© Reuters.
Surf Air Mobility Inc., a company focused on regional flight electrification, has maintained its full-year guidance for 2023 while revealing its third-quarter results. The firm, which recently went public on the New York Stock Exchange (NYSE), has completed its merger with Southern Airways and reinforced strategic partnerships with major industry players such as Textron (NYSE:) Aviation, Jetstream Aviation Capital, and GEM Global Yield.
The third quarter saw Surf Air place an order for 100 Cessna Grand Caravan EX aircraft from Textron Aviation, with the first 11 expected to enter service by 2024. To mitigate supply chain challenges, the company acquired spare engines to expedite a return to normal operations within the next two quarters.
Surf Air’s On-Demand business experienced significant growth with a 63% increase in flights during the third quarter compared to the same period last year and a 55% rise year-to-date. Additionally, the company’s Electrification business made progress through a data license agreement with Textron Aviation and a design partnership with AeroTEC. A sales and marketing agreement was also finalized with Textron Aviation for Surf Air’s electrified powertrains.
In a move to innovate regional travel, Surf Air announced a collaboration with REGENT to introduce all-electric Seaglider airships. These airships are set to launch in Hawaii and establish passenger services in South Florida, the Bahamas, and the Caribbean. This initiative is part of Surf Air’s broader strategy to transform regional flying through electrification.
Financially, Surf Air reported GAAP revenue of $21.9 million and pro forma revenue of $28.9 million for Q3 2023. This represents a 6.2% increase on a pro forma basis year-over-year. Despite these gains, the company also reported a GAAP net loss of $(74.6) million for the quarter.
Looking ahead, Surf Air projects GAAP revenue between $54.5 million to $59.5 million and pro forma revenue between $107.5 million to $112.5 million for the full year of 2023. These projections indicate an anticipated growth of 6.9% – 11.8% compared to 2022.
The recent restructuring of Surf Air’s funding agreement with GEM Global Yield has provided the company with improved cash draw flexibility and access to capital up to $400 million, positioning it for continued investment in its strategic initiatives.
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