 2021 | 4,000 | 54,270 | 1,211 | |||
Beginning Balance at Mar. 31, 2021 | 141,552 | $ 13,200 | $ 555 | 288,023 | (146,545) | $ (481) |
Beginning balance, Shares at Mar. 31, 2021 | 4,000 | 54,863 | 618 | |||
Net income (loss) | 20,521 | 20,521 | ||||
Dividend | (198) | $ 0 | (198) | |||
Repurchased stock | (888) | $ 593 | $ (888) | |||
Repurchased stock, Shares | (593) | |||||
Ending Balance at Jun. 30, 2021 | $ 160,987 | $ 13,200 | $ 555 | $ 287,825 | $ (126,024) | $ (1,369) |
Ending balance, shares at Jun. 30, 2021 | 4,000 | 54,270 | 1,211 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash Flows From Operating Activities | ||
Net income (loss) | $ 45,746 | $ (3,923) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation, amortization and obsolescence allowance | 12,999 | 13,607 |
Aircraft acquisition | 786 | |
Amortization of contract costs | (1,346) | (1,866) |
Amortization of engine overhauls | 724 | 815 |
Deferred income taxes | 148 | (4) |
Loss on disposition of property and equipment | 42 | 241 |
Loss on marketable securities | 14 | 0 |
Gain in extinguishment of debt | (228) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (3,530) | (571) |
Notes receivable | (12,971) | 0 |
Spare parts and supplies | 462 | (141) |
Prepaid expenses and other | (4,523) | (1,837) |
Operating lease right-of-use asset | 173 | 3,375 |
Accounts payable | 1,658 | (8,179) |
Accrued payroll and employee benefits | (1,257) | (819) |
Other accrued expenses | (20) | 839 |
Long-term deferred revenue | (5,282) | 20,979 |
Payroll Support Program deferred credit | 5,324 | |
Contract liabilities | 19,998 | (1,701) |
Income taxes payable | (107) | (40) |
Other long-term liabilities | 0 | 647 |
Net Cash Provided by Operating Activities | 52,700 | 27,532 |
Cash Flows From Investing Activities | ||
Additions to property and equipment | (171) | (6,379) |
Proceeds on disposition of property and equipment | 11 | 5 |
Investments in marketable securities | (118,568) | 0 |
Net Cash Used in Investing Activities | (118,728) | (6,374) |
Cash Flows From Financing Activities | ||
Repayments of long-term debt | (28,873) | |
Proceeds from note payable | 10,000 | |
Dividends paid | (396) | (165) |
Repurchase of common stock | (888) | |
Net Cash (Used in) Provided by Financing Activities | (30,157) | 9,835 |
(Decrease) Increase in Cash, Cash Equivalents and Restricted Cash | (96,185) | 30,993 |
Cash, Cash Equivalents and Restricted Cash, beginning of period | 131,193 | 70,273 |
Cash, Cash Equivalents and Restricted Cash, end of period | $ 35,008 | $ 101,266 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Basis of Presentation The accompanying unaudited 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 a non-operating entity 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 notes to unaudited consolidated 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 unaudited consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary to present fairly 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 unaudited consolidated financial statements are presented in thousands except per share amounts. These unaudited 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 (COVID-19) . 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. The airline business is operated entirely through Air Wisconsin, which is an independent regional air carrier that is engaged in the business of providing scheduled passenger service under a capacity purchase agreement (United capacity purchase agreement) with United Airlines, Inc. (United) that was entered into in February 2017 and amended in October 2020 and April 2021. United is currently Air Wisconsin’s sole airline partner. For additional information, refer to Note 3, Capacity Purchase Agreement with United Air Wisconsin operates as a United Express carrier with a significant presence at both Chicago O’Hare and Washington-Dulles, two of United’s key domestic hubs. Contract Revenues The Company recognizes revenue under the United capacity purchase agreement over time as services are provided. United pays Air Wisconsin a fixed rate for each departure and block hour (measured from takeoff to landing, including taxi time), and a fixed amount per aircraft per day, with incentive payments available primarily based on flight completion, on-time 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 the date of this filing, these payments are reconciled through December 2020. As of June 30, 2021, United owed Air Wisconsin $5,346, which is recorded in accounts receivable, net, on the unaudited consolidated balance sheets. Under the United capacity purchase agreement, Air Wisconsin is also eligible to receive incentive compensation upon the achievement of certain performance criteria. The incentives are defined in the agreement and performance is measured on a monthly basis. At the end of each month during the term of the agreement, Air Wisconsin calculates the incentives achieved during that period and recognizes revenue accordingly, subject to the variable constraint guidance under Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 606, Revenue from Contracts with Customers As discussed above, Air Wisconsin is paid a fixed amount per aircraft per day for each month during the term of the United capacity purchase 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 United capacity purchase agreement. Due to the material decrease in completed flights for the three and six months ended June 30, 2021 as compared to levels prior to the COVID-19 revenues The current portion of deferred fixed is recorded as part of contract liabilities, and the long-term portion of deferred fixed is recorded as deferred revenues on the consolidated balance sheets. Consistent with the analysis above, for the three and six months ended June 30, 2021, Air Wisconsin also recognized less non-refundable upfront fee revenue, as well as lower fulfillment costs, both of which are being amortized over the remaining term of the United capacity purchase agreement in proportion to flights flown. During the three and six months ended June 30, 2021, Air Wisconsin recorded m The amount of revenues The CPA Amendment provided, among other things, for the payment or accrual of certain amounts by United to Air Wisconsin based on scheduling benchmarks. In conjunction with the significant reduction in departures and block hours resulting from the COVID-19 Other Revenues Other revenues primarily consist of the sales of parts to other airlines and are immaterial in all periods presented. The transaction price for the sale of these parts generally is fair market value. Impairment of The Company evaluates long-lived and intangible assets for potential impairment and records impairment losses when events and circumstances indicate the assets might be impaired. 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 matters such 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 consolidated financial statements in the future. The Company conducted a qualitative impairment assessment of its long-lived and intangible assets and determined that no quantitative impairment tests were required to be performed as of June 30, 2021. Concentration of Customer Risk United is currently Air Wisconsin’s sole airline partner. Substantially all the Company’s revenues for the three and six months ended June 30, 2021 and 2020 were derived from the United capacity purchase agreement. For additional information, refer to Note 3, Capacity Purchase Agreement with United 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, particularly in light of the impact of the COVID-19 pandemic on the Company’s business and industry. Restricted Cash As of June 30, 2021, the Company had a restricted cash balance of $ 932 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 Accounting Standards Codification (ASC) Topic 321, Investments-Equity Securities The calculation of net unrealized gains and losses that relate to marketable securities held as of June 30, 2021 is as follows: Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Net gains (losses) recognized during the period on equity securities $ 43 $ (14 ) Less: Net losses recognized during the period on equity securities sold during the period (40 ) (40 ) Unrealized gains recognized during the period on equity securities held as of June 30, 2021 $ 83 $ 26 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 interest rates available to the Company for similar obligations. 