United Airlines Holdings Inc (UAL) on Thursday announced plans to invest $15 million in air taxi maker Eve Air Mobility.
The US air carrier said it had ordered 200 air taxis from the Embraer-owned startup.
The conditional order for Eve Air’s four-seater air taxi, also known as electric vertical take-off and landing vehicle, includes an option for 200 additional aircraft, United said.
Eve Air Mobility’s aircraft have a range of 60 miles, while United expects to take delivery of the first air taxi as early as 2026.
United said it was investing in Eve Air partly because of the company’s relationship with plane maker Embraer, which would ensure access to parts and services.
The deal with Eve Air Mobility is United Airlines’ second bet on air taxis, after the air carrier has already invested in Archer Aviation Inc.
United Air shares closed higher for a fifth consecutive trading session on NASDAQ on Thursday. The stock went up 0.73% ($0.28) to $38.88, after touching an intraday high at $39.52. The latter has been a price level not seen since August 17th ($39.69).
The shares of United Airlines Holdings Inc have retreated 11.19% so far in 2022 compared with a 15.95% loss for the benchmark index, S&P 500 (SPX).
In 2021, United Air’s stock went up 1.23%, thus, it underperformed the S&P 500, which registered a 26.89% gain.
Analyst stock price forecast and recommendation
According to TipRanks, at least 5 out of 11 surveyed investment analysts had rated United Airlines Holdings Inc’s stock as “Buy”, while other 5 – as “Hold”. The median price target on the stock stands at $47.60.
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