Surf Air Mobility Reports Key Achievements in Optimization Phase of Transformation Plan
LOS ANGELES--(BUSINESS WIRE)--Surf Air Mobility Inc. (NYSE: SRFM) ('the Company', 'Surf Air Mobility'), a leading regional air mobility platform, today announced key progress within the second phase of the Company's four-phase Transformation Plan. The Optimization phase is focused on operational improvements and internal SurfOS™ technology deployment to achieve profitability in the Company's airline operations this year, defined as positive Adjusted EBITDA.
Recent Optimization phase key achievements include:
Optimize airline operations (Southern Airways and Mokulele Airlines)
Steadily improved controllable completion factor 1 over the past several months with an increase of 10% compared to FY24.
Steadily improved D0 (on time departures) over the past several months with an increase of 21% compared to FY24.
Steadily improved A14 (arrivals within 14 minutes of planned schedule) over the past several months with an increase of 21% compared to FY24.
Recently won a bid contract renewal in one Essential Air Service community, resulting in ~$9.9 million of additional subsidy revenue over the next 4 years.
Controllable completion factor, D0, and A14, are currently the highest on record since January 2023, and the Company believes the continued improvements to operational reliability will further strengthen customer satisfaction and position the airline for long-term, profitable growth.
Recalibrate the On Demand business
The Surf On Demand business has now worked with over 425 operators since inception.
Drive efficiencies from SurfOS
Pilot reporting for non-regulatory filings of Flight Risk Assessment Tool (FRAT) reports have doubled since the launch of the Company's Crew App, strengthening its safety culture, enhancing its operational visibility, and enabling proactive risk mitigation.
The Company attributes much of the operational improvement to steps taken by its strengthened senior leadership team with talent from Southwest, Flexjet, and Amazon Air, as well as the significant investments made in refurbishing aircraft, introducing new Cessna Caravans into service, and the broadening internal adoption of SurfOS.
Deanna White, CEO and COO of Surf Air Mobility, said: 'The primary objective of the Optimization phase of our Transformation Plan is to build a more efficient and profitable organization to set the foundation from which to expand our network and accelerate our growth. These recent results illustrate the impact of the significant investments we've made across the organization and within our fleet. These improved metrics reflect a tangible return on investment and highlight the results and execution momentum of our Transformation Plan.'
Surf Air Mobility remains on track to enter the third phase of the Company's Transformation Plan, 'Expansion,' in 2026, within which the Company plans to launch new scheduled routes and offer SurfOS to third-party customers.
About Surf Air Mobility
Surf Air Mobility is a Los Angeles-based regional air mobility platform and one of the largest commuter airlines in the U.S. by scheduled departures. It is also the largest U.S. passenger operator of Cessna Caravans. In addition to its airline operations and On Demand charter services, Surf Air Mobility is developing an AI-powered software platform for the Regional Air Mobility industry. The company is also working to commercialize electrified aircraft and develop proprietary powertrain technology for the Cessna Caravan. Surf Air Mobility plans to offer its software and electrification solutions to the Regional Air Mobility industry to improve safety, efficiency, and profitability.
Forward-Looking Statements
This Press Release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding Surf Air's profitability and future financial results and its ability to achieve its business objectives. Readers of this release should be aware of the speculative nature of forward-looking statements. These statements are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company and reflect the Company's current views concerning future events. As such, they are subject to risks and uncertainties that could cause actual results or events to differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, among many others: Surf Air's ability to anticipate the future needs of the air mobility market; Surf Air's future ability to pay contractual obligations and liquidity will depend on operating performance, cash flow and ability to secure adequate financing; the dependence on third-party partners and suppliers for the components and collaboration in Surf Air's development of its advanced air mobility software platform, and any interruptions, disagreements or delays with those partners and suppliers; the inability to execute business objectives and growth strategies successfully or sustain Surf Air's growth; the inability of Surf Air's customers to pay for Surf Air's services; the inability of Surf Air to obtain additional financing or access the capital markets to fund its ongoing operations on acceptable terms and conditions; the outcome of any legal proceedings that might be instituted against Surf Air, the risks associated with Surf Air's obligations to comply with applicable laws, government regulations and rules and standards of the New York Stock Exchange; and general economic conditions. These and other risks are discussed in detail in the periodic reports that the Company files with the SEC, and investors are urged to review those periodic reports and the Company's other filings with the SEC, which are accessible on the SEC's website at www.sec.gov, before making an investment decision. The Company assumes no obligation to update its forward-looking statements except as required by law.
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