Why Is Surf Air Mobility Stock Surging Premarket On Thursday?

Surf Air Mobility Inc. SRFM shares are trading higher premarket on Thursday. The company stated that it plans to reduce potential future equity dilution by around 90%.

As part of a new financing strategy, the company will amend its share subscription facility with GEM Global Yield LLC to rely more on debt than equity.

The amendment, subject to SEC review, will reduce the number of shares registered by approximately 35.6 million, lowering the use of the equity-backed GEM facility.

Surf Air’s amended registration statement plans to limit its use of the GEM facility to no more than $15 million in 2025, reducing potential dilution by approximately 90%, or 35.6 million shares.

The company has also strengthened its balance sheet by extending secured debt maturities to 2028, reducing costs through M&A synergies, exiting unprofitable routes, and lowering past liabilities. These steps have significantly reduced cash burn.

In 2025, Surf Air plans to focus on profitability, exiting unprofitable routes, deploying new aircraft, addressing maintenance backlogs, and leveraging its SurfOS platform for efficiency.

The company expects revenue to exceed $100 million and to achieve profitability in its airline operations.

Deanna White, CEO of Surf Air Mobility, said, “Our recent $50 million financing enabled us to recalibrate and streamline our business plan so that it will require less capital to achieve profitability in the short- to medium term.”

This week, the company appointed Deanna White as Chief Executive Officer & Chief Operating Officer, after she served as the Company’s Interim CEO & COO since May 2024.

Price Action: SRFM shares are up 20.4% at $4.08 premarket at the last check Thursday.

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