Surf Air Mobility, a leading regional air mobility platform, released its Q3 2024 financial results, reflecting strides in operational transformation and profitability.
Key Updates:
- Leadership Perspective: Interim CEO Deanna White emphasized progress in efficiency and rightsizing operations for sustainable growth.
- New Funding: Closed a $50 million term loan on November 14, enabling route optimization, deferred maintenance resolution, and enhanced flight completion rates.
Q3 2024 Financial Highlights:
- Revenue: $28.4M, slightly below the prior year’s $28.9M pro forma, but above the company’s forecast of $25M-$28M.
- Net Loss: Improved to $12.2M compared to $45.4M pro forma in Q3 2023, reflecting reduced liabilities and operating costs.
- Adjusted EBITDA: Loss of $8.9M, outperforming expectations of $10M-$13M, driven by improved On-Demand operations, synergies from acquisitions, and cost reductions.
Operational Developments:
- Mobility:
- Scheduled service revenue rose by 2%, boosted by subsidized routes but offset by unplanned maintenance.
- On-Demand service revenue declined 13% as management prioritized profitability over market expansion.
- Supported 20 communities under the EAS program and received two new Textron Aviation aircraft in November.
- Software:
- Continued SurfOS development to enhance efficiency and reduce costs.
- Announced a venture, Surf Air Technologies LLC, and a partnership with Palantir for advanced air mobility solutions.
- Electrification:
- On track to complete the Cessna Caravan STC by 2027 with Textron Aviation as a partner.
- Exploring joint ventures to capitalize and expand electrification efforts.
Outlook:
- Q4 2024 Revenue: Expected at $25M-$28M.
- Adjusted EBITDA Loss: Anticipated at $5M-$8M, excluding non-recurring items.
Surf Air Mobility remains committed to transforming air mobility through strategic growth, advanced technology, and sustainable practices.
