Surf Air Mobility Reports $74.9M Net Loss for 2024, Revenue Up 97% to $119.4M

Surf Air Mobility Inc. reported a net loss of $74.9 million for the year ended December 31, 2024, a significant improvement from the $250.7 million net loss in 2023. Revenue increased substantially by 97% to $119.4 million, driven by a 130% surge in scheduled service revenue to $90.7 million and a 36% increase in on-demand revenue to $28.7 million. The increase in scheduled revenue is largely attributed to the July 2023 acquisition of Southern Airways Corporation, which contributed $52 million. Operating expenses decreased by 30% to $179.7 million, primarily due to lower general and administrative expenses and the absence of a goodwill impairment charge.

Significant changes compared to the previous fiscal year include the acquisition of Southern Airways, resulting in a combined regional airline network across several U.S. regions. The company also underwent an internal reorganization in July 2023 and a seven-for-one reverse stock split in August 2024. These corporate actions, along with the acquisition, significantly impacted the reported financial figures. The company also experienced a decrease in general and administrative expenses, primarily due to a decrease in stock-based compensation expense and transaction costs associated with the company's public listing.

Strategic developments included the acquisition of Southern Airways, expanding the company's service network and adding Essential Air Service (EAS) routes. The company is also developing an AI-enhanced software operating system, SurfOS, and pursuing supplemental type certificates (STCs) for proprietary powertrain technology for Cessna Grand Caravan aircraft to facilitate aircraft electrification. The company anticipates launching SurfOS to initial customers in 2025 and expects its first fully-electric powertrain to enter service in early 2027.

Operationally, Surf Air Mobility served over 370,000 passengers with approximately 72,000 scheduled departures in 2024. The company employed 703 people as of December 31, 2024. The company's on-demand flight operations saw an increase in charter flights, driven by increased marketing efforts. The company also highlighted its strategic partnerships with Textron Aviation and Palantir Technologies. The company's financial statements included a significant impairment charge related to goodwill in 2023, which was not present in 2024.

The company acknowledges substantial doubt about its ability to continue as a going concern due to incurred losses, negative cash flow, and working capital deficit. It highlights the need for additional financing to execute its business plan and emphasizes the risks associated with its dependence on third-party partners, the development of electrification technology, and the competitive nature of the regional air mobility industry. The company is exploring various strategies to secure additional funding, including equity financing, debt issuance, and operational restructuring. The company's outlook remains uncertain, contingent upon successful execution of its strategic initiatives and securing necessary financing.