On-demand charter revenue, including from jet card flights, dropped as Surf Air said it continues its focus on becoming profitable.
For the second quarter of 2025, Surf Air Mobility Inc. reported $27.4 million in revenues.
The top line exceeded its guidance of $23.5 – $26.6 million.
Net loss was $28.0 million, compared to $1.0 million more than in Q2 a year ago.
(The full Q2 SEC financial filing for Surf Air can be downloaded at the end of this article.)
Per the company, a $9.3 million reduction in operating loss was offset by an increase of $7.6 million in non-cash changes in the fair value of financial instruments and an increase of $1.9 million in interest expense reflecting a higher debt balance.
On a sequential basis, net loss increased 52%, despite a $2.6 million reduction in operating loss.
That gain was offset by a $12.2 million increase in other expenses, “mainly due to non-cash changes in the fair value of financial instruments.”
CEO and COO Deanna White said, “The operational and financial results of the second quarter reflect an inflection point in the trajectory of the company.
She added, “With a strengthened balance sheet, significantly improved airline operations, and strong momentum in our software business powered by Palantir, we have confidence in our ability to achieve our goals in 2025, in advance of entering our planned Expansion phase in 2026.”
Scheduled Service grew by over 20%.
Controllable completion factor increased 82% to 95%.
On-demand revenues fell from $8.1 million to $6.0 million year-over-year in Q2.
Revenue from on-demand charter and jet card flights was from $15.8 million to $11.7 million compared to 2024 for the first six months.
During the first half, on-demand flights dropped to 1,329 from 1,902 in 2024 per Surf Air’s SEC filing.
The filing added, “The decrease in on-demand revenue was related to exiting several on-demand products to focus on profitability rather than near-term market penetration.”
Surf Air relaunched its jet card program in March 2025.
Surf Air said there was a seven-percentage point improvement in margins, “driven by an increase in the number of charter flights and the positive impact of BrokerOS software on the business.”
The company also raised $44.7 million in equity capital during the quarter.
It ended the quarter with $22.6 million in cash.
White said, “Revenue and Adjusted EBITDA outperformed our expectations, we achieved profitability for the quarter in our airline operations, and we have reaffirmed our 2025 guidance that revenues will exceed $100 million and that airline operations will achieve profitability for fiscal year 2025.”
Adjusted EBITDA loss was $9.5 million for the second quarter of 2025.
That beat the company’s guidance of a $10.0 – $13.0 million EBITDA loss.
Adjusted EBITDA improved by $4.8 million sequentially and $2.3 million year-over-year.
Looking ahead, Surf Air forecasts Q3 revenue between $27.0 million and $28.5 million.
Adjusted EBITDA loss is expected to be between $10.0 million $8.5 million.
That excludes the expected impact of stock-based compensation, changes in fair value of financial instruments, and other non-recurring items.
Surf Air stock ended the day at $4.19.
That gives it a market cap of $144.2 million.
SRFM has traded between $0.90 and $9.19 over the past year.
DOWNLOAD: Surf Air Financials Q2 2025
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