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New Alert: Surf Air Mobility Inc. (NYSE: SRFM)
SRFM is our new NYSE alert.
SRFM is positioned at the intersection of some of the hottest growth industries today – electrification, technology, air mobility and AI.
We were among the very first to bring SRFM to your attention.
Following our first alert on November 26, the stock climbed nearly 89% by December 30.
And after our most recent alert in June, SRFM rallied from 2.35 to a high of 9.91 in July.
That is gains of +321% in a little over a month.
When we alerted it in June, we mentioned how it was one of the most under-the-radar plays today.
Now, since reaching 52-week highs, SRFM has been consolidating.
In addition, SRFM had multiple accomplishments over the past month – more about that below.
This NYSE listed company is "building the air mobility platform that will transform regional flying".
SRFM is a "Los Angeles-based regional air mobility platform and one of the largest commuter airlines in the U.S. by scheduled departures".
SRFM has "flown millions of passengers over millions of miles".
It is also the "largest U.S. passenger operator of Cessna Caravans".
SRFM is not just another airline – it's also "developing an AI-powered software platform for the Regional Air Mobility industry".
One of "Top 5 Shareholders" includes $360 billion software giant Palantir, which now owns over 4.46 million shares in SRFM as of June 18, 2025.
In fact, Palantir recently increased their shares of SRFM, "by acquiring 1,270,869 shares".
Together, they are "developing category-defining software for the industry with Palantir".
But that's not all…
In May, SRFM announced that "Co-Founder and Member of the Board, Sudhin Shahani, purchased over 400,000 shares of Surf Air Mobility Inc. Common stock at the market price, totalling approximately $1 million.
The next frontier isn't Mars (at least not yet).
Its regional airports – specifically, thousands of short-haul routes connecting all of America.
That's where the real opportunity is.
"Why drive to your neighboring city or region when you can fly?"
Over the past 30 years or so, the standard response has been because driving is cheaper, more convenient, and probably faster door to door.
That may not be true for much longer, however.
In fact, if you've used any ride sharing services recently, have you noticed how the car trip might sometimes cost more than a budget airline ticket?
This isn't a pre-revenue company either, like many of its competitors…
In March, the company announced:
- "Fourth Quarter Revenue of $28.05 Million Rose 5% Compared with Revenue of $26.8 Million in the Prior Year, Exceeding Expectations of $25 - $28 Million"
In May, the company announced:
- "First Quarter Revenue of $23.5 Million, Achieving the High End of Guidance Range of $21 - $24 Million"
Importantly, "Recurring government contracts currently drive ~43% of total revenue".
As the company explains:
"Created by Congress in 1978, the EAS program ensures that small communities receive air service to connect them with the large U.S. aviation infrastructure. The Department of Transportation (DOT) selects air carriers to provide service to eligible communities with subsidies."
There are more than "112 EAS communities available".
With "$550M Total EAS subsidies available".
Diving deeper into the company…
The company is creating a platform to commercialize electrified aircraft.
…and it "plans to offer its software and electrification solutions to the Regional Air Mobility industry to improve safety, efficiency, and profitability".
"Regional Air Mobility will experience transformational growth over the next decade".
Some models are suggesting a total addressable market of "passenger revenue of $75 billion to $115 billion by 2035".
Here's why SRFM is "uniquely positioned to win in the Regional Air Mobility ('RAM') market":
- "One of the largest regional commuter airlines in the U.S. flying over 330K passengers per year"
- "Established operations and brand in a highly regulated industry"
- "Exclusive relationships with Textron Aviation and Palantir Technologies"
- "Expansive distribution channel through major carrier interline agreements and 400+ regional air operators³"
- "Proprietary Al-enabled software to drive growth and profitability"
- "Deep management expertise across aviation, software, and electrification"
In May, SRFM announced a big accomplishment:
"Mokulele Airlines and Japan Airlines Announce New Interline Agreement"
- "Interline flights will connect the large air travel market between Japan and Hawaii by expanding direct flight access for Japan Airlines passengers to more Hawaiian airports."
Now, SRFM, "through its subsidiary airline brands, Southern Airways and Mokulele Airlines, has interline agreements with five large commercial air carriers:
- "American Airlines"
- "United Airlines"
- "Alaska Airlines"
- "Hawaiian Airlines"
- "Japan Airlines"
…"who fly a cumulative ~435 million passengers per year"".
Over the past month, SRFM had several big announcements.
In June, the company announced:
"Surf Air Mobility Introduces Flagship SurfOS™ AI-Enabled Product Suite for Air Mobility Industry"
Here are the highlights from this press release:
- "Unveils BrokerOS, OperatorOS, and OwnerOS: a unified, AI-enabled software platform to make the Air Mobility industry more efficient, reliable, and profitable."
- "Software tools are being designed to serve the current regional aviation industry while laying the foundation for the future Air Mobility customer landscape."
This could be a big opportunity for the company:
- "BrokerOS is currently being used to manage the Company's Surf On Demand charter service and, once commercially available, will target the hundreds of Part 295 private charter broker companies and thousands of travel agents worldwide."
- "Once commercially available, OperatorOS will target the 1,800+ Part 135 operators, of which the Company's commuter airline, Southern Airways, is one of the largest in the U.S. by scheduled departures."
- "Once commercially available, OwnerOS will target the owners of the 11.7K+ Part 135 aircraft in use today."
As the company further explains:
"While SurfOS is positioned to serve the Regional Air Mobility industry, which is projected to be $75–$115 billion globally by 2035, the first commercial software products will have a more immediate impact on today's private aviation landscape. BrokerOS and OperatorOS are designed to address the global private jet charter services market, an estimated $41 billion opportunity by 2029, while OwnerOS is designed to address the estimated $40 billion global private aircraft sales market."
In addition, the company also announced:
"Surf Air Mobility Reports Key Achievements in Optimization Phase of Transformation Plan"
As the company explains:
"The Optimization phase is focused on operational improvements and internal SurfOS™ technology deployment to achieve profitability in the Company's airline operations this year, defined as positive Adjusted EBITDA."
Recent Optimization phase key achievements include:
Optimize airline operations (Southern Airways and Mokulele Airlines)
- "Steadily improved controllable completion factor over the past several months with an increase of 10% compared to FY24."
- "Steadily improved D0 (on time departures) over the past several months with an increase of 21% compared to FY24."
- "Steadily improved A14 (arrivals within 14 minutes of planned schedule) over the past several months with an increase of 21% compared to FY24."
- "Recently won a bid contract renewal in one Essential Air Service community, resulting in ~$9.9 million of additional subsidy revenue over the next 4 years."
In addition, the company also announced:
"Surf Air Mobility Announces Closing of $27 Million Registered Direct Offering of Common Stock"
As the company explained in the press release:
"The gross proceeds to the Company from the offering were approximately $27 million, before deducting the placement agent's fees and other offering expenses payable by the Company. The Company currently intends to use the net proceeds from the offering to pay down certain indebtedness and for general corporate purposes."
Make sure to do your own due diligence.
Sources: McKinsey, Presentation, LP, GF, PR1, PR2, PR3, PR4, PR5, PR6, PR7, PR8, PR9, YF, Website, Chart
Happy Trading!
AwesomeStocks
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