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 annually, and it is possible that an asset or liability may be classified differently from year to year. The table below sets forth the Company’s classification of marketable securities and long-term investments as of June 30, 2021: Total Level 1 Level 2 Level 3 Marketable securities – exchange-traded funds and mutual funds $ 118,284 $ 118,284 $ — $ — Long-term investments – bonds (see Note 6) 4,275 — 4,275 — Total $ 122,559 $ 118,284 $ 4,275 $ — Recently Adopted Accounting Pronouncement In August 2020, FASB issued ASU No. 2020-06, Debt (Subtopic 470-20); 815-40) 2020-06). 2020-06 Upcoming Accounting Pronouncement In June 2016, FASB issued ASU 2016-13, Financial Instruments—Credit Losses Measurement of Credit Losses on Financial Instruments 2016-13). 2016-13 2016-13 2016-13 |
Liquidity
Liquidity | 6 Months Ended |
Jun. 30, 2021 | |
Text Block [Abstract] | |
Liquidity | 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. Impact of the COVID-19 As of the date of this filing, there continue to be widespread concerns regarding the ongoing impacts and disruptions caused by the COVID-19 COVID-19 COVID-19 COVID-19 v Reduction in Demand for Air Travel Public concerns about the COVID-19 virus, as well as the various governmental guidelines and restrictions adopted to limit the spread of the COVID-19 virus, have had a material adverse impact on passenger demand for air travel since the beginning of the pandemic. While passenger demand for air travel has increased in recent months as a result of the easing of certain of these guidelines and restrictions, as well as expanded availability and adoption of vaccines, United has stated that it expects demand will remain suppressed in 2021. As an example, United’s scheduled capacity for the three months ended June 30, 2021 was approximately lower than its scheduled Air Wisconsin’s monthly departures and scheduled block hours have been gradually increasing on an absolute basis since June 2020, and the preliminary schedules received from United reflect that Air Wisconsin’s monthly departures and scheduled block hours may continue to increase through the fourth quarter. However, these preliminary schedules are likely to be revised and there can be no assurance that this trend will continue. United Capacity Purchase Agreement Since a portion of the Company’s revenues is fixed due to the structure of the United capacity purchase agreement, the impact of the COVID-19 COVID-19 Summary of Significant Accounting Policies Cost Reduction Initiatives The Company implemented cost reduction initiatives seeking to mitigate the impact of the COVID-19 (1) Reduced or deferred employee-related costs, including: (i) Offered voluntary short-term unpaid leaves to employees and furloughing certain employees, and (ii) Deferred the employer’s portion of employees’ social security tax payments. (2) Reduced other non-employee (i) Delayed planned non-essential (ii) Delayed non-essential (iii) Sought concessions from third-party suppliers, and (iv) Reduced or suspending certain discretionary spending. While these initiatives reduced the Company’s expenses during the three months ended June 30, 2021, the Company expects its expenses to increase in future periods as the number of block hours and departures increase under the United capacity purchase agreement. Paycheck Protection Program In addition to cost reduction initiatives, Air Wisconsin’s receipt of governmental assistance has mitigated to some extent the adverse impacts of the COVID-19 In April 2020, Air Wisconsin received a $10,000 loan (SBA Loan) under the small business Paycheck Protection Program (PPP) established under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and administered by the Small Business Administration (SBA). The application for this loan required Air Wisconsin to certify in good faith that current economic uncertainty made the loan request necessary to support the ongoing operations of Air Wisconsin. Air Wisconsin was also required to certify that the loan funds would be used to retain workers and maintain payroll, or to make mortgage payments, lease payments, and utility payments. The SBA Loan bears interest at a rate of 1.0% per annum. The SBA Loan originally had a two-year and monthly principal and interest payments were originally deferred for six months after the date of the loan. Pursuant to the Flexibility Act adopted in June 2020 (Flexibility Act), the maturity date may be, but has not yet been, extended to 2025, and the interest deferral period has been extended to September 2021 based on the Company’s estimate of when the SBA will make a decision with respect to loan forgiveness. The SBA Loan may be prepaid at any time without penalty. Under the CARES Act, Air Wisconsin can apply for and be granted forgiveness for all or a portion of the SBA Loan. Such forgiveness, if any, will be determined, subject to limitations, based on the use of the loan proceeds for specified purposes, provided that not more than 40% of the amount may be for non-payroll Payroll Support Program In April 2020, Air Wisconsin entered into a Payroll Support Program Agreement (PSP-1 Agreement) with respect to payroll support (Treasury Payroll Support) from the U.S. Department of the Treasury (Treasury) under the payroll support program (Payroll Support Program) provided by the CARES Act. Pursuant to the Payroll Support Program, Air Wisconsin received approximately In December 2020, the federal Consolidated Appropriations Act of 2021 (PSP Extension Law) was adopted, which provides for additional payroll support to eligible air carriers. In March 2021, pursuant to the PSP Extension Law, Air Wisconsin entered into a Payroll Support Program Extension Agreement with the Treasury (the PSP-2 PSP-1 PSP-2 In March 2021, the federal American Rescue Plan Act of 2021 (American Rescue Plan) was adopted, which provided further payroll support to eligible air carriers. In June 2021, pursuant to the American Rescue Plan, Air Wisconsin entered into a Payroll Support Program 3 Agreement with the Treasury (the PSP-3 PSP-1 PSP-2 PSP-1 PSP-2 PSP-3 The PSP Agreements contain various covenants, including that (i) the payroll support proceeds must be used exclusively for the payment of wages, salaries and benefits, (ii) Air Wisconsin cannot involuntarily terminate or furlough any employee or reduce any employee’s pay rates or benefits without that employee’s consent, in any case prior to certain dates, (iii) Air Wisconsin cannot pay total compensation to certain employees in excess of certain total compensation caps, (iv) Air Wisconsin cannot pay dividends or make other capital distributions prior to certain dates, and (v) neither Air Wisconsin nor any of its affiliates can purchase an equity security of Air Wisconsin or any direct or indirect parent company of Air Wisconsin that is listed on a national securities exchange prior to certain dates. If Air Wisconsin fails to comply with its obligations under these agreements, it may be required to repay some or all of the funds provided to it under these agreements. Any such default, acceleration, insolvency or failure to comply would likely have a material adverse effect on the Company’s business. In addition, the PSP Agreements authorize the Secretary of the Department of Transportation to impose certain air service obligations on recipients of payroll support until March 1, 2022. To date, no such service obligation has been imposed on Air Wisconsin. The Treasury commenced a routine audit of Air Wisconsin’s compliance with the terms of the PSP-1 Commitments and Contingencies The proceeds of the Treasury Payroll Support under the PSP Agreements are recorded in cash and cash equivalents when received and are recognized as a contra-expense under Payroll Support Program in the consolidated statements of operations over the periods for which the funds are intended to offset payroll expenses. In the three months ended June 30, 2021, Air Wisconsin received approximately $34,115 under the Payroll Support Program and the Company Program and the Company |
