Risk Factors Update Summary

• Lessee defaults could materially affect business due to payment difficulties, geopolitical events, and aircraft accidents.
• Revenue from ad hoc or short-term contracts decreased from 27% to 25% of operating expenses.
• Increased tariffs may negatively impact aircraft demand, leading to oversupply, lower market values, and reduced lease rates.
• Labor costs decreased from 32% to 29% of total operating costs for the years ended December 31, 2023 and 2022.
• Changes in fuel costs may adversely affect lessees, impacting demand for aircraft and potentially reducing earnings.
• Future debt principal obligations increased from $355 million to $405 million.
• Appreciation of the U.S. dollar may lead to lost revenues and reduced net income for lessees.
• Future finance lease obligations increased from $321 million to $342 million.
• Failure to maintain effective internal controls could harm business operations and financial condition.
• Operating lease payments are expected to increase from $75 million to $364 million in 2024.
• Maintenance reserves payments increased from $13 million to $15 million for the year ended December 31, 2023.
• The fleet consisted of 13 aircraft financed under finance leases, 11 aircraft financed under finance leases, and 29 aircraft owned outright as of December 31, 2023.