November 21, 2024
Adjusted EBITDA loss for Surf Air was $8.9 million, beating guidance of a loss between $10-to-$13 million.
Surf Air reported third-quarter results last week, showing revenue of $28.4, down year-over-year from $28.9 million on a pro format basis to reflect its merger with Southern Airways.
It had forecasted $25-to-$28 million.
Adjusted EBITDA loss was $8.9 million, beating guidance of a loss between $10-to-$13 million.
COO and Interim CEO Deanna White said, “The financial results for the third quarter demonstrate our continued progress on our transformation plan. We are rightsizing our air mobility operations, implementing new processes, driving improved efficiency, and repositioning our air mobility operations for sustained profitability.”
Surf Air also secured $50 million in financing last week.
“The new funding, coupled with significant progress in reducing liabilities during the fourth quarter, unlocks the company’s ability to complete the rationalization of routes, resolve deferred maintenance, and further improve flight completion rates,” according to the Q3 earnings release.
GAAP Net Loss improved to $12.2 million compared with $74.6 million in the prior year.
Net Loss of $12.2 million for the third quarter of 2024, compared to pro-forma Net Loss of $45.4 million for the same period of the prior year.
Total consolidated on-demand charter revenue decreased by 13% over the comparable period.
The decline “represents the impact of management’s focus on profitability rather than near-term market penetration.”
According to its Investor Day presentation, Surf Air recorded $26.6 million in on-demand charter revenue in 2023.
The flights represented 3,535 departures from over 300 operators.
Legacy Surf Air on-demand charter flew 1,916 on-demand charter flights during the nine months that ended September 30, 2024, compared to 1,617 on-demand charter flights for the same period in 2023.
The company also said it is addressing its long-standing issues with the IRS.
According to its SEC filing, “In June 2024, the company submitted a formal OIC to the IRS, seeking to resolve all consolidated excise tax liabilities. Under the terms of the OIC, all collection actions against the company, in relation to these matters, will be abated, and the company will make $34 thousand monthly payments on historical excise tax liabilities while the IRS considers the OIC.”
Surf Air continues to operate limited by-the-seat flights in California.
READ: SURF AIR Q3 2024 FINANCIAL RESULTS
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