On Monday, New Yorkers might find themselves exclaiming, “It’s a bird! It’s a plane! It’s an eVTOL aircraft from Joby Aviation!”
EVTOL, short for electric vertical takeoff and landing, is the technological breakthrough that has the potential to revolutionize air travel within cities, promising easier, quieter, and more affordable commutes and short flights.
Excitement is building as aerospace enthusiasts and investors eagerly await a spectacular show in the heart of New York City. Sources indicate that around 11 a.m., a Joby eVTOL will gracefully glide down Manhattan’s West Side, showcasing the impressive progress made in electric aviation.
This significant event signifies that electric-aircraft technology is rapidly advancing towards practical implementation. Such developments bode well for eVTOL manufacturers, even though the frontrunner in this industry is yet to be determined. While Joby is ready to take flight, Archer Aviation has positioned their aircraft for display purposes only, without plans for an actual flight at this time.
In addition to ambitious start-ups, well-established aerospace giants like Boeing and Airbus have also invested in eVTOL programs. This innovative industry has gained financial support from both airlines and automobile manufacturers alike, underscoring its immense potential.
Among the many beneficiaries of this increasing spending and technology development is Blade Air Mobility—a company that currently operates a network of aircraft specializing in services such as transportation to airports and the swift delivery of organs to medical facilities.
Blade confidently places its bets on eVTOL technology, firmly believing that it will exponentially expand the markets it can serve. With lower costs and reduced noise levels, Blade’s operations could be expanded to numerous additional locations, ultimately enhancing accessibility for passengers worldwide.
Blade: A Profitable Player in the Aviation Industry
Blade, a relatively young company, has set itself apart from its competitors with an impressive achievement: profits. In the third quarter, Blade surprised the market by posting a profit and generating positive free cash flow.
While Joby and Archer have experienced significant stock price increases of approximately 20% and 88% respectively in the past year, Blade shares have dropped by about 33%. However, Blade’s success lies in its ability to overcome challenges such as rising interest rates and a slowing economy, which have dampened investor confidence in many start-up stocks.
Joby, on the other hand, has already made significant progress by delivering an aircraft to the Air Force and completing 84% of the tasks required for stage three certification with the FAA. This certification process involves a rigorous design assessment. Following stage three, Joby will move on to stage four, which focuses on performance, and stage five, which deals with administration.
Archer has also made impressive strides in its development timeline. The company plans to commence piloted flight testing of its Midnight eVTOL in mid-2024.
In early trading on Monday, shares of Archer and Joby saw a minor decrease of 0.2%, while Blade’s stock dropped by 0.6%. Meanwhile, the S&P 500 and Nasdaq Composite experienced declines of approximately 0.4% and 0.6% respectively.
Blade’s profitability and progress in the aviation industry make it a force to be reckoned with. As the company continues to innovate and overcome challenges, it is poised for further success.
