Estimated useful lives and residual values for each asset class are as follows:
Asset Class
Current Useful
Life Effective
January 1, 2024
(Years)
Previous Useful Life Effective December 31, 2023 and Prior (Years)Residual Value
Building
39.039.0
Regional jet aircraft
26.022.0
0.0% – 10.0%
General aviation aircraft, engines, and flight equipment
10.0 – 26.0
10.0 – 22.0
0.0% – 50.0%
Office equipment and leasehold improvements
3.0 – 20.0
3.0 – 20.0
Property and equipment consisted of the following as of December 31, 2025 and 2024:
(in millions)20252024
Aircraft
$3,206.6 
$2,898.7 
Engines and flight equipment
300.4 
243.4 
Land and buildings
211.3 
158.9 
Office equipment and leasehold improvements
75.0 
67.2 
Total property and equipment
3,793.3 
3,368.2 
Less accumulated depreciation and amortization
(1,383.3)
(1,258.7)
Property and equipment, net
$2,410.0 
$2,109.5 

Historical Timeline

Fiscal YearFiled
2025Mar 19, 2026Showing above
2024May 14, 2025
2023Jan 26, 2024
2022Dec 29, 2022
2021Dec 10, 2021
2020Dec 14, 2020
2019Dec 17, 2019
2018Dec 20, 2018

About PP&E Disclosures

The PP&E disclosure details a company's physical asset base — land, buildings, machinery, and equipment — along with the depreciation methods and useful life assumptions that determine how these costs flow through the income statement. Capitalization policy thresholds reveal management's judgment on the boundary between expense and asset, directly affecting both reported earnings and asset values.

Key signals: changes in estimated useful lives or depreciation methods can materially shift reported earnings without any operational change. Compare capital expenditures against depreciation expense — when capex consistently trails depreciation, the asset base may be aging and underinvested. Watch for large asset impairments or write-downs that signal overvalued carrying amounts. Asset retirement obligations reveal future environmental or decommissioning costs that are often underappreciated. Compare PP&E intensity (PP&E-to-revenue) against industry peers to assess capital efficiency and competitive positioning.