Surf Air Mobility Inc.

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Thank you, operator. Welcome to SURF Air Mobility's first quarter 2025 earnings call. I'm joined today by Deanna White, Chief Executive Officer and Chief Operating Officer, and Oliver Reeves, Chief Financial Officer. Our earnings release can be found on the SEC Egger website and on our SURF Air Mobility investor relations page at investors.surfair.com. During this call, we will discuss our outlook and expectations for future performance. These forward-looking statements may be preceded by words such as we expect, we believe, we anticipate, or other similar statements. These statements are subject to risks and uncertainties, and our actual results could differ materially from the views expressed today. Some of these risks have been set forth in our earnings release and in our periodic reports filed with the SEC. During today's call, we will present both GAAP and non-GAAP measures. Additional disclosures regarding non-GAAP measures, including a reconciliation of GAAP to non-GAAP measures are included in the earnings release we issued earlier today, posted on the Surfer and Mobility Investor Relations website, and in our filings with the SEC. I will now turn the call over to Surfer and Mobility CEO, Deanna White. Deanna?

Thank you, Sam, and thank you to everyone who has joined our call today. Before I review our first quarter financial and operational results, I would like to take a moment to discuss the substantial changes in the economic, regulatory and political environment since the new administration took office. Changing trade policies, tariffs and funding for various governmental functions has wide-ranging implications for the regional air mobility sector, particularly as it relates to areas regulated by the DOT and the FAA. Fortunately, trade policy and tariffs are expected to have minimal impact for surf air mobility. We are an American company that operates almost exclusively in the U.S., primarily flying aircraft manufactured domestically by a U.S. company, Textron Aviation. Textron Aviation has publicly stated tariffs will have little impact to its business. Specific to our supply chain, any work done outside the U.S. such as engine overhauls, is not subject to tariffs. The Essential Air Service Program, which represents approximately 40% of our revenue, is part of the budget reconciliation process currently being reviewed by Congress. While nothing has been decided or implemented this time, we believe that as the lowest cost provider, we have a competitive advantage. The Committee on Transportation and Infrastructure will be meeting this week to review the effectiveness of the FAA Reauthorization Act that was passed last May. One important aspect of that act required the DOT to give equal consideration to cost when selecting the winning bid for EAS routes. This change provides a significant advantage for surfer mobility, as we are often the lowest cost provider on routes below 500 miles. We were recently awarded renewal bids for Du Bois, Pennsylvania and Kalaupapa, Hawaii, representing $7.6 million annually in subsidy revenue. We are monitoring all of these issues very closely. We are engaging with the federal government and are taking proactive steps to mitigate potential negative impacts on our business. Now let me turn to the results of the quarter. I am pleased to share our financial and operational achievements in the first quarter as we continue to execute strongly against each of the phases in our transformation plan. Turning first to our financial results, first quarter revenue was $23.5 million, at the high end of our expected range of $21 to $24 million, keeping us on track to meet our full year expectation of over $100 million in revenue. Adjusted EBITDA loss in Q1 was 14.4 million within the expected range we provided in our last earnings release. Despite being capital constrained for much of the time since our listing, we have repeatedly met or exceeded our guidance. We continue to actively manage our balance sheet and liquidity, and just subsequent to the end of Q1, we raised an incremental 5 million in funding. On the operational front, we had numerous achievements across all three categories within the optimization phase of our transformation plan. Under optimization of airline operations, we completed the relocation of the company systems operation center to the Dallas-Fort Worth area, and we are attracting top aviation talent to our management ranks. Amy Maloof has recently joined as our chief administrative officer. responsible for people and IT operations and customer experience, and brings extensive aviation experience from her tenure at Sabre and FlexJet. Additionally, Bob Waltz has joined as Vice President of Flight Operations, coming from Southwest Airlines and Sun Country. And Daniel Ho has joined as Vice President of Technical Operations and Director of Maintenance, coming from Amazon Air. We also continue to adjust the composition of our aircraft fleet by returning or selling unneeded aircraft and simplifying our fleet to focus on the operationally efficient Cessna Grand Caravan. During Q1, we returned five older aircraft to their lessors. Through our refleeting work, we expect to significantly right-size our fleet and lower both operating and carrying costs. These efforts are in advance of accepting additional new aircraft from our Textron Aviation Order that will provide the capacity necessary to support our expansion into new Tier 1 routes in 2026 and beyond. During Q1, we also made substantial progress toward clearing aircraft maintenance backlogs. The combination of clearing backlogs and utilizing our more efficient aircraft has begun to positively impact our flight completion factor. We experienced a brief