Surf Air Mobility Inc. (NYSE: SRFM), a prominent regional air mobility platform, has released its financial results for the second quarter ending June 30, 2024.
“Our second-quarter results highlight the Surf Air Mobility team’s strong execution,” said Deanna White, Chief Operating Officer and Interim CEO. “We surpassed revenue expectations and saw a significant increase in Adjusted EBITDA. Our focus remains on expanding our presence and maintaining leadership in regional air mobility.”
White added, “Over the past 90 days, we’ve implemented operational improvements and tightly managed expenses, leading to positive adjusted EBITDA for our regional airline operations, formerly known as Southern Airways. We are also advancing our Technology operations, including the ‘SurfOS’ platform and the EP1 Caravan electrification initiative.”
Key Q2 Financial Highlights:
- Revenue: $32.4 million, up 13.2% from $28.6 million year-over-year on a pro forma basis, exceeding the $28.0 – $31.0 million range.
- Net Loss: Reduced to $(27.0) million from $(44.5) million the previous year, reflecting R&D investments, stock-based compensation, and transaction costs.
- Adjusted EBITDA: $(11.8) million, significantly better than the expected $(18.0) to $(16.0) million, including R&D investment.
Key Developments:
- Mobility: Revenue grew 13.2% year-over-year, driven by a 13.8% increase in Scheduled service revenue and an 11.8% rise in On Demand service revenue. Operational improvements and cost savings from the Southern Airways merger contributed to positive adjusted EBITDA.
- FAA Reauthorization Act: The new law increases subsidies for the Essential Air Service program, though its impact on Q2 revenue was not yet reflected.
- Software: Surf Air Technologies LLC will be formed in partnership with Palantir Technologies, aiming to develop AI-powered tools for advanced air mobility.
- Electrification: The aircraft electrification program is on track for conceptual design completion by Q4 2024 and STC by 2027.
