Surf Air Mobility Announces Q1 2025 Financial Performance
Surf Air Mobility Inc. a leading regional air mobility platform working to transform air travel through innovation and technology, today announced its financial results for the first quarter ended March 31, 2025. The Company reported a combination of solid revenue performance, significant year-over-year reduction in net loss, and continued operational progress aligned with its Transformation Plan, reinforcing its trajectory toward profitability in 2025.
“During the first quarter of 2025, we continued to make strong progress across multiple initiatives in our Transformation Plan, achieving numerous milestones and keeping us on track to achieve profitability in our airline operations in 2025,” said Deanna White, Chief Executive Officer and Chief Operating Officer of Surf Air Mobility. “Our momentum is strong, and our operating metrics continue to improve as we optimize our aircraft fleet, implement new technologies, and drive efficiencies across the organization.”
First Quarter 2025 Financial Highlights (Unaudited)
Surf Air Mobility generated revenue of $23.5 million during the first quarter of 2025, landing at the higher end of its previously issued guidance of $21.0 million to $24.0 million. The revenue performance reflects the Company’s continued focus on its core services and commitment to improving operational efficiency and customer value.
Revenue Composition:
- Scheduled Service Revenue: Revenue from scheduled airline services declined by 23% compared to the same period in 2024. The decrease was primarily attributable to the Company’s deliberate exit from unprofitable routes and a short-term service disruption in January.
- On-Demand Service Revenue: Charter and on-demand services revenue also declined by 25% year-over-year, in line with the Company’s ongoing strategic shift to prioritize charter profitability over top-line growth.
Despite these short-term declines, the Company emphasized that the reallocation of resources and streamlining of operations are key steps in improving long-term margins and sustainable revenue generation.
Net Loss:
The Company reported a net loss of $18.5 million for the quarter, a marked improvement from the $37.0 million net loss in the first quarter of 2024. This significant year-over-year reduction in net loss was primarily driven by:
- Decreased technology-related expenditures
- Reduced compensation costs
- A favorable change in the fair value of financial instruments
Adjusted EBITDA:
Adjusted EBITDA loss for Q1 2025 improved to $14.4 million, compared to a loss of $16.5 million in the same period a year earlier. This result falls within the Company’s guidance range of a $12 million to $15 million loss. Adjusted EBITDA excludes non-recurring expenses such as stock-based compensation, changes in fair value of financial instruments, and other non-operational items.
The Company attributed the improvement in Adjusted EBITDA to disciplined financial management and efficient capital deployment, particularly the use of funds raised in November 2024 to address an aircraft maintenance backlog and support continued R&D initiatives.
Transformation Plan Progress: Phase 2 – Optimization (2025–2026)
In line with the Company’s multi-year Transformation Plan, Surf Air Mobility has entered the second phase – “Optimization” – which focuses on improving operational performance, enhancing product offerings, and deploying SurfOS, its proprietary software platform co-developed with Palantir Technologies.
Key Q1 2025 Operational Milestones:
Airline Operations Optimization
- Completed the relocation of the System Operations Center to the Dallas/Fort Worth area, positioning the team closer to operational activity and enabling faster decision-making.
- Returned five aging aircraft to lessors as part of a fleet optimization initiative.
- Strengthened management of Part 135 operations by recruiting experienced senior aviation professionals.
On-Demand Business Recalibration
- Introduced a streamlined Jet Card program, enhancing pricing transparency and expanding the charter product portfolio.
SurfOS Deployment
- Onboarded six beta users for SurfOS, the Company’s AI-driven regional aviation software platform.
- Designed and deployed white-label front-end websites and mobile apps for select beta customers, aimed at improving direct-to-consumer distribution.
- Rolled out self-service flight changes and cancellations through AI-enabled chat, resulting in a 20% reduction in call center volume.
- Released a mobile crew app to help pilots manage flight schedules, hours, and regulatory compliance.
- Developed and launched a weight and balance calculation tool, in line with FAA compliance requirements.
- Expanded SurfOS’s data capabilities to integrate third-party APIs for weather, census, and entertainment data, enhancing predictive analytics and operational decision-making.
Continued Execution in Q2 2025
As of the first six weeks of the second quarter, Surf Air Mobility has continued building on the momentum established in Q1. While Phase 1 of the Transformation Plan was officially completed in 2024, the Company continues to generate value from foundational initiatives.
Notable Q2 Developments:
Financing and Liquidity
- Raised $5 million in additional capital through a registered direct offering of common stock, bolstering the Company’s financial position and funding operational initiatives.
Operational Expansion
- Entered into a strategic interline agreement with Japan Airlines, allowing Surf Air flights to be booked through the global airline’s system. This expands Surf Air’s reach across a potential customer base of 435 million through all interline agreements.
- Implemented a comprehensive redesign of pilot compensation, domiciles, scheduling rules, and resource plans to support retention and scalability.
- Continued investment in fleet refurbishment, including updated interiors and exteriors for improved customer experience and brand consistency.
On-Demand Business Enhancements
- Executed volume purchase agreements with two operators using the SurfOS Operator platform, aimed at reducing per-unit charter costs and improving gross margins.
SurfOS Technology Progress
- Launched Flight Docs, a digital tool to streamline aircraft maintenance tracking and compliance documentation.
- Rolled out the Flight and Crew Scheduling module, automating mission-critical planning and improving operational agility.
Outlook: Full Year 2025 Guidance Reaffirmed
Surf Air Mobility reaffirmed its full-year 2025 guidance, highlighting confidence in both strategic direction and financial management. The Company emphasized that its ongoing efforts to optimize routes, streamline operations, and scale SurfOS position it well for sustainable performance in the years ahead.
Second Quarter 2025 Outlook:
- Revenue: Expected to be in the range of $23.5 million to $26.5 million. The forecast reflects a continued shift away from unprofitable scheduled routes and a heightened focus on profitable on-demand operations.
- Adjusted EBITDA: Anticipated loss between $10.0 million and $13.0 million, reflecting sustained investment in R&D and fleet readiness using funds raised in late 2024.
Full-Year 2025 Expectations:
- Revenue to exceed $100 million
- Achieve positive adjusted EBITDA from airline operations, marking a significant milestone in the Company’s path to profitability
Strategic Partnerships and Future Growth
Surf Air Mobility also reiterated its intent to form joint ventures or strategic partnerships that could unlock new revenue streams and capitalize on its technology assets. These include:
- Electrification Initiatives: The Company aims to accelerate development of electric aviation capabilities by establishing standalone entities focused on electrified aircraft technologies.
- Surf Air Technologies: SurfOS, developed in collaboration with Palantir, is at the core of this venture. The platform’s potential to become the leading operating system for regional air mobility remains central to Surf Air’s long-term vision.
About Surf Air Mobility
Surf Air Mobility is a pioneering regional air mobility platform transforming flying through electrification, software innovation, and an optimized hybrid operating model. Through scheduled and on-demand services, Surf Air connects underserved markets and leverages AI-powered platforms to enhance efficiency, sustainability, and customer experience. The Company is listed on the New York Stock Exchange under the ticker symbol SRFM.