Story ID: 
Surf Air Second-quarter Revenue and Losses Climb
By: Matt Thurber
Caption: Adjusted EBITDA drop exceeded company’s expectations
Word Count: 742
Regional air mobility operator, charter broker, and software developer Surf Air Mobility reported revenue of $27.4 million in the second quarter, up from $23.5 million in the first three months. Net loss in the quarter was $28 million, 51% higher than in the first quarter and “driven by a $2.6 million reduction in operating loss offset by a $12.2 million increase in other expenses, mainly due to non-cash changes in the fair value of financial instruments,” according to Surf Air.
Surf Air is “one of the largest commuter airlines in the U.S. by scheduled departures” and operates the largest fleet of Cessna Caravan turboprop singles. The company’s flight operations are conducted by Southern Airways Express, which Surf Air purchased in July 2023, and Hawaii-based Mokulele Airlines, which Southern acquired in 2019.
Another significant element of Surf Air’s business is its SurfOS software suite, which includes modules for charter brokers (BrokerOS), aircraft operators (OperatorOS), and aircraft owners (OwnerOS).
Second-quarter revenue of $27.4 million exceeded Surf Air’s expectation of $23.5 to $26.5 million and was 17% higher than the first quarter. Scheduled service revenue climbed 20% and on-demand charter brokerage revenue 5%.
“On a year-over-year basis, revenue decreased 15%, as expected, due to the company exiting unprofitable scheduled routes and focusing on profitability in its on-demand business. Scheduled service revenue decreased 12% and on-demand revenue decreased 26%, respectively,” the company noted.
In terms of adjusted EBITDA, the second-quarter loss was $9.5 million, better than the company’s expectation of a loss of $10 to $13 million. This was an improvement over the first quarter, up $4.8 million due to airline operations’ profitability. Year-over-year adjusted EBITDA improved by $2.3 million, also thanks to profitability in airline operations.
As part of its transformation plan, Surf Air raised $44.7 million in equity capital during the second quarter “through a combination of registered direct offerings, private sales of shares, and draws under its share subscription facility.” It also improved key operating performance measures in the airline business, including achieving profitability in the second quarter, signing an interline agreement with Japan Airlines, renewing four-year Essential Air Service contracts for Kalaupapa and Waimea, Hawaii, worth $14 million, and renovating aircraft interiors and exteriors.
Two charter operators have signed up as beta users of SurfOS, and Surf Air has expanded its relationships to 425 charter operators for the on-demand brokerage business.
“As the financial and operational results of the second quarter demonstrate, we are making phenomenal progress,” said Deanna White, Surf Air CEO and COO, during the financial results call. “These achievements for the quarter and year to date are the outcome of a deliberate and focused plan to strategically rebuild Surf Air Mobility.”
The on-demand business had its highest sales month in July since the inception of that unit. “We are running this business utilizing our BrokerOS software platform,” she said. “Our hyper-focus on product profitability has led to the introduction of an industry standard jet card and a shift to a larger cabin sales strategy to improve the unit economics of our offering.”
SurfOS is powered by Palantir, which is also the largest investor in Surf Air, according to White. “Many aspects of the platform are driving the commercial and operational performance of our air operations and on-demand businesses. SurfOS has replaced spreadsheets and PDFs with a fully integrated aviation stack powered by live flight data and real-time decision-making.”
The $45 million capital infusion is helping Surf Air “accelerate the pace of positive change in our operations and in our organization,” White said. “Surf Air Mobility is more than just an airline. We are a technology-led organization that will transform regional air mobility.”
In 2026, the company plans to expand its scheduled service network and add more Cessna Grand Caravans, with deliveries of two planned in each of the first and second quarters. Six clients have signed letters of intent to purchase software in advance of the commercial rollout in 2026.
On the electric aircraft front, Surf Air previously placed an order for 90 Electra STOL electric aircraft. Surf Air’s efforts to certify an electric-powered Grand Caravan continue, according to co-founder Sudhin Shahani. “We are still on track for a 2027, late 2027 time frame for the electrification initiative,” he said. “We’re working with a number of potential strategic partners within the value chain, within electrification, and expect to announce, as we have some of those solidified, some further developments on accelerating our path to market.”