Capacity Purchase Agreement wit
Capacity Purchase Agreement with United | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Capacity Purchase Agreement with United | 3. Capacity Purchase In February 2017, Air Wisconsin entered into the United capacity purchase agreement with United to operate up to 65 CRJ-200 Under the CPA Amendment, the initial term of the agreement ends February 2023 . United has the option to extend the term for no less has two-year period subject to mutual agreement by Air Wisconsin and United as to economic terms. In April 2021, Air Wisconsin entered into a second amendment to the United capacity purchase agreement which addressed the scheduling of block hours permitted in the event United does not elect to exercise its extension rights within the agreement. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 4. Property and Equipment The following presents Air Wisconsin’s aircraft as of June 30, 2021 and June 30, 2020: June 30, 2021 Owned Leased CRJ-200 64 — June 30, 2020 Owned Leased CRJ-200 62 2 In January 2020, Harbor completed an asset acquisition from Southshore Leasing, LLC (Southshore Leasing), through its affiliates (the Southshore Affiliates and, together with Southshore Leasing, Southshore), of three CRJ-200 Related Party Transactions In May 2020, Air Wisconsin completed an acquisition of eight CRJ-200 In September 2020, Air Wisconsin completed an acquisition of two CRJ-200 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 5. Income Taxes The Company’s effective tax rate for the three months ended June 30, 2021 was 24.2%. The Company’s effective tax rate for the three months ended June 30, 2021 varied from the federal statutory rate of 21.0% primarily due to the provision for state income taxes and the impact of non-deductible The Company’s effective tax rate for the six months ended June 30, 2021 was 24.1%. The Company’s effective tax rate for the six months ended June 30, 2021 varied from the federal statutory rate of 21.0% primarily due to the provision for state income taxes and the impact of non-deductible The Company’s effective tax rate for the three months ended June 30, 2020 was 0.2%. The Company’s effective tax rate for the three months ended June 30, 2020 varied from the federal statutory rate of 21.0% primarily due to the provision for state income taxes, the reversal of valuation allowances on federal and state deferred tax assets, and the impact of non-deductible The Company’s effective tax rate for the six months ended June 30, 2020 was 21.7%. The Company’s effective tax rate for the six months ended June 30, 2020 varied from the federal statutory rate of 21.0% primarily due to the provision for state income taxes, the reversal of valuation allowances on federal and state deferred tax assets, and the impact of non-deductible |
Debt
Debt | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | 6. Debt Long-Term Debt Long-term debt consists of the following (with interest rates, as of the dates presented): June 30, December 31, Notes, due December 31, 2025 (4.0%) $ 68,740 $ 80,850 Credit Agreement, due through 2022 (5.0%) 9,997 26,988 SBA Loan, due 2025 (1.0%) 10,000 10,000 Total debt 88,737 117,838 Less: current maturities 14,618 23,652 Total Long-Term Debt $ 74,119 $ 94,186 In April 2020, in connection with the SBA Loan, Air Wisconsin issued to a lender a promissory note for an aggregate principal amount of $10,000. The amount outstanding under the note may be forgiven under certain circumstances. The Company has recorded the value of the promissory note on a relative fair value basis as $7,759 of long-term debt and $2,241 of current portion of long-term debt on the consolidated balance sheets. For additional information, refer to Note 2, Liquidity In June 2021, Air Wisconsin prepaid approximately $10,500 of the principal amount and $910 of capitalized interest outstanding under the Notes due December 31, 2025 , . Maturities of long-term debt for the periods subsequent to June 30, 2021, are as follows: Fiscal Year Amount July 2021 through December 2021 $ 2,084 2022 18,577 2023 11,897 2024 11,644 2025 44,535 Total $ 88,737 The various debt agreements include, among other provisions, certain covenants. As of June 30, 2021 and June 30, 2020, Air Wisconsin was in compliance with the covenants included in each of its debt agreements. 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 Fair Value of Financial Instruments |
Lease Obligations
Lease Obligations | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Lease Obligations | 7. Lease Obligations Air Wisconsin leases property and training simulators under operating leases. For leases with durations longer than 12 months, the Company recorded the related operating lease right-of-use Air Wisconsin has operating leases for training simulators and facility space including office space and maintenance facilities. The remaining lease terms for training simulators and facility space vary from 10 months to 13 years. Air Wisconsin’s operating leases with lease rates that are variable based on operating costs, use of the facilities or other variable factors are excluded from the Company’s right-of-use As of June 30, 2021, the Company’s right-of-use assets The table below presents operating lease related terms and discount rates as Weighted-average remaining lease term 4.04 years Weighted-average discount rate 5.71% Components of lease costs were as follows for the dates presented: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Operating lease costs $ 1,110 $ 2,548 $ 1,876 $ 6,864 Short-term lease costs 163 623 309 1,139 Variable lease costs 34 (88 ) 67 (59 ) Lease termination expense — 869 — 869 Total Lease Costs $ 1,307 $ 3,952 $ 2,252 $ 8,813 As of June 30, 2021, Air Wisconsin leased or subleased certain training simulators and facilities for terms of greater than 12 months. Rent expense recorded under all leases (including aircraft leases for the three months ended June 30, 2020) was $1,307 and $3,952 for the three months ended June 30, 2021 and June 30, 2020, respectively. Rent expense recorded under all leases (including aircraft leases for the six months ended June 30 The following table summarizes the future minimum rental payments required under operating leases that had initial or remaining non-cancelable lease Fiscal Year Amount July 2021 through December 2021 $ 2,949 2022 5,897 2023 5,712 2024 3,236 2025 2,525 Thereafter 579 Total lease payments 20,898 Less imputed interest (2,986 ) Total Lease Liabilities $ 17,912 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies Legal Proceedings The Company is subject to certain legal proceedings, which it considers routine to its business activities. As of June 30, 2021, the Company believes, after consultation with legal counsel, that the ultimate outcome of such legal proceedings, whether individually or in the aggregate, is not likely to have a material adverse effect on the Company’s financial position, results of operations or liquidity. 