Good afternoon, everyone. This is Jack Uhl at the Jefferies Aerospace and Defense Equity Research Team. We're moving on to our next session on the fourth annual Jefferies Innovative Aerospace Virtual Summit. The next session will be Surf Air Mobility, and we're lucky enough to have Deanna White, CEO, and Oliver Reeves, CFO. Thank you both very much for joining us. Looking forward to having you guys on the summit. I think I'll kick it to both of you just to give your quick bios, and then we can jump in the Q&A. Sure. Thank you for inviting us, Jack. I'm Deanna White. I've been years in aviation with a commitment to transforming flight. I've been with Surf Air six years, and before that, I was the CEO of Wisk, where I led the business operations and commercialization of an R&D eVTOL aircraft program. Prior to that, I served as the CFO and the CEO of Bombardier Flexjet. Hi, Jack. I'm Oliver Reeves. I'm the CFO of Surf Air Mobility. I've been the CFO since 2024. Prior to joining Surf Air, I was the chief strategy officer of Xinuos, which is the developer and licensor of UnixWare and the OpenServer operating systems, a software background. That's great. Well, I appreciate the background, with that, maybe we can jump right in the Q&A. I think just to start off, it'd be great if you could just tell us a little bit more about Surf Air Mobility, maybe for those a little bit less familiar on the call, just discussing the company a bit, the markets you're operating in, and maybe the competitive backdrop right now and what differentiates Surf Air. Thanks, Jack. Surf Air Mobility is building a leading air mobility platform to transform flight. Today, we operate three interconnected businesses that operate within regional air mobility and also support the development of a platform. We are one of the largest commuter airlines in the U.S. We have a decade of experience flying short-haul route networks, both in the U.S. and the inter-islands of Hawaii. We also have an on-demand private charter business supported by a network of over 440 operators that help satisfy the demand from our customers. In addition, we're building a digital infrastructure called SurfOS that will enable our air mobility platform, and we're building this in a partnership with Palantir. They're one of our largest shareholders in helping us deliver this product to ourselves and the marketplace. In fact, Liam Fayed, our co-founder, recently presented our BrokerOS first commercially viable product at the AIPCon last week. That was an exciting moment for us. Surf Air's Palantir relationship is one that's exclusive with respect to the configuration and sell of software to Part 135 operators and brokers within the regional air mobility space. Lastly, it is our vision to adopt next-gen aircraft into both our operations and into the platform that we're building for air mobility. That's a great overview, I think a great place to kick off, and it sounds like a lot of exciting happenings right now at Surf Air. Maybe just to frame the market a bit, we've heard varying estimates for the size of the overall air mobility market from the hundreds of billions to trillions. It'd be great to hear how you think about your TAM for the Surf Air Mobility product. We operate our businesses in a unique segment of that marketplace. We focus on short-haul regional routes. We believe regional flying is where the next growth segment will be for broader aviation because of the introduction of electrification technologies and AI-enabled software. It's going to happen first there in the smaller aircraft space. We are very excited to be positioning ourselves at the center of this market, both not only as an operator, but as a technology provider for this space. Surf Air has a platform anchored by SurfOS that's targeting charter aviation, scheduled airline services in the MRO aftermarket for smaller aircraft, and we believe this represents an estimated $156 billion global opportunity for Surf Air with our products and our services. We're real excited about that. That's a very helpful framework to think about the market. I know you've recently shifted your electrification strategy from developing an electric powertrain for the Caravan to a partnership with Beta Technologies. It'd be great to hear how this partnership fits into your go-to-market strategy for electric aviation. Sure, great. In March of this year, we announced a strategic partnership with Beta Technologies. In that, we placed a firm order for 25 all-electric Beta aircraft with an option for 75 more. We are also designated as Beta's launch operator for commercial passenger electric service. The order includes both CTOLs and VTOL variants and also cargo and passenger configurations. Surf Air will become Beta's exclusive MRO in Hawaii, where we intend to have as our launch market. Hawaii is a really great market to launch electric aircraft because of the short-haul nature of all the interline flying that we do there today. We've had many years to develop an operating foundation there with revenue-generating flights today that we can introduce a Beta aircraft into. We're going to be starting demonstration cargo flights this month, and ultimately, we'll be doing passenger service on these electric aircraft in the future. This Beta relationship remains central to our ambitions to adopt next-gen aircraft. It preserves our first-mover position in commercial electric aviation. It allows us to eliminate the need to invest over $100 million in the electrification powertrain project that we had previously. That's great, and makes a lot of sense, and appreciate the examples with the inner island in Hawaii. I'll definitely be keeping an eye on that. Sounds like a great test case for this next phase here. Definitely. maybe just from a higher level, I know for much of the past decade, the advanced air mobility sector has been defined by the race to develop that next-generation aircraft. As we're coming towards that reality of a commercial product, the critical question will be who can successfully operate one? It would be great to hear how you think Surf Air fits into answering that question. Well, we're definitely in line to operate those. All the work we've done building our operational discipline over the last decade. Also in developing SurfOS. It will help power the platform that will help make this electric next generation come to life, creating a real network for revenue-generating flights. We're in a great position to help transition to electric aviation. This transition mirrors what Surf Air Mobility has done on their own. We're moving from a regional airline model to an aviation technology platform. We're going to be Beta's designated launch operator, which means we'll be one of the first to carry passengers commercially on electric aircraft. By doing that, we'll be able to demonstrate the impact of the improved unit economics at scale. With electric aircraft, there's a sustainability benefit, but there's also an economics benefit. 