Shares of Archer Aviation Inc. ( ACHR ) are rising Monday after the company announced a major partnership with Korean Air.
What To Know: Korean Air selected Archer as its exclusive partner to introduce Electric Vertical Take-Off and Landing, or eVTOL, aircraft in Korea. The deal includes the potential for Korean Air to purchase up to 100 Midnight aircraft to be deployed across multiple use cases.
In 2022, Korea's Ministry of Land, Infrastructure and Transport announced eVTOL and urban air mobility adoption as a priority for the Korean government. Korean Air and Archer will work towards jointly commercializing Archer's Midnight eVTOL aircraft to address multiple national priorities across Korea, starting with government applications.
This partnership aims to accelerate the introduction of differentiated aircraft capabilities in the near term while laying the foundation for the broad adoption of Archer's aircraft in Korea across multiple end markets and use cases.
"Korean Air's expertise in aerospace and their comprehensive strategic vision for the future make them the ideal partner for Archer,” said Archer CEO Adam Goldstein. “We are excited to introduce Midnight alongside them in one of the world's largest aerospace markets."
Midnight is a piloted aircraft designed to carry four-passengers and perform rapid back-to-back trips with minimal charge time between flights. It has the potential to replace 60–90-minute commutes by car with 10–20-minute electric air taxi flights that are safe, sustainable, low-noise and cost-competitive with ground transportation.
"By combining Archer's industry-leading eVTOL technology with Korean Air's five decades of aerospace MRO and manufacturing expertise and strong commitment to innovation, we aim to lay the foundation for the next generation of air mobility in the Republic of Korea,” Head of Korean Air’s Aerospace Business Jin Kyu Lim said.
ACHR Analysis: From a technical perspective, Archer stock is currently trading well above both its 50-day moving average of $9.98 and its 200-day moving average of $9.56, suggesting a bullish trend. The relative strength index (RSI) stands at 51.33, indicating a neutral position, which suggests that the stock is neither overbought nor oversold at this moment.
Archer’s market capitalization of $7.25 billion positions it as a mid-sized player within the aviation sector, especially when compared to larger competitors like Joby Aviation and United Airlines. This relative positioning may attract investors seeking growth opportunities in a rapidly evolving industry.
ACHR Price Action: Archer shares were up 4.63% at $11.77 at the time of publication on Monday. The stock is trading within its 52-week range of $2.98 to $14.62, reflecting a strong upward momentum that has contributed to a year-to-date performance increase of 21.5%.
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