LOS ANGELES - Surf Air Mobility Inc. (NYSE: SRFM), a prominent player in green regional air mobility, has confirmed securing preferred delivery positions for 90 hybrid-electric short takeoff and landing (eSTOL) aircraft from Electra.aero Inc. (Electra), a pioneering aerospace company. This move is aimed at enhancing the reach and sustainability of regional air transportation.
The partnership will see Surf Air integrate the new eSTOL aircraft into its national flight network, including Southern Airways Express and Mokulele Airlines. These aircraft are capable of taking off and landing on very short runways, as little as 150 feet, potentially opening up more direct routes to smaller airports and other new air mobility infrastructures.
In addition to securing the aircraft, Surf Air and Electra will collaborate on developing route networks optimized for the eSTOL aircraft's capabilities. Surf Air will also serve as the preferred lessor and provider of these aircraft to its customers through its Aircraft-as-a-Service leasing program, which aims to make it easier for regional operators to access and grow their fleets.
The collaboration extends to developing fleet-wide data analytics services that will provide real-time aircraft information across Surf Air's network, with the goal of reducing operating costs and improving operational efficiency.
The Electra eSTOL aircraft will join Surf Air's lineup of environmentally friendly vehicles, which includes the electric Grand Caravan and Regent's electric seaglider. The company's CEO, Stan Little, expressed enthusiasm for Electra's innovations in the eSTOL space, which he believes will significantly influence the evolving regional air mobility landscape.
John S. Langford, founder and CEO of Electra, echoed Little's sentiments, emphasizing the partnership's role in advancing the decarbonization of regional business aviation.
Surf Air Mobility, which operates the largest commuter airline in the US, is also developing its own electrified powertrain technology for the Cessna Grand Caravan in collaboration with Textron (NYSE:TXT) Aviation.
This announcement is based on a press release statement.
InvestingPro Insights
As Surf Air Mobility Inc. (NYSE: SRFM) embarks on its ambitious journey to revolutionize regional air mobility with its recent order of eSTOL aircraft from Electra, its financial health and market performance provide essential context for investors. According to InvestingPro data, Surf Air Mobility currently has a market capitalization of approximately $79.52 million. Despite a substantial revenue growth of 112.41% in the last twelve months as of Q1 2023, the company has faced challenges, as reflected by its negative gross profit margin of -5.27% in the same period.
From an investment standpoint, the stock has experienced significant price volatility, with a 1-year price total return of -65.71%, indicating a steep decline in investor confidence. This could be attributed to various factors outlined in InvestingPro Tips, such as Surf Air Mobility operating with a significant debt burden and analysts not anticipating the company to be profitable this year. Furthermore, the company's stock has fared poorly over the last month, with a price total return of -19.4%, highlighting the risks associated with its high volatility.
For those considering an investment in Surf Air Mobility, these metrics suggest caution. Prospective investors should note that there are additional InvestingPro Tips available, providing deeper insights into the company's financials and performance. For example, the company's short-term obligations exceeding its liquid assets and the valuation implying a poor free cash flow yield are critical considerations. Investors can access these additional tips by exploring InvestingPro's full suite of analytics tools, and can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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