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 Payroll Support Program. The audit focused, among other things, on certain calculations used to determine the amount of Treasury Payroll Support Air Wisconsin was entitled to receive under the program. Air Wisconsin has disputed in good faith the Treasury’s interpretation of certain provisions of the application for Treasury Payroll Support and the PSP-1 PSP-2 PSP-3 PSP-2 PSP-3 PSP-1 Standby Letters of Credit As of June 30, 2021, 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. Air Wisconsin maintains a credit facility with a borrowing capacity of $810 for the issuance of such letters of credit as needed to support its operations. 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: Total July 2022 2023 2024 2025 Thereafter Aircraft Notes Principal $ 59,500 $ — $ 3,500 $ 7,000 $ 7,000 $ 42,000 $ — Aircraft Notes Interest 9,240 1,190 2,380 2,170 1,890 1,610 — Other Loans Principal 19,997 894 12,697 2,727 2,754 925 — Other Loans Interest 823 282 328 51 24 138 — Operating Lease Obligations 20,898 2,949 5,897 5,712 3,236 2,525 579 Total $ 110,458 $ 5,315 $ 24,802 $ 17,660 $ 14,904 $ 47,198 $ 579 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 a result of certain prepayments made under the Aircraft Notes in June 2021, no semi-annual installments are due prior to December 31, 2022. As of June 30, 2021, all of the Company’s long-term debt was subject to fixed interest rates. For additional information regarding the Aircraft Notes and Other Loans, refer to the section entitled “ Management’s Discussion and Analysis of Financial Condition and Results of Operations” Debt |
Related-Party Transactions
Related-Party Transactions | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | 9. Related-Party Transactions Southshore leased several aircraft and engines to Air Wisconsin pursuant to various operating lease agreements from April 2010 through January 2020. For the three and six months ended June 30, 2020, the Company paid $150 pursuant to certain aircraft and engine leases with Southshore. In January 2020, Harbor completed an acquisition from Southshore of three CRJ-200 Earnings Per Share and Equity 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 months ended June 30, 2021 and June 30, 2020. In June 2021, the Board of Directors agreed to pay Resource Holdings an annual fee of $150, payable monthly, which amount is in addition to the amount paid to Resource Holdings by AWAC. Harbor paid a total of $12.5 to Resource Holdings for each of the three months ended June 30, 2021. For additional information, refer to “ Certain Relationships and Related Transactions, and Director Independence |
Earnings Per Share and Equity
Earnings Per Share and Equity | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share and Equity | 10. Earnings Per Share Calculations of net income per common share for the dates presented were as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net income (loss) $ 20,521 $ (8,337 ) $ 45,746 $ (3,923 ) Preferred stock dividends 198 198 396 363 Net income (loss) applicable to common stockholders $ 20,323 $ (8,535 ) $ 45,350 $ (4,286 ) Weighted average common shares outstanding Shares used in calculating basic earnings per share 54,466 54,863 54,664 54,863 Stock option 489 — 449 — Series C Preferred 16,500 — 16,500 — Shares used in calculating diluted earnings per share $ 71,455 $ 54,863 $ 71,613 $ 54,863 Earnings (loss) allocated to common stockholders per common share Basic $ 0.37 $ (0.16 ) $ 0.83 $ (0.08 ) Diluted $ 0.28 $ (0.16 ) $ 0.63 $ (0.08 ) Basic earnings per common share 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 and 449 shares of common stock under the treasury stock method for the three and six months ended June 30, 2021, respectively. In loss periods, potentially dilutive shares associated with the stock option and Series C Preferred were not included in the calculation above, as they would have an anti-dilutive effect on the computation of earnings per share. Series C Preferred In January 2020, Harbor Harbor The Series C Preferred accrues dividends at the rate of 6.0% per annum, which are cumulative and compound quarterly to the extent dividends have not been declared by the Board of Directors and paid by Harbor From and after December 31, 2023, upon the election of holders of a majority of the outstanding Series C Preferred, the rate of the Preferential Dividends shall be increased by an additional 1.0% per annum per share for each and every six-month Each share of Series C Preferred was initially convertible, at any time after issuance, into that number of shares of common stock determined by dividing the then applicable Series C Liquidation Amount (defined below) by $0.80, subject to certain adjustments set forth in the Certificate of Designations (Conversion Price). Pursuant to the Certificate of Designations, the Conversion Price shall be adjusted to equal the Weighted Average Price (as defined in the Certificate of Designations) of the common stock during the Reporting Adjustment Period. The “Reporting Adjustment Period” was the first 90-trading day Harbor 10-K 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 (as defined below) 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 the date of this filing, 755 shares of the Series C Preferred are immediately convertible into 16,500 shares of common stock (representing 23.4% of the fully diluted shares of capital stock of Harbor In the event of any liquidation, dissolution or winding up of Harbor , , At any time following the earliest of (a) the date that is four years after the earlier of the Reporting Date (as defined in the Certificate of Designations) or (i) any merger or consolidation to which Harbor Harbor Harbor Harbor Harbor On both March 30, 2021 and June 30, 2021, the Board of Directors declared a dividend of $198 on the Series C Preferred, which was paid on March 31, 2021 and June 30, 2021 , respectively. Based on the applicable accounting guidance, Harbor the “if-converted” method The Company 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 | 6 Months Ended |
Jun. 30, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | 11. Supplemental Cash Flow Information Cash payments for interest for the six months ended June 30, 2021 and June 30, 2020 were $2,022 and $0, respectively. Cash payments for income taxes for the six months ended June 30, 2021 and June 30, 2020 were $17,784 and $0, respectively. Cash payments included in the measurement of lease liabilities related to operating leases were $1,761 for the six months ended June 30, 2021, and $2,995 for the six months ended June 30, 2020. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 12. Intangible Assets Intangible assets consist of the following as of the dates presented: June 30, 2021 December 31, 2020 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 | 6 Months Ended |
Jun. 30, 2021 | |
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 may 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 until such time as the board takes action to amend or terminate the program. 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 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Subsequent Events The Company evaluated the consolidated financial statements included in this Quarterly Report for subsequent events through August 13 • On July 6, 2021, Air Wisconsin received the second and final payment of $16,665 from the Treasury pursuant to the PSP-3 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited 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 a non-operating entity 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 notes to unaudited consolidated 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 unaudited consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary to present fairly 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 unaudited consolidated financial statements are presented in thousands except per share amounts. These unaudited 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 (COVID-19) . |
