Archer Aviation eVTOL electric air taxi at the 55th International Paris Airshow at Le Bourget Airport near Paris, France, June 18, 2025.
The agreement aims to deploy Archer’s Midnight eVTOL aircraft across multiple sectors, beginning with government-related applications. Archer stated that the aircraft is designed for short flights lasting 10–20 minutes, providing an efficient and low-emission alternative to congested ground transportation. The company also confirmed that the Midnight model completed a series of performance tests last month, including two of its highest-altitude flights to date.
Shares of the Santa Clara, California-based company rose 6% in early U.S. trading following the announcement. The deal adds momentum to Archer’s efforts to bring its aircraft into commercial service, as eVTOL manufacturers compete to secure airline partnerships, achieve regulatory certification, and transition from prototypes to operational models.
The electric air taxi sector continues to draw attention from both startups and established aerospace firms seeking to develop short-distance air transport solutions, such as urban commutes and airport transfers. These vehicles are positioned as faster and more sustainable alternatives to traditional ground transportation, though the industry still faces challenges including certification, infrastructure development, and uncertain timelines for achieving profitability.
Archer is supported by major investors including Boeing (BA.N) and Stellantis (STLAM.MI). The company is currently producing six aircraft across two U.S. facilities and has existing partnerships with United Airlines (UAL.O) and the owner of India’s IndiGo (INGL.NS). These relationships are part of Archer’s strategy to establish global commercial routes for its electric aircraft.
Financially, the company has yet to achieve profitability. It expects an adjusted EBITDA loss between $110 million and $130 million for the third quarter, compared with a loss of $93 million during the same period last year. Despite these losses, Archer continues to expand its technological and intellectual property assets to strengthen its position in the emerging eVTOL market.
Last week, Archer announced that it had won a bid to acquire a portfolio of approximately 300 advanced air mobility patent assets from rival Lilium for 18 million euros ($21 million). The acquisition expands Archer’s total patent portfolio to more than 1,000 assets, reinforcing its innovation base and competitive advantage in eVTOL development.
The partnership with Korean Air is expected to accelerate the introduction of electric air taxis in South Korea, where urban density and advanced infrastructure create favorable conditions for early adoption. Archer’s collaboration with a major Asian carrier marks a milestone in its global expansion strategy and positions the company as one of the leading players in the transition toward sustainable urban aviation.
