Surf Air Mobility Inc. (SRFM) stock rose in Monday premarket trading after the company said it will participate in a Federal Aviation Administration program to modernize U.S. airspace management.

Surf Air Mobility signed a memorandum of agreement with the FAA to serve as a Participating Airspace User in its Strategic Management of Airspace, Routes, and Trajectories, or SMART, program.

FAA Taps Surf Air For SMART Program

SMART is part of the FAA's broader effort to upgrade air traffic management automation through its Brand-New Air Traffic Control System initiative.

The program includes SMART Schedules and SMART Trajectories. SMART Schedules analyzes airline schedules, weather, airport capacity, and airspace conditions before departure. Meanwhile, SMART Trajectories focuses on day-of-flight coordination between airlines and air traffic control.

The FAA aims to create a shared, data-driven view of airspace conditions. That could help airlines and controllers address potential conflicts before flights depart.

Surf Air will contribute operational data and feedback. It will also assign experts from network planning, flight performance engineering, dispatch, and flight operations to the FAA's SMART Innovation Lab.

SurfOS And Palantir Technology Support Participation

Surf Air said its role draws on experience operating Southern Airways and Mokulele Airlines.

The company will also use expertise developed through SurfOS, its artificial intelligence-enabled aviation software platform powered by Palantir Technologies Inc. (PLTR).

Surf Air operates scheduled flights under Part 135 regulations. As a result, the company said it can provide real-world insight into the scheduling and flight-path challenges the SMART program is designed to address.

The initiative also fits Surf Air's broader strategy to expand SurfOS, scheduled airline operations and its Surf On Demand charter business.

Analysts See Upside In Surf Air Stock

Surf Air carries a Buy consensus rating with an average price forecast of $3. The forecasts range from $1 to $5.

Canaccord Genuity maintained a Hold rating and cut its price forecast to $1 on August 17. Northland Capital Markets initiated coverage with an Outperform rating and a $5 price forecast on May 7. Canaccord previously lowered its price forecast to $2.25 while maintaining Hold on March 16.

SRFM Price Action: Surf Air Mobility shares were up 9.01% at $1.21 during premarket trading on Monday, according to market data.