Surf Air Mobility Inc. (SRFM)

A. Company Overview

Surf Air Mobility Inc. is a Delaware corporation positioned as a leading regional air mobility platform, committed to revolutionizing the landscape of regional air travel. Established in 2021, the company has rapidly evolved to include a significant operational footprint among U.S. commuter airlines, recognized for both its scheduled passenger flights and a growing on-demand charter marketplace. By integrating advanced technology and operational efficiencies, Surf Air Mobility aims to modernize air travel while advancing the adoption of next-generation, electrified aircraft.

B. Operational Structure

Surf Air Mobility's operations encompass two primary business segments: the Air Mobility business and the Air Technology business. The Air Mobility sector offers both scheduled services and charter flight availability, catering to passenger needs in the United States and internationally. Meanwhile, the Air Technology division is focused on developing proprietary aviation software, aircraft electrification technologies, and supporting services, allowing for a thorough integration of cutting-edge solutions within the regional air mobility sector.

The company's operational base is characterized by a mix of acquired and organically developed assets. In July 2023, Surf Air Mobility became the parent entity for both Surf Air Global Limited and Southern Airways Corporation, significantly enhancing its operational breadth by merging their respective regional networks. This merger has positioned Surf Air Mobility as one of the largest commuter airlines in the U.S., with an impressive capacity of approximately 62,000 scheduled departures and service to over 300,000 passengers in 2025.

C. Fleet and Aircraft Utilization

As of the end of 2025, Surf Air Mobility operates a diverse fleet, primarily composed of Cessna Grand Caravan EX aircraft, highlighting the company's emphasis on reliability and efficiency in its flight operations. This fleet enables service to numerous communities throughout the U.S., including Hawaii, and facilitates the achievement of a robust, scheduled air service framework. The combination of operational scale achieved through a fleet of 41 aircraft underscores the company’s strategic focus on expanding its reach within underserved regional markets.

Fundamental to its operations is Surf Air Mobility's strategic partnerships with various air operators. This network includes over 400 regional air carriers that facilitate on-demand charter services, thereby enriching the passenger experience by adding versatility to the flight offerings. Looking forward, these partnerships are anticipated to be instrumental in the deployment of new software and aircraft technologies.

D. Strategic Objectives

Surf Air Mobility's strategic vision is heavily informed by the emerging trends in the aviation industry aimed at enhancing air travel efficiency and sustainability. The company has set its sights on commercializing electric aviation on a large scale, guided by the belief that regional air mobility can effectively compete with traditional ground transportation options for distances of 100 to 500 miles. By optimizing utilization of the approximately 5,000 public use airports in the U.S., the company envisions a densely connected point-to-point air network, supported by electrified aircraft designed to reduce operating costs and carbon emissions.

The company's strategy comprises several differentiators that contribute to its competitive positioning:

• Scale: Surf Air Mobility is among the largest commuter airlines regarding scheduled flights, providing a broad service range across the U.S.
• Experience: The company leverages over a decade of operational experience in the aviation sector, reflecting a substantial knowledge base and operational familiarity.
• Depth of Industry Ties: Exclusive partnerships with aircraft manufacturers, such as Textron Aviation, and collaborations with technology leaders like Palantir Technologies provide strong operational synergies.
• Technological Innovation: Development of SurfOS, an AI-enhanced operational software, is aimed at both optimizing internal operations and enhancing service delivery capabilities within the broader air mobility market.
• Execution Excellence: A leadership team comprised of experts across aviation, technology, and electrification facilitates effective strategy execution and drives growth.

E. Air Mobility Revenue Streams

Surf Air Mobility’s revenue generation is primarily categorized into two streams: Scheduled Air Service and On-Demand Operations.

• Scheduled Air Service: This segment generates revenue through the sale of public seat tickets and membership subscriptions. Thousands of daily departures exemplify the scale at which the company operates, creating stability and predictability in its revenue model. Importantly, the company also benefits from Essential Air Service (EAS) contracts, which ensure continued profitability and service support for designated underserved areas.
• On-Demand Operations: This segment comprises ad-hoc flights tailored to customer requests. While a minimal portion of these operations utilizes the company’s own fleet, most are fulfilled using third-party aircraft, thereby maintaining capital-light operational flexibility. The company's investment in a consumer platform streamlines the flight booking process and enhances service accessibility.

F. Customer Experience

Surf Air Mobility has made intentional strides toward enhancing the overall customer experience throughout the air travel journey. This focus is driven by dedications to creating seamless booking procedures and ensuring passengers enjoy a hassle-free travel experience. Key elements include:

• Seamless Booking Process: The user-friendly mobile app and website enable consumers to easily purchase tickets or create private charters, creating a personalized travel experience.
• Convenient Airport Options: Operating from smaller regional airports and private terminals, Surf Air Mobility significantly reduces the time customers spend traveling to and from airports.
• Shortened Travel Times: By minimizing the required advance arrival time for flights, the company offers substantial time savings compared to traditional commercial airlines.
• Enhanced Support Services: A robust customer service infrastructure assists travelers with any travel-related inquiries, further ensuring a superior flying experience.

G. Innovation and Electrification Focus

Surf Air Mobility is resolving to lead the charge in reducing the aviation industry's environmental footprint through treasuring electrification technology. Pursuit of Supplemental Type Certificates (STCs) for proprietary powertrain innovations reflects a strategic commitment to ushering a sustainable aerial future. Exclusive marketing relationships with manufacturers like Textron Aviation provide significant leverage for deploying new hybrid and electrified aircraft, projecting long-term impact on air travel dynamics.

H. Regulatory Environment

Operating in a highly regulated industry, Surf Air Mobility must comply with a host of complex government regulations at federal, state, and local levels. Regulatory bodies such as the U.S. Department of Transportation (DOT), Federal Aviation Administration (FAA), and Transportation Security Administration (TSA) govern various aspects of its operations, including safety, passenger data privacy, and economic practices.

Navigating this regulation landscape is crucial for the company's sustained growth, especially as it seeks to innovate within the air mobility space. Ongoing compliance efforts are vital to mitigate risks, manage operational burdens, and ensure conformance with evolving legal frameworks.