30% lower operating costs through fuel and maintenance is a great benefit to an operator. That's a massive number for a regional operator like ourselves, particularly in a world where fuel prices are very volatile today. Those economics can be extremely transformative to an operator. Oh, absolutely. That kind of segues just a follow-up I have on that, on fuel, right? Today looks a lot different than it did in January and February from a fuel perspective. Even though it's come down a little bit last week, then volatile again this morning, I'm sure just that volatility in fuels, you've become even probably more convicted in your choice of moving to electric, given the savings. I was wondering, does that increase your appetite, I know you have 75 options, for leaning into electric as your next-gen aircraft? It definitely does. It definitely has a big impact. Fuel has such a big impact to us, and the volatility does. It's not just the electric aircraft. We're building AI-enabled tools for the business, and we recently launched an AI agent that was able to help optimize how we procure fuel within our own business and really help our business do that in real time. It was something we launched in the first quarter that really helped out with the problem. Software technology, not just electric aircraft, will really help operators with how they manage fuel and how they manage any of the challenges that come about in the future for them. Absolutely. That's great to hear. Maybe just building off that and turning to the software product. With Surf OS, what's the long-term vision for the operating system? How do you guys think about the evolution of your software product? Surf OS, it's an AI-enabled software. It's operated and powered by Palantir's Foundry. We're developing products that don't exist today. Today, you have a fragmented ecosystem with brokers and operators, we're going to be creating the product that will create a distributed network within brokers, operators, aircraft owners, passengers, where they can all benefit from one place where there's coordinated supply and demand on one single operating system. Operators will be able to use this product to reduce costs and improve fleet utilization. Owners will be able to maximize their aircraft assets and returns on those. Brokers will be able to source the aircraft better to satisfy their customers' demands. Passengers are going to have more real-time availability to, and transparency to competitive pricing for the flights that they're trying to access. None of this is possible today. Like I said, it's a very fragmented ecosystem where all of these players operate with incomplete information. Surf OS and the digital platform that we're building is going to bring all that information together. What's interesting is we have used our own airline operations and our own charter brokerage to be the showcase and the showroom for the technology. We've essentially been the first customer for this product, and we've been able to reap the benefits and seen the improvements we've had within our own business as we've implemented these products. That's a very helpful rundown of SurfOS. I know you had recently announced your first enterprise customer. It'd be great to hear the feedback there, what some of the tangible benefits they've called out, and maybe what you think, you walk through the full suite of product options that it allows, what do you think will be some of the stickiest with customers? Well, Jack, that first enterprise customer is the best customer because it's us. I think what we said was we were our first enterprise customer. The reason is what Deanna said, right? Everything that we do with SurfOS is tested internally. It's tested in our airline operations. It's tested on our on-demand charter business. That allows us to really think through all of those pain points that we feel that the industry is experiencing, such as fuel that Deanna just mentioned. That's very important to us. Really, to come back to the tangible benefits question, in April, we were able to announce an improvement of about 40% in our annual adjusted EBITDA targets. We were able to do that while maintaining our growth targets of 20% to 30% growth, which I think is something that is quite exceptional in terms of thinking about the cost side and the revenue side and how those interact. That is principally driven by the impact that SurfOS is having on our operations. I think the best way to illustrate that is to compare the previous guidance with the new guidance and walk you through step by step what that looks like. On the revenue side, our on-demand private charter will be the largest contributor to our growth in fiscal year 2026, that is a mixture of both a shift in mix to larger bodied aircraft, but also what you're starting to see is that powered by on-demand business coming to life, which is essentially our ability to take our BrokerOS product, give it to independent third party brokers, and have them operate on our platform without the commensurate increase in fixed costs. We're very pleased and very excited about that part of the business. When you double click on that, right, you start looking at numbers, what you're seeing is if you compare Q1 2026 to Q1 2025, our top brokers using BrokerOS are closing 32% more bookings. Our quote to close time has improved 57%, 40% more payments are being processed on our platform. That's just to give you a little bit of a numbers feel for the