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. The airline business is operated entirely through Air Wisconsin, which is an independent regional air carrier that is engaged in the business of providing scheduled passenger service under a capacity purchase agreement (United capacity purchase agreement) with United Airlines, Inc. (United) that was entered into in February 2017 and amended in October 2020 and April 2021. United is currently Air Wisconsin’s sole airline partner. For additional information, refer to Note 3, Capacity Purchase Agreement with United Air Wisconsin operates as a United Express carrier with a significant presence at both Chicago O’Hare and Washington-Dulles, two of United’s key domestic hubs. |
Contract Revenues | Contract Revenues The Company recognizes revenue under the United capacity purchase agreement over time as services are provided. United pays Air Wisconsin a fixed rate for each departure and block hour (measured from takeoff to landing, including taxi time), and a fixed amount per aircraft per day, with incentive payments available primarily based on flight completion, on-time 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 the date of this filing, these payments are reconciled through December 2020. As of June 30, 2021, United owed Air Wisconsin $5,346, which is recorded in accounts receivable, net, on the unaudited consolidated balance sheets. Under the United capacity purchase agreement, Air Wisconsin is also eligible to receive incentive compensation upon the achievement of certain performance criteria. The incentives are defined in the agreement and performance is measured on a monthly basis. At the end of each month during the term of the agreement, Air Wisconsin calculates the incentives achieved during that period and recognizes revenue accordingly, subject to the variable constraint guidance under Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 606, Revenue from Contracts with Customers As discussed above, Air Wisconsin is paid a fixed amount per aircraft per day for each month during the term of the United capacity purchase 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 United capacity purchase agreement. Due to the material decrease in completed flights for the three and six months ended June 30, 2021 as compared to levels prior to the COVID-19 revenues The current portion of deferred fixed is recorded as part of contract liabilities, and the long-term portion of deferred fixed is recorded as deferred revenues on the consolidated balance sheets. Consistent with the analysis above, for the three and six months ended June 30, 2021, Air Wisconsin also recognized less non-refundable upfront fee revenue, as well as lower fulfillment costs, both of which are being amortized over the remaining term of the United capacity purchase agreement in proportion to flights flown. During the three and six months ended June 30, 2021, Air Wisconsin recorded m The amount of revenues The CPA Amendment provided, among other things, for the payment or accrual of certain amounts by United to Air Wisconsin based on scheduling benchmarks. In conjunction with the significant reduction in departures and block hours resulting from the COVID-19 |
Other Revenues | Other Revenues Other revenues primarily consist of the sales of parts to other airlines and are immaterial in all periods presented. The transaction price for the sale of these parts generally is fair market value. |
Impairment of Long-Lived and Intangible Assets | Impairment of The Company evaluates long-lived and intangible assets for potential impairment and records impairment losses when events and circumstances indicate the assets might be impaired. 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 matters such 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 consolidated financial statements in the future. The Company conducted a qualitative impairment assessment of its long-lived and intangible assets and determined that no quantitative impairment tests were required to be performed as of June 30, 2021. |
Concentration of Customer Risk | Concentration of Customer Risk United is currently Air Wisconsin’s sole airline partner. Substantially all the Company’s revenues for the three and six months ended June 30, 2021 and 2020 were derived from the United capacity purchase agreement. For additional information, refer to Note 3, Capacity Purchase Agreement with United |
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, particularly in light of the impact of the COVID-19 pandemic on the Company’s business and industry. |
Restricted Cash | Restricted Cash As of June 30, 2021, the Company had a restricted cash balance of $ 932 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 Accounting Standards Codification (ASC) Topic 321, Investments-Equity Securities The calculation of net unrealized gains and losses that relate to marketable securities held as of June 30, 2021 is as follows: Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Net gains (losses) recognized during the period on equity securities $ 43 $ (14 ) Less: Net losses recognized during the period on equity securities sold during the period (40 ) (40 ) Unrealized gains recognized during the period on equity securities held as of June 30, 2021 $ 83 $ 26 |
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 interest rates available to the Company for similar obligations. 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 annually, and it is possible that an asset or liability may be classified differently from year to year. The table below sets forth the Company’s classification of marketable securities and long-term investments as of June 30, 2021: Total Level 1 Level 2 Level 3 Marketable securities – exchange-traded funds and mutual funds $ 118,284 $ 118,284 $ — $ — Long-term investments – bonds (see Note 6) 4,275 — 4,275 — Total $ 122,559 $ 118,284 $ 4,275 $ — |
Recently Adopted Accounting Pronouncement | Recently Adopted Accounting Pronouncement In August 2020, FASB issued ASU No. 2020-06, Debt (Subtopic 470-20); 815-40) 2020-06). 2020-06 |
Upcoming Accounting Pronouncement | Upcoming Accounting Pronouncement In June 2016, FASB issued ASU 2016-13, Financial Instruments—Credit Losses Measurement of Credit Losses on Financial Instruments 2016-13). 2016-13 2016-13 2016-13 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 is as follows: Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Net gains (losses) recognized during the period on equity securities $ 43 $ (14 ) Less: Net losses recognized during the period on equity securities sold during the period (40 ) (40 ) Unrealized gains recognized during the period on equity securities held as of June 30, 2021 $ 83 $ 26 |
