Surf Air Mobility Reports 23% Revenue Decline and Improved Operating Loss in Q1 2025

Surf Air Mobility Inc. reported a significant decline in financial performance for the first quarter of 2025, with total revenue of $23.5 million, down 23% from $30.6 million in the same period last year. The decrease was primarily attributed to a reduction in both scheduled and on-demand flight revenues, which fell by 23% and 25%, respectively. The company’s operating loss improved to $18.6 million, a 46% reduction from the previous year's loss of $34.5 million, reflecting a substantial decrease in operating expenses, which dropped by 35% to $42.1 million.

The company’s operational metrics showed a decrease in customer engagement, with a total of 370,000 passengers served in 2024, down from previous years. The headcount as of March 31, 2025, was not disclosed, but the company noted a reduction in employee-related expenses, particularly in sales and marketing, which decreased by 45% due to a reduced workforce. The company also reported a decrease in technology and development expenses, which fell by 62% as the initial licensing stage with Textron was completed.

In terms of strategic developments, Surf Air Mobility is focusing on enhancing its technology initiatives, including the development of a proprietary AI-enhanced aviation software platform and electrification of its aircraft. The company has entered into a joint venture with Palantir Technologies to support these efforts. Additionally, Surf Air is pursuing a significant order for 90 Cessna Grand Caravan aircraft, with an option for 26 more, as part of its expansion strategy. The company has made initial deposits of $2 million for these aircraft, with total expected costs of approximately $297 million.

Despite these initiatives, Surf Air Mobility faces challenges, including a working capital deficit and defaults on certain tax obligations totaling approximately $9.8 million. The company is currently exploring options to settle these liabilities while also attempting to comply with New York Stock Exchange listing requirements. The management has indicated that the ongoing operational improvements and stringent expense management are critical to achieving profitability in the future. The outlook remains cautious, with the company acknowledging the risks associated with market conditions and its ability to raise additional capital to fund operations and growth initiatives.