SANTA CLARA, Calif. - Archer Aviation Inc. (NYSE:ACHR), specializing in electric vertical takeoff and landing (eVTOL) aircraft, has achieved a significant regulatory milestone by obtaining its Part 135 Air Carrier & Operator Certificate from the Federal Aviation Administration (FAA). This certification positions Archer, now one of only two air taxi manufacturers globally with such credentials, to commence commercial operations using conventional aircraft to fine-tune its systems and procedures.
The company's subsidiary, Archer Air, demonstrated compliance with the FAA's stringent safety and operational standards, a process that involved multiple stages including extensive documentation and pilot proficiency demonstrations. In tandem with its previously acquired Part 145 certificate, Archer is now equipped with two crucial FAA endorsements necessary to initiate air taxi services upon its Midnight aircraft's Type Certification.
Adam Goldstein, Founder and CEO of Archer, highlighted the company's commitment to safety and operational excellence as it prepares to launch one of the world's inaugural electric air taxi services. United Airlines, a future operator of the Midnight aircraft, through its CFO Mike Leskinen, commended Archer's progress and shared enthusiasm for the potential transformation of urban transportation.
Archer's Midnight is designed as a piloted, four-passenger eVTOL aircraft capable of rapid consecutive flights with minimal recharging time, aiming to significantly reduce urban commute durations. The company's vision is to offer an eco-friendly, noise-sensitive, and competitively priced alternative to traditional ground transport.
This development is based on a press release statement from Archer, detailing the company's ongoing collaboration with the FAA and its progress towards introducing innovative urban air mobility solutions.
In other recent news, Archer Aviation Inc. has made significant strides in its business operations. The company reported a robust first quarter in 2024, exceeding flight test goals for its flagship electric aircraft, Midnight, and advancing in manufacturing and international partnerships. Archer's liquidity remains strong at approximately $523 million, and it anticipates increased revenue recognition throughout the year.
In a strategic move, Archer Aviation announced a joint venture with KakaoMobility, a leading taxi-hailing and ridesharing platform in Korea. The partnership aims to integrate Archer's Midnight aircraft into Kakao T, providing air taxi flights to approximately 30 million app users starting in 2026. Canaccord Genuity maintained a Buy rating on Archer Aviation following this announcement, with a steady price target of $9.00.
The company has also reached a pivotal regulatory milestone with the Federal Aviation Administration (FAA), advancing closer to bringing electric flying taxis to market. The FAA issued the final airworthiness criteria for Archer's Midnight aircraft, a necessary step toward achieving Type Certification for the eVTOL model. Archer is gearing up for piloted flight testing later this year, a crucial part of the 'for credit' testing process with the FAA.
InvestingPro Insights
Archer Aviation Inc. (NYSE:ACHR), a pioneer in the electric vertical takeoff and landing (eVTOL) aircraft industry, has recently celebrated a major regulatory success, but what does the financial data say about the company's current standing? According to InvestingPro data, Archer has a market capitalization of $1.05 billion, reflecting the market's optimism about its future prospects. However, the company's Price/Earnings (P/E) ratio stands at a negative -0.21, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at -2.28, indicating that investors are not anticipating profits in the near term.
Despite the challenging financial metrics, including an operating income of negative $477.1 million for the same period, Archer's stock has experienced a significant return over the last week, with a 7.97% price total return. This short-term gain may reflect investor confidence following the FAA certification news. Nevertheless, the stock has faced a downward trend over the longer term, as evidenced by a 6-month price total return of -47.58%.
InvestingPro Tips suggest that while Archer holds more cash than debt on its balance sheet, indicating a certain level of financial stability, the company is quickly burning through cash and analysts do not expect it to be profitable this year. Additionally, the stock's price movements have been quite volatile, which could be a point of consideration for potential investors.
For those considering an investment in Archer or seeking a deeper dive into the company's financials, InvestingPro provides a wealth of additional tips. There are currently 12 more InvestingPro Tips available for ACHR at https://www.investing.com/pro/ACHR, which could offer valuable insights into the company's performance and outlook. To access these tips and more comprehensive analysis, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. This promotion could be particularly beneficial for investors who want to stay informed about the rapidly evolving eVTOL industry and Archer's place within it.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.