Summary of company's classification of Marketable Securities And Long Term Investments | The table below sets forth the Company’s classification of marketable securities and long-term investments as of June 30, 2021: Total Level 1 Level 2 Level 3 Marketable securities – exchange-traded funds and mutual funds $ 118,284 $ 118,284 $ — $ — Long-term investments – bonds (see Note 6) 4,275 — 4,275 — Total $ 122,559 $ 118,284 $ 4,275 $ — |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Company's Aircrafts | The following presents Air Wisconsin’s aircraft as of June 30, 2021 and June 30, 2020: June 30, 2021 Owned Leased CRJ-200 64 — June 30, 2020 Owned Leased CRJ-200 62 2 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consists of the following (with interest rates, as of the dates presented): June 30, December 31, Notes, due December 31, 2025 (4.0%) $ 68,740 $ 80,850 Credit Agreement, due through 2022 (5.0%) 9,997 26,988 SBA Loan, due 2025 (1.0%) 10,000 10,000 Total debt 88,737 117,838 Less: current maturities 14,618 23,652 Total Long-Term Debt $ 74,119 $ 94,186 |
Schedule of Maturities of Long-Term Debt | Maturities of long-term debt for the periods subsequent to June 30, 2021, are as follows: Fiscal Year Amount July 2021 through December 2021 $ 2,084 2022 18,577 2023 11,897 2024 11,644 2025 44,535 Total $ 88,737 |
Lease Obligations (Tables)
Lease Obligations (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Summary of Operating Lease Related Terms and Discount Rates | The table below presents operating lease related terms and discount rates as Weighted-average remaining lease term 4.04 years Weighted-average discount rate 5.71% |
Schedule of Component of Lease Cost | Components of lease costs were as follows for the dates presented: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Operating lease costs $ 1,110 $ 2,548 $ 1,876 $ 6,864 Short-term lease costs 163 623 309 1,139 Variable lease costs 34 (88 ) 67 (59 ) Lease termination expense — 869 — 869 Total Lease Costs $ 1,307 $ 3,952 $ 2,252 $ 8,813 |
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 lease Fiscal Year Amount July 2021 through December 2021 $ 2,949 2022 5,897 2023 5,712 2024 3,236 2025 2,525 Thereafter 579 Total lease payments 20,898 Less imputed interest (2,986 ) Total Lease Liabilities $ 17,912 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Cash Obligations | The following table sets forth the Company’s cash obligations for the periods presented: Total July 2022 2023 2024 2025 Thereafter Aircraft Notes Principal $ 59,500 $ — $ 3,500 $ 7,000 $ 7,000 $ 42,000 $ — Aircraft Notes Interest 9,240 1,190 2,380 2,170 1,890 1,610 — Other Loans Principal 19,997 894 12,697 2,727 2,754 925 — Other Loans Interest 823 282 328 51 24 138 — Operating Lease Obligations 20,898 2,949 5,897 5,712 3,236 2,525 579 Total $ 110,458 $ 5,315 $ 24,802 $ 17,660 $ 14,904 $ 47,198 $ 579 |
Earnings Per Share and Equity (
Earnings Per Share and Equity (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net income (loss) $ 20,521 $ (8,337 ) $ 45,746 $ (3,923 ) Preferred stock dividends 198 198 396 363 Net income (loss) applicable to common stockholders $ 20,323 $ (8,535 ) $ 45,350 $ (4,286 ) Weighted average common shares outstanding Shares used in calculating basic earnings per share 54,466 54,863 54,664 54,863 Stock option 489 — 449 — Series C Preferred 16,500 — 16,500 — Shares used in calculating diluted earnings per share $ 71,455 $ 54,863 $ 71,613 $ 54,863 Earnings (loss) allocated to common stockholders per common share Basic $ 0.37 $ (0.16 ) $ 0.83 $ (0.08 ) Diluted $ 0.28 $ (0.16 ) $ 0.63 $ (0.08 ) |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consist of the following as of the dates presented: June 30, 2021 December 31, 2020 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 | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Summary of Significant Accounting Policies [Line Items] | |||||
Marketable securities | $ 118,284 | $ 0 | $ 118,284 | $ 0 | |
Deferred revenue recognized | 1,010 | 1,983 | |||
Revenue, Performance Obligation | 5,736 | 12,972 | |||
Accrued Liabilities by United | 11,048 | 11,048 | |||
Cash Paid, Liabilities by United | 670 | ||||
Long-term note receivable | $ 45,411 | $ 45,411 | $ 32,440 | ||
Notes Receivable Instrument, Interest Rate | 4.50% | 4.50% | 4.50% | ||
Notes Receivable Instrument, Maturity Date | Feb. 28, 2023 | ||||
Interest Receivable | $ 1,114 | $ 1,114 | |||
Impairment of Intangible Assets, Indefinite-lived | 0 | ||||
Restricted Cash | 932 | 932 | |||
October 2020 Amendment [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Deferred recognized revenue | 324 | 0 | 637 | 0 | |
Deferred revenue current | 2,225 | 4,698 | 2,225 | 4,698 | |
Deferred Revenue, Noncurrent | 1,548 | 3,270 | 1,548 | 3,270 | |
Deferred cash payable | 4,411 | 4,411 | |||
Air Wisconsin [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Deferred recognized revenue | 7,440 | 22,484 | 15,351 | 22,484 | |
Deferred revenue current | 33,133 | 33,133 | |||
Deferred Revenue, Noncurrent | 25,438 | 25,438 | |||
Upfront fee revenue | 685 | 271 | 1,346 | 1,204 | |
Fulfillment costs | 73 | $ 29 | 144 | $ 129 | |
Accounts Receivable, after Allowance for Credit Loss | $ 5,346 | $ 5,346 |
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 | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | |
Marketable Securities, Gain (Loss) [Abstract] | |||
Net gains (losses) recognized during the period on equity securities | $ 43 | $ (14) | $ 0 |
Less: Net losses recognized during the period on equity securities sold during the period | (40) | (40) | |
Unrealized gains recognized during the period on equity securities held as of June 30, 2021 | $ 83 | $ 26 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of company's classification of Marketable Securities and long term investments (Detail) $ in Thousands | Jun. 30, 2021USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Financial Instruments, Owned, at Fair Value | $ 122,559 |
Level 1 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Financial Instruments, Owned, at Fair Value | 118,284 |
Level 2 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Financial Instruments, Owned, at Fair Value | 4,275 |
Level 3 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Financial Instruments, Owned, at Fair Value | |
Marketable securities – exchange-traded funds and mutual funds | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Financial Instruments, Owned, at Fair Value | 118,284 |
Marketable securities – exchange-traded funds and mutual funds | Level 1 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Financial Instruments, Owned, at Fair Value | 118,284 |
Marketable securities – exchange-traded funds and mutual funds | Level 2 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Financial Instruments, Owned, at Fair Value | |
Marketable securities – exchange-traded funds and mutual funds | Level 3 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Financial Instruments, Owned, at Fair Value | |
Long-term investments – bonds | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Financial Instruments, Owned, at Fair Value | 4,275 |
Long-term investments – bonds | Level 1 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Financial Instruments, Owned, at Fair Value | |
Long-term investments – bonds | Level 2 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Financial Instruments, Owned, at Fair Value | 4,275 |
Long-term investments – bonds | Level 3 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Financial Instruments, Owned, at Fair Value |
Liquidity - Additional Informat
Liquidity - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | |
Liquidity Uncertainty And Going Concern [Line Items] | ||||
Interest rate | 4.50% | 4.50% | 4.50% | |
Percentage of United's reduced Scheduled capacity | 45.00% | 45.00% | ||
Small Business Administration Payroll Protection Program [Member] | Air Wisconsin [Member] | ||||
Liquidity Uncertainty And Going Concern [Line Items] | ||||
Term Loan Maturity | 2 years | |||
Interest rate | 1.00% | |||
Aggregate loan amount received | $ 10,000 | |||
Percentage of the forgiven loan amount that may be used for non payroll costs | 40.00% | |||
Treasury Department Payroll Support Program [Member] | ||||
