Surf Air Mobility Exceeds Expectations with Strategic Growth and Innovation

Surf Air Mobility Inc. (NYSE: SRFM) has showcased a remarkable turnaround in its latest quarter, surpassing revenue and EBITDA expectations with $27.4M in revenue and an Adj. EBITDA of ($9.5)M. This performance is attributed to enhanced airline operations, the optimization of its On Demand segment, and the growing adoption of its SurfOS software platform. A significant milestone was the profitability of airline operations on an Adj. EBITDA basis, supported by a 95% completion factor and improved margins in On Demand services. Strategic financial maneuvers, including raising $44.7M in equity and converting $29.9M of convertible notes, have strengthened the company's balance sheet. A highlight is the expanded partnership with Palantir, securing a five-year exclusive agreement for software configuration and sales, underscoring SRFM's commitment to innovation and growth.

Operational improvements in air mobility, including a 20% year-over-year increase in on-time departures and arrivals, alongside the renewal of an Essential Air Service contract in Hawaii, reflect SRFM's focus on reliability and customer experience. The SurfOS platform, comprising BrokerOS, OperatorOS, and OwnerOS, is gaining traction, with six new LOI agreements signed in the quarter. SRFM's leadership in aviation electrification, with its electric powertrain program for the Cessna Caravan, positions it as a pioneer in sustainable aviation. With a positive outlook for FY25 and beyond, SRFM is poised for significant growth, targeting $100.0M in revenue and positive Adj. EBITDA by year-end.