Surf Air Mobility Reports 15% Revenue Decline and $28M Net Loss in Q2 2025

Surf Air Mobility Inc. reported a decline in financial performance for the second quarter of 2025, with revenues totaling $27.4 million, a decrease of 15% from $32.4 million in the same period last year. For the first half of 2025, the company generated $50.9 million in revenue, down 19% from $63.0 million in the first half of 2024. The decrease in revenue was attributed to a reduction in both scheduled and on-demand flight services, primarily due to the exit from unprofitable routes and the absence of membership subscription revenue following the termination of certain scheduled membership routes.

The company's operating expenses also saw a significant reduction, totaling $43.4 million for the second quarter, down 25% from $57.6 million in the prior year. This reduction was driven by lower costs in several areas, including a 52% decrease in technology and development expenses and a 36% decrease in general and administrative costs. Despite these reductions, Surf Air Mobility reported a net loss of $28.0 million for the quarter, slightly higher than the $27.0 million loss recorded in the same period last year. The increase in net loss was primarily due to a rise in other expenses, including a $7.6 million increase in losses from changes in the fair value of financial instruments.

In terms of operational metrics, the company reported a decrease in scheduled flight hours and on-demand flights, reflecting its strategic shift to focus on profitability rather than market penetration. The total headcount at the end of the quarter was reduced, contributing to lower sales and marketing expenses. The company continues to face challenges related to aircraft utilization and staffing shortages, which have impacted its ability to serve customers effectively.

Looking ahead, Surf Air Mobility is focused on implementing operational improvements and managing expenses to enhance profitability. The company is also advancing its technology initiatives, including electrification programs for its aircraft. However, it faces significant liquidity challenges, with ongoing defaults on tax obligations and a working capital deficit. The company has raised $31.4 million through the issuance of common stock in the first half of 2025 and is exploring additional funding options to support its operations and strategic initiatives. The outlook remains uncertain, as the company must navigate market conditions and regulatory requirements while striving to achieve its growth objectives.