impact that that's having. There's also impact on the cost side. On the cost side, what we're seeing is a continued reduction in cost. We think that there's going to be about 6% for the airline and 15% from on-demand. Taking a step back, we're also benefiting from one other trend, that is AI-enabled development. When we looked at our initial budgets, Deanna and I spent some time on this, we thought that it was going to be more expensive to develop modules, and they would take longer to bring to market. What we're seeing is with all of the resources that we have and the speed at which they're transforming, we are benefiting from that on the cost side. We're bringing more modules and we're bringing them at a lesser cost. That's costing us less, which is also giving us a benefit in terms of financials. Taking a step back, what you're seeing now is that SurfOS is starting to impact our financials. What we think is as we automate more workflows, these benefits will continue to accrue, but they'll also start compounding. I think that this is reflective of the type of benefits that we can bring to our customers as well. Thank you, Oliver. That was a great rundown. You've highlighted some very measurable operational improvements from SurfOS just there, for Surf Air. How scalable are those benefits as you expand to third party operators, do you think? I think they're very scalable, it comes back to the DNA of the product. I think Deanna mentioned it. I've just mentioned it as well. We're unlike a lot of pure play software providers, right? We live these operations every single day. Every piece of software that we bring to market is something that has helped cure a pain point for us. We believe that as we are one of the largest commuter airlines in the U.S., that we are reflective of the problems in the industry. You mentioned fuel being a big one, right? Our ability to address these problems are real problems that our customers are experiencing. I think we operate with 440 operators. We speak to them every day. We have a really good understanding and a great expertise in this part of the market, and we're translating that expertise into software. What you're seeing for us is going to be further magnified for these smaller operators that have even more volatile issues than we do, where the cost of fuel is more impactful. The type of benefits that we're going to bring them are going to be even more impactful than they are to ourselves. I also suggested that we're at the beginning of the benefits that SurfOS are going to bring. They are scalable, but they also compound because as you bring more supply and demand onto our platform, what you're going to see is the pie grow. As the pie grows, you leverage fixed cost, you start seeing even more benefits, and I think you're going to see some really transformative unique economics emerge from the type of benefits with the software that we can bring. No, that's great and very encouraging from a third party perspective. Maybe to close it out just on SurfOS, it'd be great to hear a little bit more about the commercial strategy going to market and what the revenue model looks like longer term. Sure. We feel that we've got another advantage over pure play software providers in that we operate with 440 operators on a daily basis through our on-demand private charter business. We feel that we have our finger on the pulse because you operate with that many operators, you're really hearing all of the problems that they have and things of that nature. The other side of that is they're also a great distribution channel. When you're able to solve their problems and you're going to put that software package together, they are a natural distribution channel for you to sell. We feel that that is very important. Going back to your question, we have three products that we're bringing to market this year, BrokerOS, OperatorOS, and our enterprise level software. BrokerOS has been commercially live since 2025, and it is already generating revenue via take rate from on-demand charter sales, and it will continue to do so as we grow that business. For 2026, our target is 100 independent brokers, and we want them onboarded by year end. We've got about, I think, keep me honest, Deanna, 29 right now that- 30, yeah. Yeah. We're looking forward to meeting that objective. On the operator side of the business, we're going to launch OperatorOS, that's going to target small to mid-size Part 135 operators, that will have a modular subscription attached, which will vary depending on the size of the operator. It's also going to be incremented by ancillary services that we are going to continue to sell to those operators. As we look to the future, those are areas where we're going to be looking to add a lot more in terms of ancillary upsell potential. The company currently has 17 LOIs. It's generated those from the 440 operators that it currently has, and our ambition is to have five of those onboarded by the end of the year, an additional 10 LOIs by the end of the year. The SurfOS enterprise solution side is something that is slightly different, because that is really where we're working with Palantir's Forward Deployment Engineering team to go and sell directly to large operators, charter brokerages, and aircraft manufacturers. What we've said there is that we're having conversations, our 2026 target is the first multi-year, multi-million dollar enterprise contracts for that SurfOS, which is a special deployment, a customized deployment of our software suite. That's very helpful and a great rundown, the future commercial strategy. Maybe to a related point, you mentioned AI numerous times. It would be great to just maybe put it into one answer of how Surf Air is utilizing AI. Where are you seeing the benefits today, whether it's across revenue management, maybe more the cost structure, customer service? Would love to hear some of the tangible benefits that you're seeing today. Sure, Jack. All of our live operational and commercial data is organized via Palantir's Foundry, and that provides us an AIP, underlying AI infrastructure, for which we are able to develop AI agents that can use that data to autonomously optimize critical workflows within our business. When