service interruption in the first quarter related to maintenance issues, which we successfully addressed to return to more effective operational levels. This positive momentum has continued in the first six weeks of the second quarter, with completion factors now above 92%. With continued investment in maintenance, the execution of our reef leading efforts and the implementation of changes enacted by our strengthened operational leadership team, our objective remains to return to 96% completion factors prior to initiating our route expansion program. Our improved flight completion factor is also driving improvement in customer satisfaction, which is important to our ambition to emerge as a premier branded regional air mobility carrier and platform. We are already noting improvements in Southern Airways post-flight CSAT scores in Q1 compared to the second half of last year. Turning to more recent achievements, we announced that our Mokulele airline operation has entered into an interline agreement with Japan Airlines. There is a large travel market between Japan and Hawaii, and our new agreement with Japan Airlines will enable their passengers to book travel on Mokawele to more destinations within Hawaii. Travelers will be able to book connecting flights through Honolulu International Airport to airports served by Mokawele Airlines. Similarly, Mokawele passengers will have the ability to book connecting international flights to Japan via Japan Airlines. The interline agreement with JAL is our fifth interline agreement. joining American, Alaska, Hawaiian, and United, and expanding our potential access to over 435 million of their customers. The next initiative in our optimization phase is recalibrating our on-demand business. We exited several charter products to focus on profitability over near-term market penetration and launched a new jet card in Q1. to simplify pricing options and broaden our product offering. We recently signed volume purchase agreements to improve margins with two operators who are also beta users of the SurfOS platform. In an effort to integrate our on-demand offering under the umbrella of our branded regional air mobility experience, we have invested in rebranding this business. Our future regional air mobility customers will benefit from a seamless experience whether they choose to fly our point-to-point scheduled service or fly a more bespoke offering through operator partners in our on-demand service. The third category under the optimization phase is driving efficiencies from SurfOS. In our earnings release, we have provided a comprehensive list of achievements, including the launch of self-service flight changes and cancellations via chat. which have reduced the company's call center traffic volume by approximately 20%. Our investment in software is creating other opportunities for the company. Last week, DOT Secretary Sean Duffy submitted a plan to replace the AT&TC infrastructure in the U.S. This presents an opportunity for Surf Air Mobility to leverage the capabilities of our Surf OS system to improve the air traffic control system. We have recently met with the DOT and the FAA to showcase our proprietary SURF OS software suite, focusing on four potential applications. First, Tower OS, which is a data system and AI layer that would impact ATC decision-making by providing tower operators with critical aviation data and safety-related insights to optimize airspace management. Second, resource planning, a dynamic scheduler using Palantir's Foundry platform, a workload distribution tool for smart scheduling to help ensure peak efficiency without overloading staff. Surfer Mobility is currently utilizing dynamic schedulers within its own operations. Third, Safety Hub, an AI risk assessment tool which ingests all flight risk assessment reports incident reports, aviation safety action reports, and anonymous near-miss reports across all operators. Surfer Mobility is also using this feature. Finally, CrewApp, a full-service management system that automates and streamlines common required tasks, letting pilots focus on their core tasks while ensuring the data is reliable and actionable. This application can be applied to the work activities of an air traffic controller similar to how SURF Air Mobility's pilots are currently using the Crew app today. The ATC opportunity illustrates the versatility of SURF OS, the power of data and insight available from Palantir's platform, and the ways in which this software and data can be leveraged into specific modules that can be adapted to meet industry needs at speed. Looking beyond our air mobility operations and our SURF OS initiatives, I would also like to note that we continue to make substantial progress on the electrification initiative under the acceleration phase of the transformation plan. At this time, I can report that we are in late stage discussions with key partners to advance our work, and we look forward to sharing details on the electrification plan in the near future. So, in summary, we delivered on our financial guidance in Q1. with revenues near the top end of our range and adjusted EBITDA within our guided range. And as you can see from the operational achievements in the first quarter, the improvements we are implementing, the efficiencies that we are gaining, and from the team that we are building, we have strong operating momentum, a clear vision of where we're going, and a tangible strategic plan to become a premier regional air mobility platform. The investments that we made in our airline operations in Q1 continue to drive improvements, and we remain committed to our goal of achieving positive adjusted EBITDA in our airline operations in 2025. With that, let me now turn the call over to Oliver to discuss our Q1 results and our outlook for Q2.