Thank you for standing by. At this time, I would like to welcome everyone to today’s Surf Air Mobility Second Quarter 2024 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. [Operator Instructions] Thank you. I would now like to turn the call over to Sam Levinson [ph]. Sam, please go ahead.

Thank you, operator. Welcome to Surf Air Mobility’s second quarter 2024 earnings call. I’m joined today by Deanna White, Chief Operating Officer and Interim Chief Executive Officer; and Oliver Reeves, Chief Financial Officer. Our earnings results can be found on the SEC EDGAR website and on our Surf Air Mobility Investor Relations page at investors.surfair.com. During this call, we will discuss our outlook and expectations for future performance. These forward-looking statements may be preceded by words such as we expect, we believe, we anticipate or other similar such statements. These statements are subject to risks and uncertainties, and our actual results could differ materially from those views expressed today. Some of these risks have been set forth in our earnings release and in our periodic reports filed with the SEC. During today’s call, we will present both GAAP and non-GAAP measures. Additional disclosures regarding non-GAAP measures, including a reconciliation of GAAP to non-GAAP measures, are included in the earnings release we issued earlier today, posted on the Surf Air Mobility Investor Relations website and in our filings with the SEC. I’ll now turn the call over to Surf Air Mobility’s Interim CEO, Deanna White. Deanna?

Thank you, Sam. I would like to welcome everyone who has joined our call this evening. As many of you know, I have been with Surf Air Mobility since 2021 and previously served as the Chief Financial Officer. Approximately 90 days ago, I became the Chief Operating Officer and Interim Chief Executive Officer. I know the organization well and understand our opportunities to lead innovation in our industry. I am excited to be here to execute our strategy. Let me start by noting how pleased we are with the financial results of the second quarter. Revenue for the quarter exceeded our expectations and rose over 13% year-over-year on a pro forma basis. Adjusted EBITDA results were materially better than our expectations with an adjusted EBITDA loss of $11.8 million as compared with our expectations of a loss of $16 million to $18 million. Let me take a moment to address the important announcement we made yesterday related to our new venture with Palantir Technologies. We have been working with Palantir since 2021 to develop and deploy software and analytical tools across all three of our air travel brands. Going forward, we will form a new venture with Palantir. Surf Air Technologies LLC to further develop market and sell a software platform solution for the advanced air mobility industry. At the center of this solution sits Surf OS, a category defining operating system and an all in one holistic suite of software tools to enable operators to more efficiently run their businesses. Components will include flight distribution, airline and charter operations, revenue and demand management, business intelligence, financial reporting and customer service. Surf Air Mobility will become the first customer of Surf Air Technologies and will thereafter leverage Palantir sales force to offer Surf OS to Part 135 operators, existing aircraft…

Thank you, Deanna. Revenue in the second quarter of 2024 rose 13.2% over the prior year period on a pro forma basis to $32.4 million, exceeding our expectations of $28 million to $31 million. This double-digit revenue growth was driven by 13.8% growth in scheduled service revenue and 11.7% growth in on-demand service revenue. The increase in scheduled service revenue was primarily driven by the launch of subsidized flight operations on the Lanai route in Hawaii and the Purdue and Williamsport routes. The increase in on-demand service revenue was driven by a 13.1% increase in departures over the comparable period. As Deanna mentioned in her comments and as we discussed on our call last quarter, we undertook an analysis of all of our scheduled routes and have taken steps to either discontinue or improve the profitability of underperforming routes. Overall, increased subsidies and necessary cost cuts contributed to our improved profitability. As a result, our regional airline operations produced positive adjusted EBITDA for the second quarter. Importantly, this did not come at the expense of revenue growth and as expected, does not yet reflect any positive impact from the FAA Reauthorization Act. On a pro forma basis, adjusted EBITDA loss increased modestly year-over-year to $11.8 million from $11.1 million. We are very pleased with this outcome as it is materially better than our expectations of an adjusted EBITDA loss of between $16 million and $18 million for the quarter. Renewed rigor on cost control implemented by the new management team is already beginning to show results and we are now targeting positive adjusted EBITDA at our regional airline operations for the full fiscal year. Turning to liquidity, as of June 30, 2024, Surf Air Mobility had $1.5 million of cash on hand with the ability to draw $90 million in…

Thank you, Oliver. In my new capacity as Chief Operating Officer and interim CEO, I would like to take a moment to share with you why I’m so excited about the opportunities ahead for this company. We are the largest commuter airline operator in the U.S., and we are advancing the very notion of air mobility. We operate in a vast marketplace ripe for disruption. By partnering with Palantir, Textron and other leading organizations, we are bringing new innovations to the market. We are pioneering the path into fertile territory, empowering our operations to capture market growth, drive efficiencies and profitability, and expand our offering across air mobility networks worldwide. We are still in very early innings, but we cannot be more excited about what lies ahead, and we look forward to keeping you apprised of our progress. I would like to thank everyone who has been with us on this call today. I will now turn the call over to our operator, so that we may take some of your questions.

Thanks, Deanna. [Operator Instructions] And while we’re waiting, just want to remind you again, joining us today to answer your questions are Deanna White, Chief Operating Officer and interim CEO; Oliver Reeves, Chief Financial Officer; Sudhin Shahani, Co-Founder of Surf Air Mobility; and Ido Gruberger, Chief Strategy Officer. And it looks like our first question today comes from the line of Austin Moeller with Canaccord Genuity. Austin, please go ahead.

Hi, good afternoon. Just my first question here, what was the passenger load factor on the Purdue and Williamsport routes currently, and how many flights do you schedule per week?

This is Deanna, thank you for your question. You broke up a little bit. It was hard to hear the second part of it. But you were talking about the load factors on our newly launched Purdue and Williamsport routes. The load factors are in the 50% approximately, and improving. And both of those routes have shown us to be profitable for the time we’ve operated them right out of the gate with the private subsidies we have with those two partnerships.

[Indiscernible] How many flights do you have scheduled per week…

Austin, we’re having a hard time hearing you.

Can you hear more?

A little better. Go ahead.

And how many flights you have scheduled on those routes per week?

Austin, this is Deanna. I think you said, how many flights do we have scheduled on each one of those routes per week? I don’t have those exact numbers with me that I can get back with you and circle back with an answer after the call.

Okay, great. Thanks for the details.

All right, thank you, Austin. And ladies and gentlemen, that does conclude our prepared remarks today. Thank you so much for joining, and you may now disconnect. Have a good day, everyone.