Surf Air Mobility Reports Significant Increase in Revenue for Q3 2023
Segments of revenue
In the third quarter of 2023, Surf Air Mobility (SRFM) reported total revenue of $21.97 million, representing a substantial increase of $16.89 million or 332% compared to the same period in 2022. This growth in revenue was driven by changes in on-demand and scheduled revenues. Scheduled revenue increased by $14.55 million or 1,461%, while on-demand revenue increased by $2.33 million or 57%.
SRFM's significant increase in revenue can be attributed to multiple factors. Firstly, the acquisition of Southern contributed to a substantial increase in scheduled revenue, primarily driven by EAS revenue of $7.8 million, passenger revenue of $6.0 million, and other revenue of $0.7 million. Additionally, the company's on-demand charter flights saw a notable increase, with 926 flights conducted in Q3 2023 compared to 425 flights in Q3 2022. This growth can be attributed to increased marketing efforts and the implementation of a successful on-demand product and service strategy.
Despite the overall positive performance, SRFM faced challenges in its membership subscription base, resulting in a decline in total scheduled revenue, excluding the impact of the Southern acquisition. The company experienced a decrease of $0.6 million or -4% in scheduled revenue for the nine months ended September 30, 2023, compared to the same period in 2022. This decline was primarily due to the decrease in the membership subscription base.
The acquisition of Southern played a significant role in SRFM's revenue growth. The company's scheduled revenue increased by $14.6 million or 1,461% for the three months ended September 30, 2023, compared to the same period in 2022. However, when excluding the impact of the acquisition, the total scheduled revenue decreased by $0.6 million or -4%. This highlights the importance of the Southern acquisition in driving SRFM's revenue growth.
Surf Air Mobility demonstrated a remarkable performance in the latest quarter, with a substantial increase in revenue. The acquisition of Southern significantly contributed to the growth in scheduled revenue, while the company's on-demand charter flights also experienced notable expansion. However, SRFM faced challenges in its membership subscription base, resulting in a decline in scheduled revenue when excluding the impact of the acquisition. Overall, SRFM's revenue growth showcases the success of its strategic initiatives and the positive impact of acquisitions on its financial performance.