Surf Air Mobility Provides Airline Operations Business Update, Highlighting SurfOS-Driven Efficiency and Electric Aviation Priorities in Hawaiʻi

LOS ANGELES--(BUSINESS WIRE)--Surf Air Mobility Inc. (NYSE: SRFM) (“Surf Air Mobility” or the “Company”), a leading air mobility platform, today provided an update on the Company’s recent achievements and priorities for its airline operations business, which includes Mokulele Airlines (“Mokulele”) in Hawaiʻi and Southern Airways on the U.S. mainland.

Recent Highlights:

• Delivered SurfOS-enabled efficiency gains, including a 6% reduction in direct operating cost per block hour, a 9% reduction in fuel burn per block hour, a 9% reduction in pilot cost per block hour, and a 15% improvement in labor productivity per block hour YTD 2026
• Ended the second quarter of 2026 with a controllable completion factor of 98% and on-time arrivals of 88%
• Grew Mokulele revenue approximately 7% year-over-year in the second quarter of 2026
• Deployed SurfOS flight management, crew reserve, and fuel optimization modules across the Company's airline operations
• Secured a four-year Essential Air Service contract from the U.S. Department of Transportation to continue service to Lanaʻi, representing $19.4 million in subsidies (excluding passenger fare revenue). The contract doubles the term of the prior award and provides contracted revenue through August 2030.
• Completed an electric aircraft demonstration program in Hawaiʻi with BETA Technologies (“BETA”), with support from Hawaiian Airlines. BETA's ALIA CTOL aircraft flew 64 demonstration flights across four islands to evaluate the operational, economic, and infrastructure requirements for electric aircraft in the state
• Became the first Part 135 passenger operator to join the FAA-sponsored Center for Advanced Aviation Technologies ("CAAT") Consortium, giving the Company eligibility for FAA-funded task orders and visibility into FAA research priorities
• Joined the Federal Aviation Administration's Strategic Management of Airspace, Routes, and Trajectories (“SMART”) initiative as a Participating Airspace User
• Completed implementation of a Safety Management System (SMS) across the Company’s airline operations, ahead of the FAA's compliance deadline for Part 135 operators
• Relaunched Mokulele scheduled service between Kona and Kahului, reconnecting Hawaiʻi Island and Maui for the first time since 2023
• Right-sized the fleet to efficiently support a transformed airline, including realigning its financing

Priorities for the Fourth Quarter of 2026 and Into 2027:

• Grow profitability for the Hawaiʻi and mainland networks as the Company begins the Expansion Phase of its Transformation Plan, building on the positive Adjusted EBITDA its airline operations achieved in full year 2025
• Complete the digitization of crew scheduling and payroll, dispatch, and maintenance operations on SurfOS
• Position Hawaiʻi as the launch market for electric aviation, using insights from the BETA demonstration program to deploy cargo and passenger service with BETA’s ALIA CTOL aircraft, once certified
• Refresh the Mokulele and Southern Airways brands and elevate the customer experience, with upgrades to lounges, aircraft, and customer service

Louis Saint-Cyr, President of Airline Operations of Surf Air Mobility, said: "We've built a leaner, more reliable airline by investing in technology, operations, and the customer experience. SurfOS has already helped reduce our direct operating cost per block hour by 6% this year, and we expect more as we fully digitize the airline. Our digital foundation also positions us to lead in electric aviation, starting in Hawaiʻi. The demonstration flights with BETA gave us real operating data on the routes we fly every day, and Hawaiʻi's short interisland hops make it the ideal launch market for electric aircraft, which we expect will further lower our costs and strengthen profitability."

About Surf Air Mobility

Surf Air Mobility is a leading air mobility platform. With its AI-enabled SurfOS software, Surf Air Mobility provides technology designed to support the modernization of air operations and the adoption of next-generation aircraft. Surf Air Mobility currently operates one of the largest commuter airlines in the United States by scheduled departures and provides private charter services. Together, these businesses provide the operational scale and real-world operating data to validate and deploy its software. These capabilities position Surf Air Mobility as a leader shaping a more efficient, connected, and accessible future for aviation.

Forward-Looking Statements

This Press Release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding Surf Air Mobility’s profitability and future financial results and its ability to achieve its business objectives. Readers of this release should be aware of the speculative nature of forward-looking statements. These statements are based on the beliefs of the Company’s management as well as assumptions made by and information currently available to the Company and reflect the Company’s current views concerning future events. As such, they are subject to risks and uncertainties that could cause actual results or events to differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, among many others: Surf Air Mobility’s ability to anticipate the future needs of the air mobility market; 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; the dependence on third-party partners and suppliers for the components and collaboration in Surf Air Mobility’s development of its advanced air mobility software platform, 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 Mobility, the risks associated with Surf Air Mobility’s obligations to comply with applicable laws, government regulations and rules and standards of the New York Stock Exchange; and general economic conditions. These and other risks are discussed in detail in the periodic reports that the Company files with the SEC, and investors are urged to review those periodic reports and the Company’s other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov, before making an investment decision. The Company assumes no obligation to update its forward-looking statements except as required by law.