Combination Creates the Largest Commuter
Airline in the US1
Following the Close of the Transaction on July
27, 2023, Surf Air Mobility has 69.7 Million Basic Shares
Outstanding and 71.6 Million Fully Diluted Shares Outstanding
Surf Air Mobility to Release Financial Results
for the Second Quarter 2023 and Provide Full Year 2023 Outlook the
week of August 14, 2023
Surf Air Mobility Inc. (“Surf Air Mobility” or “SAM”), a
regional air mobility platform aiming to sustainably connect the
world’s communities, announced today that the transaction between
Surf Air Mobility and Southern Airways (“Southern”) closed
immediately prior to the listing of Surf Air Mobility on the New
York Stock Exchange under the ticker symbol “SRFM” on July 27,
2023. The combination of Surf Air Mobility and Southern will
provide the basis for SAM’s anticipated expanded, nationwide
regional air mobility platform. Following the close of the
transaction on July 27, 2023, Surf Air Mobility has 69,742,981
basic shares outstanding and 71,603,186 fully diluted shares
outstanding.
Operational and Financial Highlights, Surf Air and Southern
together:
- 450,000 passengers across 48 cities with over 75,000 departures
in 2022
- Revenue of $100.6 million for the full year 2022, up 44.6% YoY
on a combined basis2
- Operating loss of $(111.7) million for the full year 2022,
inclusive of $(33.4) million one-time transaction related expenses
and $(38.2) million in stock based compensation
- Cash on hand at July 27, 2023 of $34.7 million, with the
ability to draw $100 million in cash advances under the GEM share
subscription facility3
- Aircraft financing facility with Jetstream for up to $450
million to finance further expansion
- Fleet order with Textron Aviation Inc. to enable the growth of
SAM’s fleet by up to 150 Cessna Grand Caravans
- Exclusive provider to Textron Aviation Inc. of battery electric
and hybrid electric powertrain technology for the Cessna Grand
Caravan
Surf Air Mobility also announced that it will release its
financial results for the second quarter of 2023 and provide
outlook for the full year 2023 the week of August 14, 2023.
“Surf Air Mobility is building a regional air mobility platform
to sustainably connect the world’s communities. We are thrilled to
announce the completion of our transaction, combining Surf Air and
Southern into Surf Air Mobility, the largest commuter airline in
the US by scheduled departures. We are now well-positioned to build
a platform that delivers accessible, affordable, and sustainable
regional travel for our customers,” said Stan Little, CEO of Surf
Air Mobility. “Our public listing is just the beginning, and we
look forward to sharing our journey as we execute on our vision to
advance the future of flight.”
Surf Air Mobility intends to accelerate the adoption of green
flying by developing, together with its commercial partners,
hybrid-electric and fully-electric powertrain technology to upgrade
existing fleets. By creating a financing and services
infrastructure to enable this transition at an industry-wide level,
Surf Air Mobility believes it can bring electrified aircraft to
market at scale and substantially reduce the cost and environmental
impact of regional flying. Surf Air Mobility believes such cost and
environmental impact reductions are achievable by the end of the
decade, and that operating as a publicly-traded company and having
efficient access to growth capital will enable and accelerate the
implementation of its strategic plan.
Sudhin Shahani, co-founder of Surf Air Mobility, continued, “Our
end-state is electrification, but our flywheel begins with flying
more passengers via network expansion and providing solutions to
operators via Aircraft-as-a-Service (ACaaS), which we believe will
drive growth in the near- and mid-term. Surf Air Mobility is a
scaled – and growing – regional air travel company today, and we
believe our path to electrification via supplemental type
certification (‘STC’) will position us as a capital efficient,
technology-enabled, first mover in the regional air ecosystem.”
ABOUT SURF AIR MOBILITY
Surf Air Mobility is a Los Angeles-based regional air mobility
platform expanding the category of regional air travel to reinvent
flying through the power of electrification. In an effort to
substantially reduce the cost and environmental impact of flying
and as the operator of the largest commuter airline in the US, Surf
Air Mobility intends to develop powertrain technology with its
commercial partners to electrify existing fleets and bring
electrified aircraft to market at scale. The management team has
deep experience and expertise across aviation, electrification, and
consumer technology.
