Market News

United Airlines (UAL) Bets Big on Flying Taxis with a Multi-Million Order

Story Highlights

United placed an order for 100 flying taxis with its investee company, Archer, reposing confidence in the new mode of transportation. However, regulatory approval is still pending.

Airlines major United Airlines, Inc. (NASDAQ: UAL) recently announced that it has paid a deposit of $10 million for an order of 100 electric flying taxis with Archer Aviation, Inc. (ACHR).

Shares of United were up 2.4% in the regular trading hours to close at $38.69.

The Strategic Impact of the Deal

With airline companies looking to reduce their carbon footprint, electric flying taxis can speedily take customers to the airports by avoiding traffic. In light of this, United and a regional airline invested in Archer, a company working to produce electric flying taxis, last year.

Under an agreement signed with Archer, United will buy up to 200 flying taxis from the company.

Meanwhile, United is initially planning to launch electric flying taxi services in one or two of the most congested cities where it operates. The rates will be similar to Uber’s Black service.

Website Traffic Trends are Impressive for United Airlines

United Airlines’ strength in website traffic denotes solid demand for the company’s services.

TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into United Airlines’ performance this quarter.

The United Airlines website recorded a 12.31% monthly rise in global visits in July, compared to the same period last year. Also, year-to-date, United Airlines website traffic increased by 22.79%, compared to the previous year.

Learn how Website Traffic can help you research your favorite stocks.

Is UAL a Good Stock to Buy?

Top investors are also bullish and are accumulating United stock.

TipRanks’ Stock Investors tool shows that top investors currently have a Very Positive stance on UAL. Further, 18.2% of the top portfolios tracked by TipRanks, increased their exposure to UAL stock over the past 30 days.

Overall, the consensus among analysts for United stock is a Moderate Buy based on four Buys, five Holds, and one Sell. The UAL average price target of $47.67 implies an upside potential of 23.2% from current levels. Shares have declined 19.8% over the past year.

Key Takeaways

United is confident about the prospects of electric flying taxis. They remain optimistic that this new mode of transport will eventually meet people’s requirements for mobility. Taking this into account, the agreement will assist the business in ensuring the timely availability of these flying taxis.

Yet, electric flying taxis have still not been approved by the regulators, although they have been examining the feasibility of the same.   

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