Liquidity Uncertainty And Going Concern [Line Items] | ||||
Payroll Support Agreement Awardable Amount | $ 42,185 | |||
Psp3 Agreement [Member] | Air Wisconsin [Member] | ||||
Liquidity Uncertainty And Going Concern [Line Items] | ||||
Payroll support program grant expected | $ 33,329 | $ 33,329 | ||
Cares Act Payroll Support Program [Member] | Air Wisconsin [Member] | ||||
Liquidity Uncertainty And Going Concern [Line Items] | ||||
Proceeds from cares act payroll support program grant received | 34,115 | 49,652 | ||
Payroll support program receivable | 518 | 518 | ||
Payroll support program contra expense | $ 22,256 | 50,170 | ||
Psp2 Agreement [Member] | Air Wisconsin [Member] | Minimum [Member] | ||||
Liquidity Uncertainty And Going Concern [Line Items] | ||||
Proceeds from cares act payroll support program grant received | $ 32,987 |
Capacity Purchase Agreement w_2
Capacity Purchase Agreement with United - Additional Information (Detail) - Aircraft | 1 Months Ended | 6 Months Ended |
Feb. 28, 2017 | Jun. 30, 2021 | |
Extension Period One [Member] | ||
Period of extension of the agreement | 2 years | |
Extension Period Two [Member] | ||
Period of extension of the agreement | 2 years | |
United Airlines [Member] | CRJ-200 [Member] | ||
Date of expiration of the agreement | Feb. 1, 2023 | |
United Airlines [Member] | CRJ-200 [Member] | Maximum [Member] | ||
Number of aircraft operated | 65 | 63 |
Property and Equipment - Summar
Property and Equipment - Summary of aircraft (Detail) - CRJ-200 [Member] - Aircraft | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Owned | 64 | 62 |
Leased | 2 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | May 20, 2020 | Sep. 30, 2020 |
Property, Plant and Equipment [Line Items] | ||
Aggregate purchase price for aircraft acquired | $ 3,000 | $ 818 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Line Items] | ||||
Effective income tax rate reconciliation percent total | 24.20% | 0.20% | 24.10% | 21.70% |
Effective Income Tax Rate, Federal statutory rate | 21.00% | 21.00% | 21.00% | 21.00% |
Covid Nineteen [Member] | Refund Of AMT Credit [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Discrete tax benefits | $ 936 |
Debt - Schedule Of Long Term De
Debt - Schedule Of Long Term Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Total debt | $ 88,737 | $ 117,838 |
Less: current maturities | 14,618 | 23,652 |
Total Long-Term Debt | 74,119 | 94,186 |
Notes Due December 31, 2025 [Member] | ||
Total debt | 68,740 | 80,850 |
Credit Agreements Due Through 2022 [Member] | ||
Total debt | 9,997 | 26,988 |
S B A Loan due 2025 [Member] | ||
Total debt | $ 10,000 | $ 10,000 |
Debt - Additional information (
Debt - Additional information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Apr. 30, 2020 | Jul. 31, 2003 | |
Operating lease right of use asset | $ 20,609 | $ 20,609 | $ 8,582 | ||
Long term debt, current portion | 14,618 | 14,618 | 23,652 | ||
Long-Term Debt | 74,119 | 74,119 | $ 94,186 | ||
Gain on extinguishment of debt | 228 | 228 | |||
Hangar [Member] | |||||
Operating lease right of use asset | 2,894 | 2,894 | |||
City of Milwaukee, Wisconsin variable rate Industrial Development Bonds [Member] | |||||
Aggregate principal amount | $ 4,275 | ||||
Paycheck Protection Program Notes [Member] | |||||
Aggregate principal amount | $ 10,000 | ||||
Long term debt, current portion | 2,241 | ||||
Long-Term Debt | $ 7,759 | ||||
Credit Agreements Due Through 2022 Prepaid [Member] | |||||
Aggregate principal amount | 16,991 | 16,991 | |||
Notes due December 31, 2025 Prepaid [Member] | |||||
Aggregate principal amount | 10,500 | $ 10,500 | |||
Capitalized interest outstanding | $ 910 |
Debt - Schedule of Maturities o
Debt - Schedule of Maturities of Long-term Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Maturities of Long-term Debt [Abstract] | ||
July 2021 through December 2021 | $ 2,084 | |
2022 | 18,577 | |
2023 | 11,897 | |
2024 | 11,644 | |
2025 | 44,535 | |
Total | $ 88,737 | $ 117,838 |
Lease Obligations - Additional
Lease Obligations - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |||||
Operating lease right of use asset | $ 20,609 | $ 20,609 | $ 8,582 | ||
Current portion of operating lease liability | 4,917 | 4,917 | 1,361 | ||
Long-term operating lease liability | 12,995 | 12,995 | $ 4,351 | ||
Cash payments included in the measurement of lease liabilities related to operating leases | 1,761 | $ 2,995 | |||
Operating lease rent expense | $ 1,307 | $ 3,952 | $ 2,252 | $ 8,813 | |
Minimum [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Lease term of training simulators | 12 months | 12 months | |||
Operating Lease Remaining Lease | 10 months | 10 months | |||
Maximum [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating Lease Remaining Lease | 13 years | 13 years |
Lease Obligations - Summary Of
Lease Obligations - Summary Of Weighted average Terms and Discount Rate For Operating Leases (Detail) | Jun. 30, 2021 |
Leases [Abstract] | |
Weighted-average remaining lease term | 4 years 14 days |
Weighted-average discount rate | 5.71% |
Lease Obligations - Schedule of
Lease Obligations - Schedule of Component Of Lease Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Lease, Cost [Abstract] | ||||
Operating lease costs | $ 1,110 | $ 2,548 | $ 1,876 | $ 6,864 |
Short-term lease costs | 163 | 623 | 309 | 1,139 |
Variable lease costs | 34 | (88) | 67 | (59) |
Lease termination expense | 869 | 869 | ||
Total Lease Costs | $ 1,307 | $ 3,952 | $ 2,252 | $ 8,813 |
Lease Obligations - Schedule _2
Lease Obligations - Schedule of Future Minimum Lease Payments Under Non-Cancelable Operating Leases (Detail) $ in Thousands | Jun. 30, 2021USD ($) |
Leases [Abstract] | |
July 2021 through December 2021 | $ 2,949 |
2022 | 5,897 |
2023 | 5,712 |
2024 | 3,236 |
2025 | 2,525 |
Thereafter | 579 |
Operating lease obligations, Total | 20,898 |
Less imputed interest | (2,986) |
Total Lease Liabilities | $ 17,912 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | Jun. 30, 2021USD ($)Letter_Of_Credit |
Other Commitments [Line Items] | |
Number of outstanding letters of credit | Letter_Of_Credit | 6 |
Air Wisconsin [Member] | |
Other Commitments [Line Items] | |
Outstanding credit facility | $ 810 |
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) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Contractual Obligation Fiscal Year Maturity [Line Items] | ||
Long-term debt, Total | $ 88,737 | $ 117,838 |
Long-term debt, due in 2021 | 2,084 | |
Long-term debt, due in 2022 | 18,577 | |
Long-term debt, due in 2023 | 11,897 | |
Long-term debt, due in 2024 | 11,644 | |
Long-term debt, due in 2025 | 44,535 | |
Operating lease obligations, Total | 20,898 | |
Operating lease obligations, due in 2021 | 2,949 | |
Operating lease obligations, due in 2022 | 5,897 | |
Operating lease obligations, due in 2023 | 5,712 | |
Operating lease obligations, due in 2024 | 3,236 | |
Operating lease obligations, due in 2025 | 2,525 | |
Operating lease obligations, due Thereafter | 579 | |
Total cash obligations | 110,458 | |
Total cash obligations, due in 2021 | 5,315 | |
Total cash obligations, due in 2022 | 24,802 | |
Total cash obligations, due in 2023 | 17,660 | |
Total cash obligations, due in 2024 | 14,904 | |
Total cash obligations, due in 2025 | 47,198 | |
Total cash obligations, due Thereafter | 579 | |
Aircraft Notes Principal [Member] | ||
Contractual Obligation Fiscal Year Maturity [Line Items] | ||
Long-term debt, Total | 59,500 | |
Long-term debt, due in 2021 | 0 | |
Long-term debt, due in 2022 | 3,500 | |
Long-term debt, due in 2023 | 7,000 | |
Long-term debt, due in 2024 | 7,000 | |
Long-term debt, due in 2025 | 42,000 | |
Aircraft Notes Interest [Member] | ||
Contractual Obligation Fiscal Year Maturity [Line Items] | ||
