Surf Air Mobility Announces Q2 Controllable Completion Factor Of 98% And On-Time Arrivals Of 88%; Targets Profitability Growth For Hawaiʻi And Mainland Networks As It Begins Expansion Phase Of Transformation Plan, Building On Positive Adjusted EBITDA Achieved In FY2025

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 2026Ended 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 2026Deployed SurfOS flight management, crew reserve, and fuel optimization modules across the Company's airline operationsSecured 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 stateBecame 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 prioritiesJoined the Federal Aviation Administration's Strategic Management of Airspace, Routes, and Trajectories ("SMART") initiative as a Participating Airspace UserCompleted implementation of a Safety Management System (SMS) across the Company’s airline operations, ahead of the FAA's compliance deadline for Part 135 operatorsRelaunched Mokulele scheduled service between Kona and Kahului, reconnecting Hawaiʻi Island and Maui for the first time since 2023Right-sized the fleet to efficiently support a transformed airline, including realigning its financingPriorities 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 2025Complete the digitization of crew scheduling and payroll, dispatch, and maintenance operations on SurfOSPosition 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 certifiedRefresh the Mokulele and Southern Airways brands and elevate the customer experience, with upgrades to lounges, aircraft, and customer service