Surf Air Mobility Inc. (NYSE:SRFM) reported operational updates across its airline businesses, including Mokulele Airlines in Hawaii and Southern Airways on the US mainland.
The company said its SurfOS software platform contributed to a 6% reduction in direct operating cost per block hour year-to-date in 2026. Fuel burn and pilot costs per block hour both declined 9%, while labour productivity per block hour improved 15%.
Surf Air Mobility ended the second quarter with a controllable completion factor of 98% and an on-time arrival rate of 88%. Mokulele Airlines’ second-quarter revenue increased approximately 7% from the same period last year.
Mokulele Secures Four-Year Essential Air Service Contract
Surf Air Mobility secured a four-year Essential Air Service contract from the US Department of Transportation covering continued service to Lanaʻi.
The contract provides $19.4 million in subsidies, excluding passenger fare revenue, and runs through August 2030. The company said the duration is twice that of the previous award.
Mokulele has also resumed scheduled flights between Kona and Kahului, restoring its service between Hawaii Island and Maui for the first time since 2023.
Electric Aircraft Demonstration Programme Completed in Hawaii
Surf Air Mobility completed an electric aircraft demonstration programme in Hawaii with BETA Technologies and support from Hawaiian Airlines.
BETA’s ALIA CTOL aircraft completed 64 demonstration flights across four islands. The programme evaluated operational, economic and infrastructure requirements associated with potential electric aircraft operations in Hawaii.
The company also became the first Part 135 passenger operator to join the FAA-sponsored Center for Advanced Aviation Technologies Consortium and joined the FAA’s Strategic Management of Airspace, Routes, and Trajectories initiative.
Surf Air Mobility said it completed implementation of a Safety Management System ahead of the FAA compliance deadline for Part 135 operators.
The company’s stated priorities include improving profitability, completing the digitisation of its airline operations through SurfOS and preparing Hawaii as a potential launch market for electric aviation. Any introduction of electric aircraft remains subject to aircraft certification.
Surf Air Mobility stock price
