Archer Aviation Nears Launch of Electric Air Taxi Service

San Jose, California – Archer Aviation is on track to launch its first commercial electric air taxi service, signaling a major advancement in urban air mobility. The company has expanded partnerships, achieved new test milestones, and reported over $1 billion in cash reserves as it prepares for passenger flights expected to begin in 2025.

Recently, Archer’s Midnight aircraft successfully tested its capabilities under challenging desert conditions—heat, humidity, and dust. This significant milestone was observed by officials and regulators from the United Arab Emirates, underscoring the importance of this achievement.

This desert test is part of Archer’s Launch Edition program with Abu Dhabi Aviation, which plans to integrate a fleet of Midnight aircraft into air taxi services in Abu Dhabi later this year. In support of this initiative, Archer has partnered with a global aviation services provider to retrofit 40 terminals across over 30 countries. Their initial focus is on the UAE, where Jetex will facilitate infrastructure and passenger logistics.

In the U.S., Archer is collaborating with major customers such as United Airlines, which has placed a $1 billion order for the air taxis. The company is also working alongside the Department of Defense and defense-tech firm Anduril, creating funding opportunities and expanding its market reach.

Financially, Archer reported a GAAP net loss of $93.4 million for the first quarter of 2025, an improvement from $116.5 million the previous year. The company concluded the quarter with cash reserves of $1.03 billion and has raised an additional $300 million via direct equity.

Production goals are ambitious, with plans to reach two Midnight aircraft produced per month by the year’s end at its Georgia facility. Despite this progress, Archer still requires the Federal Aviation Administration (FAA) Type Certification to commence commercial operations. This certification is contingent upon successful flight and system testing under the FAA’s Type Inspection Authorization (TIA) process, expected to take 9 to 12 months.

Archer has already achieved significant regulatory approvals, including Part 135 certification for operating as an air carrier and Part 141 approval for pilot training. These advances place the company ahead in preparing for operational launches.

While Archer has yet to commence passenger flights, much of the groundwork is laid. With production lines active, operational approvals obtained, and pilot programs in development, the final hurdle remains FAA Type Certification. Analysts continue to view Archer positively, with a Moderate Buy consensus rating and potential for a modest upside.