Archer Aviation Inc. (ACHR) shares surged on Monday, October 20, 2025, after announcing a landmark partnership with Korean Air to commercialize electric vertical takeoff and landing (eVTOL) aircraft in South Korea. The agreement includes a potential order for up to 100 Midnight aircraft, positioning Korea as a leader in advanced air mobility.
Trading at $11.77 as of 11:25 AM EDT, the stock gained $0.53 (+4.67%) on market-moving news that underscores intensifying competition among eVTOL developers to secure airline partnerships and regulatory approvals. The deal represents a major validation for Archer’s technology and business model as it races toward commercial deployment.
Korean Air Collaboration Positions Archer as a Global eVTOL Leader
The exclusive partnership targets deployment of Archer’s Midnight eVTOL aircraft across multiple applications in Korea, beginning with government use cases. Korean Air will leverage its five decades of aerospace maintenance, repair, and operations expertise alongside Archer’s next-generation aviation technology. The collaboration aims to address national priorities identified by Korea’s Ministry of Land, Infrastructure, and Transport, which declared eVTOL and urban air mobility adoption a government priority in 2022.
Archer CEO Adam Goldstein emphasized that Korean Air’s aerospace expertise and strategic vision make them an ideal partner in one of the world’s largest aerospace markets. The Midnight aircraft, designed to carry four passengers on rapid back-to-back trips with minimal charging time, can transform 60-90 minute car commutes into 10-20 minute electric air taxi flights. Recent performance tests demonstrated impressive capabilities, with the aircraft completing approximately 55-mile flights in 31 minutes and reaching altitudes of 10,000 feet.
The announcement comes as Archer continues building momentum with support from major investors including Boeing and Stellantis. The company is currently producing six aircraft at two U.S. facilities and counts United Airlines and the owner of India’s IndiGo among its customers. Last week, Archer expanded its intellectual property portfolio by acquiring rival Lilium’s 300 advanced air mobility patents for €18 million, bringing its total patent assets to over 1,000.
Investor Optimism Persists Despite Ongoing Profitability Challenges
ACHR stock has demonstrated remarkable volatility and growth over the past year. As of October 20, 2025, shares traded at $11.77 with a market capitalization of $7.605 billion, showing exceptional returns of +269.59% over one year and +20.92% year-to-date, significantly outperforming the S&P 500’s 14.75% and 14.42% returns respectively. Over three years, the stock has surged +339.92% compared to the S&P 500’s +83.58%, though the five-year return of +16.16% lags the benchmark’s +95.45%.
Despite strong stock performance, Archer remains pre-revenue and unprofitable, with recent quarterly earnings showing losses of $153.4 million in Q2 FY25. The company expects an adjusted EBITDA loss of $110-130 million in Q3, wider than last year’s $93 million loss. Key financial metrics reflect the early-stage nature of the business: the company shows negative returns on assets (-29.23%) and equity (-60.83%), with diluted EPS of -$1.27. However, Archer maintains a strong balance sheet with $1.72 billion in total cash and minimal debt (4.85% debt-to-equity ratio).
Analyst sentiment remains cautiously optimistic, with price targets ranging from $4.50 to $18.00 and an average target of $12.44, slightly above the current price. The most recent rating from Needham on August 12, 2025, reiterated a “Buy” recommendation with a $13 price target. With earnings scheduled for November 6, 2025, investors will be watching closely to see how the Korean Air partnership and other recent developments translate into progress toward commercialization and eventual profitability.