I'm talking about critical workflows, we're talking about things like dynamic pricing of our products, crew planning, crew scheduling, aircraft sourcing for our charter side of the business, AOG maintenance recovery for our operational side of the business. AI agents and the fuel, like I mentioned before, that can help optimize all of those types of critical workflows, and where we can see benefits from that optimization within our P&L. It's not just the AI tools that we're developing, it's how we're developing them. As Oliver mentioned, we're accelerating the development process of our products through using AI tools. We are able to reduce the development cycles for SurfOS and accelerate the deployment of that. We've done that so far within our own business, and we'll be able to do that with our commercialization of the product third parties. This is allowing us for faster product releases at a lower cost, and those outcomes that are developed by the tools show up in our P&L faster. When we sell these products to third parties, it'll do the same for them. No, that's great, and it sounds like it's already helping. Definitely the bottom line. No, that's great to hear. Just one follow-up I had as we've talked through with the eventual delivery of the Beta aircraft, I know Inter-Island Hawaii is the most first-use applicable test case. Does that aircraft, does the range fit the rest of Surf Air's current network, and maybe what are some of the other early parts of your network that you'd be wanting to deploy that aircraft on? The Beta aircraft order is amazing for us. It provides us a lot of flexibility to use in our business, not only in the networks we operate today, but some of the ones we plan to target in the future. Also it can be a model for our charter business. That order allows us to satisfy those aircraft deliveries within our own network or within our platform. We could actually sell one of those aircraft to a third-party operator or to an individual where we manage the aircraft for them. We can do it both in either a cargo or a passenger configuration. All of our flights we do today are satisfied by the range length of a Beta aircraft. We do the small short-haul network flying, it's a perfect aircraft for our company and the various missions that we do. We do scheduled service, we can do that, we can do a charter of that. We also have, today we do cargo, and we intend to do more of it in the future using these aircraft. They're amazing aircraft. We're real excited to benefit from the economics of them. It's not only the fuel benefit, it's the maintenance benefit. These aircraft can, a Caravan, which is mostly the fleet we operate today, 24 times a year has scheduled maintenance, where you have to take it down out of service for a couple of days to actually maintain the aircraft and regular inspections. With a Beta aircraft, it's two. You can imagine how many more revenue-generating flights you can conduct in a year using a Beta aircraft and the new technology. These aircraft are amazing. They're going to improve the safety, too, of the industry. I always like to say today, when you back up in your car, who turns and looks over their shoulder? You look forward at a screen. All these new next-gen aircraft are built with sensors and technology that will improve the safety. All of that data that will be coming off on all these aircraft will be able to be digested via our platform and our SurfOS product, which will be able to federate that data and summarize it for decision making and the use of AI agents to optimize with. I'm real excited about the Beta partnership and everything that the next-gen aircraft will bring to our business and the industry. No, that's a really insightful answer, I think the maintenance piece, especially two times versus 24, super topical today, just given that the maintenance turnaround times for some of the larger commercial aircraft have become really extended post-COVID due to a variety of reasons. That's very interesting. Also just the flexibility of the order book, whether you operate it, you sell it, you manage it, or you can put it in the actual end use, whether through scheduled charter or cargo, seems like a really great order, a lot of flexibility. I appreciate the answer to that follow-up. I know we're kind of approaching time here, so I would love to give it back to you guys to just, what are maybe the key two to three takeaways you want investors to walk away with today, and looking forward, what are you most excited about for Surf Air? I'm real excited about what's happening in aviation. The convergence of software and electric aircraft is this big opportunity which Surf Air Mobility has positioned themselves to be at the center of. We'll manage operations and the ecosystem on our platform, and next-gen aircraft will be able to lower the cost per seat, making it economically viable to do all this at scale more than we ever have before. The combination of electrification and the digital transformation is going to prove to be one of the most important trends in aviation right now that's shaping the future. It's going to happen first with small aircraft and short-haul flights. It's not going to happen with a 737, right? The transformations that are happening are going to first happen in the playground which we operate in, and that's real exciting for SurfOS because we are perfectly positioned to take advantage of that trend and that opportunity and to be at the forefront of transforming flight. We're real excited about that and all the opportunities that are coming to fruition with our company and all the work we've done to build the operational discipline, to build the network that can now be electrified with all the new next-gen aircraft, and to build the software tools that will also enable the ecosystem and the platform that we're building. That's great. I think a great way to close, and we really appreciate you both supporting the Summit and getting to hear from Surf Air. Like you said, this isn't a drop-in technology for these larger 737s or wide bodies, so we're going to see it first in your neck of the woods. We're excited to watch, and thank you again for supporting the Summit. Thanks, Jack. Very much.