Archer Air, operator of electric air taxis, cleared by FAA to operate an airline

By Tomi Kilgore

Backed by United Airlines and Boeing, Archer's Midnight air taxi can cut commutes of 60 to 90 minutes to 10 to 20 minutes

Shares of Archer Aviation Inc. got a lift Wednesday after company, which operates electric air taxis, said its Archer Air subsidiary received certification from the U.S. Federal Aviation Administration to operate as a commercial airline.

The receipt of the Part 135 Air Carrier & Operator Certificate from the FAA comes about four months after the company received its Part 145 certificate, which allows it to perform repair services on specialized aircraft.

Archer's stock (ACHR) climbed 6.2% in morning trading. It has now bounced 14.6% since closing at a one-year low of $3.01 on May 29.

The maker of electric vertical takeoff and landing, or eVTOL, aircraft, has been backed by Boeing Co. (BA) and United Airlines Holdings Inc. (UAL).

The company said the Part 135 certification comes in advance of the launch of its Midnight aircraft into service for airlines like United when it receives Midnight's type certification.

"The pace of progress and innovation that Archer has achieved over the last few years is nothing short of impressive and today marks another key milestone in their journey to bring safe, sustainable and low-noise air taxi services to market," United Airlines Chief Financial Officer Mike Leskinen said.

Archer said its goal is to evolve urban travel by replacing commutes that would take 60 to 90 minutes by car with commutes of 10 to 20 minutes by air taxi that are "safe, sustainable, low-noise" and cost-competitive with ground transportation.

The four-passenger Midnight eVTOL aircraft can operate flights with "minimal" charge time in between, the company said.

Archer's stock has tumbled 43.8% year to date, while shares of rival eVTOL company Joby Aviation Inc. (JOBY) have dropped 24.2% and the S&P 500 index SPX has gained 11.5%.

-Tomi Kilgore

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06-05-24 1056ET

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