Forward Looking Statements
The information in this press release includes “forward-looking
statements” within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. Forward-looking statements include, among
other things, statements about: Surf Air Mobility’s ability to
anticipate the future needs of the air mobility market; future
trends in the aviation industry, generally; Surf Air Mobility’s
future growth strategy and growth rate and its ability to access
its financings, grow its fleet. In some cases, you can identify
forward-looking statements by terminology such as “may”, “should”,
“could”, “might”, “plan”, “possible”, “project”, “strive”,
“budget”, “forecast”, “expect”, “intend”, “will”, “estimate”,
“anticipate”, “believe”, “predict”, “potential” or “continue”, or
the negatives of these terms or variations of them or similar
terminology. These forward-looking statements include, without
limitation, statements regarding the satisfaction of required
conditions for the listing of the Surf Air Mobility common stock.
Factors that may cause actual results to differ materially from
current expectations include, but are not limited to: Surf Air
Mobility’s future ability to pay contractual obligations and
liquidity will depend on operating performance, cash flow and
ability to secure adequate financing; Surf Air Mobility’s limited
operating history and that Surf Air Mobility has not yet
manufactured any hybrid-electric or fully-electric aircraft; the
powertrain technology Surf Air Mobility plans to develop does not
yet exist; the inability to maintain and strengthen Surf Air’s
brand and its reputation as a regional airline; any accidents or
incidents involving hybrid-electric or fully-electric aircraft; the
inability to accurately forecast demand for products and manage
product inventory in an effective and efficient manner; the
dependence on third-party partners and suppliers for the components
and collaboration in Surf Air Mobility’s development of
hybrid-electric and fully-electric powertrains, and any
interruptions, disagreements or delays with those partners and
suppliers; the inability to execute business objectives and growth
strategies successfully or sustain Surf Air Mobility’s growth; the
inability of Surf Air Mobility’s customers to pay for Surf Air
Mobility’s services; the inability of Surf Air Mobility to obtain
additional financing or access the capital markets to fund its
ongoing operations on acceptable terms and conditions; the outcome
of any legal proceedings that might be instituted against Surf Air,
Southern or Surf Air Mobility; changes in applicable laws or
regulations, and the impact of the regulatory environment and
complexities with compliance related to such environment; and other
risks and uncertainties indicated in the prospectus.
Forward-looking statements are based on the opinions and estimates
of management at the date the statements are made and are subject
to a variety of risks and uncertainties and other factors that
could cause actual events or results to differ materially from
those anticipated in the forward-looking statements. Although Surf
Air Mobility believes that the expectations reflected in the
forward-looking statements are reasonable, there can be no
assurance that such expectations will prove to be correct. Surf Air
Mobility cannot guarantee future results, level of activity,
performance or achievements and there is no representation that the
actual results achieved will be the same, in whole or in part, as
those set out in the forward-looking statements and financial
projections. Forward-looking statements speak only as of the date
they are made. Readers are cautioned not to put undue reliance on
forward-looking statements, and Surf Air Mobility does not
undertake any obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by law.
Additional information regarding these and other factors that
could affect SAM’s results is included in SAM’s SEC filings, which
may be obtained by visiting the SEC’s website at www.sec.gov or the
investor relations page on SAM’s website at
https://investors.surfair.com under the “Financials—SEC Filings”
section. Information contained on, or that is referenced or can be
accessed through, our website does not constitute part of this
document and inclusions of any website addresses herein are
inactive textual references only.
1Based on the number of scheduled flight departures during 2022
2Financial results are derived from the unaudited pro forma
condensed combined statements of operations for the year ended
December 31, 2022, which combines the historical audited
consolidated statement of operations of Surf Air for the year ended
December 31, 2022 and the historical audited consolidated statement
of operations of Southern for the year ended December 31, 2022 on a
pro forma basis to reflect certain adjustments as described in
SAM’s registration statement on Form S-1/S-4 (333-272403) 3Please
refer to further details in the company’s registration statement
available on the SEC’s website or the Company’s Investor Relations
website at https://investors.surfair.com/. This press release does
not constitute an offer for the sale of securities.
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For Press: press@surfair.com
For Investors: investors@surfair.com
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