US Air Force to Buy Up to Six Archer Electric Flying Taxis

Archer Aviation Inc. agreed to build as many as six of its Midnight electric air-taxis for the US Air Force as part of a deal worth up to $142 million. The shares jumped the most intraday in a month.

(Bloomberg) — Archer Aviation Inc. agreed to build as many as six of its Midnight electric air-taxis for the US Air Force as part of a deal worth up to $142 million. The shares jumped the most intraday in a month.

The deal marks an expansion of a 2021 partnership through the Air Force Agility Prime program, Archer said Monday in a statement. The electric vertical take-off and landing aircraft will potentially provide an alternative to helicopters for personnel transport and rescue operations.

The US military has used Agility Prime contracts to back an array of eVTOL makers, including Archer and Joby Aviation Inc. — providing crucial support as the manufacturers work to raise funds, line up commercial customers and bring their new designs to market. Joby expects to deliver its first aircraft to the Air Force in 2024.

Shares of California-based Archer advanced 17% at 9:35 a.m. in New York, after jumping as much as 21%. The stock has almost tripled this year.

(Updates with US trading in final paragraph)

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