Surf Air Mobility Inc. (NYSE: SRFM) shares rose 9.01% to $1.21 in Monday premarket trading. The gain followed the company's announcement that it signed a Memorandum of Agreement with the Federal Aviation Administration (FAA) to participate in the Strategic Management of Airspace, Routes, and Trajectories (SMART) program.
This partnership positions Surf Air Mobility as a Participating Airspace User in the evaluation of tools designed to modernize the National Airspace System. The agreement aligns with the company’s broader strategy to expand its software and operational capabilities.
Operational expertise and data contribution
The SMART initiative is a key component of the FAA’s broader Brand-New Air Traffic Control System overhaul. It operates through two tracks: SMART Schedules, which analyzes airline schedules, weather, airport capacity, and airspace conditions months to days before departure to identify conflicts; and SMART Trajectories, which supports day-of coordination between airlines and air traffic control from pre-departure through arrival. The goal is to provide controllers, the FAA, and airlines with a shared, data-driven view of the airspace to address issues before flights depart.
As a Participating Airspace User, Surf Air Mobility will assign subject matter experts from network planning, flight performance engineering, dispatch, and flight operations to the FAA’s SMART Innovation Lab. The company will contribute operational data and feedback to refine the scheduling and trajectory models used in the evaluation.
The company’s participation draws on its experience operating Southern Airways and Mokulele Airlines, as well as the AI and data infrastructure built through SurfOS, its software operating system powered by Palantir Technologies (NASDAQ: PLTR). The scheduled airline operations provide direct, day-to-day experience with the scheduling and trajectory challenges SMART aims to address, while the development of AI-enabled SurfOS tools offers relevant technical experience for the FAA’s evaluation.
Strategic alignment with profitability goals
This agreement aligns with Surf Air Mobility’s broader strategic initiatives, including becoming a platform for advanced air mobility and developing SurfOS as the operating system for the Part 135 and private aviation industry. The company also plans to be the first Part 135 operator to commercialize electric passenger flights for scheduled service and On Demand charter.
Surf Air Mobility is focused on accelerating paths to profitability across its three business lines:
- SurfOS: Software operating system for aviation
- Scheduled airline operations: Commuter services via Southern Airways and Mokulele Airlines
- Surf On Demand: Private charter services
These capabilities position the company to leverage operational scale and real-world data to validate and deploy its software solutions.
Analyst views and price action
Market sentiment regarding Surf Air Mobility remains mixed but leans toward potential upside based on consensus ratings. The stock carries a Buy consensus rating with an average price forecast of $3. Forecasts range from $1 to $5.
Recent analyst actions include:
| Firm |
Rating |
Price Target |
Date |
| Canaccord Genuity |
Hold |
$1 |
August 17 |
| Northland Capital Markets |
Outperform |
$5 |
May 7 |
| Canaccord Genuity |
Hold |
$2.25 |
March 16 |
Canaccord Genuity maintained a Hold rating while cutting its price forecast to $1 on August 17. Conversely, Northland Capital Markets initiated coverage with an Outperform rating and a $5 price forecast on May 7.
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