Cost PressuresGross margin decreased due to increased depreciation, maintenance, insurance, and travel expenses associated with higher aircraft utilization and inflationary pressures.
Financial UncertaintyThe financing of Spanish scoopers is still to be determined, which could impact financial outcomes if not resolved favorably.
Operational ChallengesCalifornia revenue associated with by-the-hour wildfire suppression operations is likely lower than anticipated due to the aircraft remaining in standby mode.