Long-term debt, Total | 9,240 | |
Long-term debt, due in 2021 | 1,190 | |
Long-term debt, due in 2022 | 2,380 | |
Long-term debt, due in 2023 | 2,170 | |
Long-term debt, due in 2024 | 1,890 | |
Long-term debt, due in 2025 | 1,610 | |
Other Loans Principal [Member] | ||
Contractual Obligation Fiscal Year Maturity [Line Items] | ||
Long-term debt, Total | 19,997 | |
Long-term debt, due in 2021 | 894 | |
Long-term debt, due in 2022 | 12,697 | |
Long-term debt, due in 2023 | 2,727 | |
Long-term debt, due in 2024 | 2,754 | |
Long-term debt, due in 2025 | 925 | |
Other Loans Interest [Member] | ||
Contractual Obligation Fiscal Year Maturity [Line Items] | ||
Long-term debt, Total | 823 | |
Long-term debt, due in 2021 | 282 | |
Long-term debt, due in 2022 | 328 | |
Long-term debt, due in 2023 | 51 | |
Long-term debt, due in 2024 | 24 | |
Long-term debt, due in 2025 | $ 138 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Detail) $ / shares in Units, shares in Thousands | Jan. 07, 2021Aircraft | Jan. 17, 2020USD ($) | Jan. 31, 2020USD ($)$ / sharesshares | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($) |
Related Party Transaction [Line Items] | ||||||
Operating lease agreements term | April 2010 through January 2020 | |||||
Payment For Management services fee | $ 12,500 | |||||
Series C Redeemable Convertible Preferred Stock [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Common stock issuable upon conversion of temporary equity | shares | 16,500 | |||||
Southshore [Member] | CRJ-200 [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Number Of Aircraft Acquired | Aircraft | 3 | |||||
Business acquistion liabilites assumed | $ 3,466,000 | |||||
Southshore [Member] | CRJ-200 [Member] | Series C Redeemable Convertible Preferred Stock [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Business acquisition shares issued or issuable | shares | 4,000 | |||||
Business acquisition shares issued or issuable value | $ 13,200,000 | |||||
Business acquisiton shares | $ / shares | $ 3.30 | |||||
Air Wisconsin [Member] | Southshore [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Payments to related parties pursuant to certain aircraft and engines leases and for other professional services | $ 150,000 | |||||
AWAC Aviation Inc [Member] | Financial Advisory And Management Services [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Monthly recurring fee payable pursuant to service agreement | $ 150,000 | |||||
Payment For Management services fee | $ 60,000 | $ 60,000 |
Earnings Per Share and Equity -
Earnings Per Share and Equity - Calculations of Net Income Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share Reconciliation [Abstract] | ||||
Net income (loss) | $ 20,521 | $ (8,337) | $ 45,746 | $ (3,923) |
Preferred stock dividends | 198 | 198 | 396 | 363 |
Net income (loss) applicable to common stockholders | $ 20,323 | $ (8,535) | $ 45,350 | $ (4,286) |
Weighted average common shares outstanding | ||||
Shares used in calculating basic earnings per share | 54,466 | 54,863 | 54,664 | 54,863 |
Stock option | 489 | 0 | 449 | 0 |
Series C Preferred | 16,500 | 0 | 16,500 | 0 |
Shares used in calculating diluted earnings per share | 71,455 | 54,863 | 71,613 | 54,863 |
Earnings (loss) allocated to common stockholders per common share | ||||
Basic | $ 0.37 | $ (0.16) | $ 0.83 | $ (0.08) |
Diluted | $ 0.28 | $ (0.16) | $ 0.63 | $ (0.08) |
Earnings Per Share and Equity_2
Earnings Per Share and Equity - Additional Information (Detail) $ / shares in Units, $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022$ / sharesshares | Jun. 30, 2021USD ($)shares | Jan. 07, 2021$ / shares | Jan. 31, 2020shares | Jun. 30, 2021shares | Mar. 31, 2021USD ($) | Jun. 30, 2020shares | Jun. 30, 2021shares | Jun. 30, 2020shares | Dec. 31, 2020shares |
Class of Stock [Line Items] | |||||||||||
Preferred stock, liquidation preference | $ / shares | $ 0.80 | ||||||||||
Common stock, convertible, conversion price | $ / shares | $ 0.15091 | ||||||||||
Conversion of stock option granted | 489,000 | 0 | 449,000 | 0 | |||||||
Percentage of the diluted capital stock | 23.40% | ||||||||||
Reporting Adjustment Period [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Outstanding shares are traded on reporting period, percentage | 5.00% | ||||||||||
Commencing trading date of company outstanding shares | August 28, 2020 | ||||||||||
Series C Redeemable Convertible Preferred Stock [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Temporary equity stock issued during the period shares new issues | 4,000,000 | 4,000,000 | |||||||||
Dividend rate | 6.00% | ||||||||||
Dividend declared | $ | $ 198 | $ 198 | |||||||||
Date of dividend declaration | Jun. 30, 2021 | Mar. 30, 2021 | |||||||||
Date of dividend payment | Mar. 31, 2021 | Jun. 30, 2021 | |||||||||
Temporary equity shares outstanding | 4,000,000 | 4,000,000 | 4,000,000 | 4,000,000 | |||||||
Series C Redeemable Convertible Preferred Stock [Member] | Conversion of Series C Redeemable Convertible Preferred Stock [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Temporary equity shares outstanding | 755 | 755 | 755 | ||||||||
Series C Redeemable Convertible Preferred Stock [Member] | Common Stock [Member] | Conversion of Series C Redeemable Convertible Preferred Stock [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Common stock converted | 16,500 | ||||||||||
Series C Preferred Stock [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Temporary equity stock issued during the period shares new issues | 3,245 | ||||||||||
Preferred stock, convertible, threshold trading days | 90 | ||||||||||
Preferred stock, convertible, threshold calendar day | 45 | ||||||||||
Minimum percentage of shares issued to outstanding stock | 5.00% | ||||||||||
Preferred stock, redemption date | Dec. 31, 2024 | ||||||||||
Temporary equity shares outstanding | 16,500,000 | 16,500,000 | 16,500,000 | ||||||||
Conversion of stock option granted | 489,000 | 449,000 | |||||||||
Series C Preferred Stock [Member] | Minimum [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred stock, shares outstanding | 800 | ||||||||||
Series C Preferred Stock [Member] | Forecast [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Percentage of increase in preferential dividends | 1.00% | ||||||||||
Conversion of preferred stock, maximum shares converted | 16,500 | ||||||||||
Cumulative quarterly preferred stock dividend rate percentage | 0.50% |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Business Acquisition [Line Items] | ||
Cash payments for interest | $ 2,022 | $ 0 |
Cash payments for income taxes | 17,784 | 0 |
Cash payments included in the measurement of lease liabilities related to operating leases | $ 1,761 | $ 2,995 |
Intangible Assets - Components
Intangible Assets - Components of Intangible Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Trade names and air carrier certificate | $ 5,300 | $ 5,300 |
Total | $ 5,300 | $ 5,300 |
Stock Repurchase Program - Addi
Stock Repurchase Program - Additional Information (Details) - Common Stock [Member] - Stock Repurchase Program [Member] - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 30, 2021 |
Equity, Class of Treasury Stock [Line Items] | ||
Stock Repurchase program amount | $ 1,000 | |
Number of shares repurchased | 593,472 | |
Maximum [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Stock Repurchase program amount per month effective April 2021 | $ 1,000 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Air Wisconsin [Member] - Psp3 Agreement [Member] - USD ($) $ in Thousands | Jul. 06, 2021 | Jun. 30, 2021 |
Subsequent Event [Line Items] | ||
Payroll support program grant expected | $ 33,329 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Payroll support program grant expected | $ 16,665 |