\nSurf Air Mobility Inc. (NYSE: SRFM) (the \u201cCompany\u201d), a leading regional air mobility platform, today reported financial results for the fourth quarter and full year ended December 31, 2024.\n<\/p>\n
\n\u201cDuring 2024, we designed and implemented a four phase Transformation Plan, a strategic plan to achieve profitable growth. We will measure our success based on our execution of our Transformation Plan. The first phase, Transformation, has been completed. The entire organization is now laser focused on the Optimization phase with the goal of reaching profitability in our airline operations in 2025,\u201d said Deanna White, Chief Executive Officer and Chief Operating Officer of Surf Air Mobility.\n<\/p>\n
\nShe continued, \u201cThe financial results for the fourth quarter and full year reflect strong and deliberate execution against our plan. During 2024, we successfully captured synergies from our merger with Southern Airways, drove efficiencies across our organization, began exiting unprofitable routes, and reduced our general and administrative costs. During the fourth quarter, we secured a $50 million Term Loan to address near term liquidity constraints, lower our cost of capital, minimize potential dilution and reposition the company for profitable growth.\u201d\n<\/p>\n
Fourth Quarter Financial Highlights:<\/b><\/p>\n
\nRevenue\n<\/p>\n
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- \nRevenue of $28.05 million for the fourth quarter of 2024 rose 5% compared to $26.8 million for the same period of the prior year, exceeding the Company\u2019s expectation of $25.0 million – $28.0 million.<\/p>\n
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- \nScheduled service revenue decreased by 4% primarily driven by the elimination of unprofitable routes\n<\/li>\n
- \nOn Demand service revenue increased by 39% over the comparable period, which was driven by a mix of higher sales and flight completions\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
\nNet Income\/Loss\n<\/p>\n
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- \nNet income improved by $112.3 million to $1.3 million for the fourth quarter of 2024 compared to a net loss of $111.0 million in the prior year period. Both net income for the fourth quarter of 2024 and net loss for the fourth quarter of 2023 included investment in R&D for electrification and software technology, stock-based compensation, transaction costs and other non-recurring items. The fourth quarter of 2023 included a goodwill impairment charge of $60 million. The fourth quarter of 2024 included a $38.9 million reversal of unearned compensation under the Company\u2019s incentive plans. Additionally, actions taken in 2024 to exit unprofitable routes and realize M&A synergies drove improvement in profitability.\n<\/li>\n
- \nAdjusted EBITDA loss improved by $11.5 million, or 63%, to $6.9 million for the fourth quarter of 2024 compared to a loss of $18.4 million for the same period of the prior year, within the guidance range of a loss of $5 million to $8 million. The results were driven by improvements from exiting unprofitable routes, realized M&A synergies, and lower compensation costs. Adjusted EBITDA includes investment in R&D for electrification and software technology.\n<\/li>\n
- \nSee the Adjusted EBITDA table for the reconciliation from Net Loss to Adjusted EBITDA.\n<\/li>\n<\/ul>\n
Full Year Financial Highlights1<\/sup>:<\/b><\/p>\n
\nRevenue\n<\/p>\n
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- \nRevenue of $119.4 million for the full year 2024 rose 6% compared to $112.9 million for the prior year on a pro-forma basis.<\/p>\n
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- \nScheduled service revenue was flat with the prior year. Eliminated unprofitable routes were offset by the additions of subsidized route revenue for Williamsport, Purdue and Lanai.\n<\/li>\n
- \nOn Demand service revenue increased by 28% over the comparable period, which was primarily the result of improved charter sales and increases in completed departures.\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
\nNet Loss\n<\/p>\n
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- \nGAAP Net Loss improved by $175.8 million, or 70%, to $74.9 million for the full year 2024 compared with $250.7 million in the prior year period. Both GAAP net loss for the full year 2024 and GAAP net loss for the full year 2023 included investment in R&D for electrification and software technology, stock-based compensation, transaction costs and other non-recurring items. A goodwill impairment charge of $60 million was recorded for the full year 2023. For the full year 2024, a reversal of $43 million in unearned compensation under the Company\u2019s incentive plans was recorded. Additionally, actions taken in 2024 to exit unprofitable routes and realize M&A synergies drove improvement in profitability.\n<\/li>\n
- \nNet loss improved by $110.1 million, or 60%, to $74.9 million for the full year 2024, compared to pro-forma Net Loss of $185.0 million in the prior year. Both net loss for the full year 2024 and net loss for the full year 2023 included investment in R&D for electrification and software technology, stock-based compensation, transaction costs and other non-recurring items. A goodwill impairment charge of $60 million was recorded in 2023. In 2024, a reversal of $43 million in unearned compensation under the Company\u2019s incentive plans was recorded. Additionally, actions taken in 2024 to exit unprofitable routes and realize M&A synergies drove improvement in profitability.\n<\/li>\n<\/ul>\n
- \nRevenue of $119.4 million for the full year 2024 rose 6% compared to $112.9 million for the prior year on a pro-forma basis.<\/p>\n
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