Surf Air Mobility Reports Revenue Growth Above Guidance and Announces CEO Transition

Deanna White, formerly the CFO, will become Chief Operating Officer and interim CEO, with Stan Little assuming the role of “Founder.”

Revenue for the first quarter of 2024 was $30.6 million, up 9.5% year-over-year on a pro forma basis, beating guidance. Please visit the Surf Air Mobility investor relations website at for more information and to listen to the accompanying earnings call.

CEO Transition: Surf Air Mobility Inc. today announced that Southern Airways founder and current Surf Air CEO Stan Little will transition to a “Founder’s” role. Former CFO and current Senior Advisor Deanna White will become Chief Operating Officer and interim CEO. Deanna is a seasoned industry leader with a track record of success in the C-Suite of multiple innovative companies across the air mobility sector. Previously, Deanna was CEO of Bombardier Flexjet, a global leader in private aviation, which was ultimately sold to Directional Aviation Capital. Following that, she was COO of Kitty Hawk, an EVTOL startup, which was sold during her tenure to Boeing and has subsequently been rebranded as Wisk Aero. Stan Little will remain an active participant in the company’s long-term strategy. “It was one of the high points of my career to build Southern Airways from the ground up with such a dedicated team, and I look forward to continuing to help Surf Air Mobility transform itself into the premier “green” commuter airline in the world,” said Little on Tuesday as he joined Purdue University officials in launching the first commuter service in a generation from the University to Chicago O’Hare. “We are thrilled that Deanna has agreed to assume the role of Chief Operating Officer and interim CEO as the company turns its focus to profitability and efficiency across its flight operations,” said Carl Albert, Surf Air Mobility’s Chairman of the Board. “I would like to recognize Stan as the founder of Southern Airways for building that company from birth into the largest commuter airline by departure and largest operator of Cessna Caravans and we are pleased to continue to benefit from his experience as a Special Advisor to the company.”

First Quarter Financial Highlights: Surf Air Mobility is providing unaudited results for the period ended March 31, 2024, on a quarterly basis, as well as unaudited pro forma results for the period ended March 31, 2023, which assumes the Southern acquisition closed as of the beginning of fiscal year 2023. Revenue of $30.6 million for first quarter 2024 compared to $27.9 million for the same period of the prior year on a pro-forma basis, beating first quarter 2024 guidance. Net loss of $(37.0) million for first quarter 2024, compared to $(15.5) million for the same period of the prior year on a pro-forma basis, which includes investment in R&D for electrification and software technology, stock-based compensation, transaction costs and other non-recurring items. Adjusted EBITDA of $(16.5) million for the first quarter 2024, compared to $(11.7) million for the same period of the prior year on a pro-forma basis, meeting our first quarter 2024 guidance. Adjusted EBITDA includes investment in R&D for electrification and software technology. See the Adjusted EBITDA table for the reconciliation from Net Loss to Adjusted EBITDA. As of March 31, 2024, Surf Air Mobility had $1.3 million in cash on hand, with the ability to draw $90 million in committed draws and up to $296 million in follow-on draws subject to the terms of the GEM share subscription facility.

Developments on Key Initiatives: Mobility Congress is expected to imminently pass the FAA Reauthorization Act, which, in its current form, would positively impact the Essential Air Service (“EAS”) program by raising the subsidy cap from a maximum of $200 per passenger to a maximum of at least $650 per passenger. As of March 31, 2024, Surf Air Mobility supported 19 communities under the EAS program. The FAA Reauthorization Act requires the total cost of an air carriers proposal to be equally weighted with other factors such as local recommendations, including frequency of service, and interline agreements. This focus on cost favors Surf Air Mobility’s low-cost Caravan fleet. Textron Aviation aircraft deliveries are on track for the third and fourth quarter of 2024. Surf Air Mobility entered into an MOU to supply electric powertrains to Tanzanian Cessna Caravan operator Auric Air, bringing total penetration into Africa’s Caravan footprint to ~13%. Electrification Aircraft electrification program is on track to complete the conceptual design phase by the fourth quarter of 2024. Software Continuing development of B2C and B2B software platform to enable the regional aviation ecosystem, from passengers to air operators, with a suite of software tools powered by AIP, Palantir’s AI engine. “Once again, Surf Air Mobility achieved many of our goals in the first quarter, while also meeting or beating guidance. We worked with Congressional leaders on both sides of the aisle to help reform and expand the Essential Air Service program in a way that benefits passengers, commuter air carriers, and taxpayers, while continuing our drive toward electrification, which benefits everyone,” said Stan Little, founder of Southern Airways.

Strategic Update: To underpin the company’s ongoing efforts to balance growth with profitability, Surf Air Mobility is undertaking a strategic review that will ultimately result in cost reduction and other expense control measures aimed at returning airline operations to profitability. Surf Air Mobility is also actively pursuing other strategic initiatives with partners and affiliates, including the creation of one or more joint ventures, to separately capitalize the company’s electrification and software efforts and maximize shareholder value creation from these substantial investments. The company intends to provide a more comprehensive strategic update on these, and other, initiatives at its investor day that will now, in light of the CEO transition, be held in the third quarter of 2024. Capital Structure Update: Surf Air Mobility has retained a leading investment bank to more fully represent the company in its efforts to secure additional, non-dilutive or less-dilutive capital in the form of a credit facility. “Management is continuously searching for ways to optimize our capital structure and reduce dilution to our shareholders,” said Oliver Reeves, CFO of Surf Air Mobility. “Our agreement with our banking partner formalizes these efforts and we look forward to updating the market of any success in due course.” Second Quarter 2024 Financial Outlook: Revenue, in the range of $28.0 million to $31.0 million. Pro forma adjusted EBITDA, in the range of $(18.0) million to $(16.0) million, which excludes the expected impact of stock-based compensation, changes in fair value of financial instruments, and other non-recurring items. Surf Air Mobil