Virgin Australia: Long a Loser, Now a Winner
Skift Take
In this Australian version of David versus Goliath, Goliath always wins — at least until now. After years in the long shadow of Qantas, Virgin Australia appears to be closing the profitability gap. For the 2024 calendar year, it posted a superior operating margin of 10.8%, edging out Qantas at 10.6%. With Qatar Airways now holding a 25% stake and an IPO on the horizon, this week's feature story explores what lies ahead for Australia's resurgent challenger.
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Yahoo
24 minutes ago
- Yahoo
Can Archer Aviation Make You an eVTOL Millionaire?
Archer Aviation is aiming to debut its eVTOL product shortly -- after it gets FAA approval. While the company is raising a lot of money, it is also experiencing a large burn rate. Its questionable unit economics and premium valuation should keep investors away. 10 stocks we like better than Archer Aviation › Electric air taxis -- otherwise called electric vertical takeoff and landing (eVTOL) aircraft -- have entered the investor zeitgeist. Many companies are aiming to build this innovative transportation vehicle, and perhaps none more aggressively than Archer Aviation (NYSE: ACHR). The start-up has raised billions of dollars and is aiming to sell its vehicle for air taxi networks around the world. Investors have hyped up this pre-revenue stock, driving up the price by 226% in the last 12 months alone. Will Archer Aviation stock help make you a millionaire? The story is more complicated than you think. Here's why Archer Aviation is a high-risk stock that investors should be heedful of buying today. Archer Aviation is a manufacturer building an eVTOL called the Midnight. Powered by electric batteries, this aircraft will have a pilot and four passengers that can take off vertically like a helicopter, but with minimal noise disruptions. It will be able to travel through the air to point-to-point destinations, which will be operated by Archer Aviation and its partners such as United Airlines. It is also working with partners internationally to build air taxi networks, including Abu Dhabi Aviation. The promise of eVTOL air taxis is enabling passengers to avoid traffic on busy routes, such as going from Manhattan to the airport. Archer is betting there will be insatiable demand for this product, and likely at a premium price. Many cities around the globe are ensnared in persistent traffic jams. The Midnight aircraft promises to relieve the pressure. That is, if the aircraft is approved by the Federal Aviation Administration (FAA). The FAA is 15% through its final verifications on the Midnight, which has already gone through a successful test flight with one of its propellers not working. More testing is to be done, but Archer Aviation looks to be on the path to FAA certification at some point in the near future, albeit without an exact date. In the meantime, the company is not generating any revenue and burning cash. Management has raised a lot of money in the capital markets, most recently an $850 million stock offering at a $10 share price. The company now has $2 billion of liquidity, which will give it a few years of runway at its current annual burn rate of $450 million in free cash flow. The Midnight aircraft is reportedly being sold for around $5 million a unit, or will be used directly by Archer Aviation with one of its aviation partners. This is nowhere near the cost of a commercial airplane, but the Midnight Aircraft is a bit different. It still has a pilot, who will need training and a salary, but only four passengers. In order to make up for pilot, energy, and depreciation costs, these air taxi tickets will need to be fairly expensive. Let's assume that a typical Midnight air taxi gets used 10 times a day with a full passenger load. That is 40 tickets sold to customers for a short 10-minute trip. At $100 a pop, that turns into $4,000 in daily revenue. Multiplied by 365 days a year -- this is assuming full capacity year round -- and you get $1.46 million in annual revenue. It would take a taxi operator close to four years to break even on a $5 million purchase before considering operating costs like hiring a pilot. Call me skeptical that Archer Aviation can sell a $100 ticket on its air taxis. It may have to be closer to $250 a ticket, putting it close to the price of an airline ticket. How many people are willing to pay up to skip the traffic? Time will tell. To be clear, there is a lot of growth potential for Archer Aviation and other eVTOL stocks. Customers would line up out the door to turn an hour-long trip in traffic to a 10-minute ride above the city. That is, if the routes can be operated profitably while selling tickets at a reasonable price, which is still a major uncertainty with this business. The hype around eVTOL stocks has reached close to fever pitch. Even though it generates zero dollars in revenue, Archer Aviation now has a market capitalization of $6.5 billion -- and this is before considering the dilution coming from its most recent capital raise. The company is burning $450 million in free cash flow a year in order to scale up its manufacturing capabilities and has not sold a single product to a customer. Management can talk all it wants about bringing point-to-point air taxi networks to cities around the world, and even for the Los Angeles Olympics in 2028 (which it plans on doing). But with the unit economics discussed, Archer Aviation is trying to thread the needle in order to scale up its operations and generate a profit for all stakeholders. Even if it does end up selling a bunch of air taxis every year, a $5 million price point would only get you to $500 million in revenue at 100 annual units. Profit margins will likely be slim and not get the stock to a reasonable price-to-earnings ratio (P/E). At a large market cap for a pre-revenue stock, Archer Aviation does not look like a millionaire maker for your portfolio. On the contrary, it looks like a good way to lose a million dollars. Before you buy stock in Archer Aviation, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Archer Aviation wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor's total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Can Archer Aviation Make You an eVTOL Millionaire? was originally published by The Motley Fool
Associated Press
an hour ago
- Associated Press
Arkay Beverages Announces Strategic Alliance with Mexico's Largest Spirits Operator
MELBOURNE, Fla., June 23, 2025 /PRNewswire/ -- Arkay Beverages, the global pioneer in alcohol-free spirits, proudly announces that Licor Zone Mexico, the largest spirits producer and operator in Mexico, has signed a Memorandum of Understanding (MOU) to acquire a 10% equity stake in Arkay Beverages. This strategic partnership underscores Arkay's unwavering commitment to transparency, integrity, and sustainable growth—principles that several major global spirits conglomerates have failed to uphold. In response, Arkay has made the deliberate decision to distance itself from these entities and instead align with forward-thinking partners who share its values and long-term vision. With Arkay's primary production facility located in Mexico, this alliance with Licor Zone Mexico is a natural and strategic fit. It strengthens Arkay's operational foundation in the region while also providing the capital infusion needed to fuel global expansion. The terms of the agreement remain unchanged: 10% equity for $150 million, based on a $1.5 billion valuation. 'This is more than a financial transaction,' said Reynald Vito Grattagliano, founder of Arkay Beverages. 'It's a partnership built on mutual trust, strategic alignment, and a shared mission to redefine the future of zero-proof spirits. Why look halfway across the world for a Japanese partner, when the right one is already under our feet?' About Licor Zone Mexico Licor Zone is Mexico's largest spirits manufacturer, best known for its flagship brand Williamson 18, available in more than 18,267 liquor stores across the country. The company is a proud member of the Mexican Whisky Association and is based in Arandas, Jalisco—the heart of Mexico's tequila-producing region. [email protected] About Arkay Beverages Founded in 2011, Arkay Beverages is the world leader in alcohol-free spirits and zero-proof alternatives. With millions of bottles sold across five continents, Arkay continues to reshape the beverage industry by offering sophisticated, alcohol-free experiences for health-conscious and mindful consumers. Media Contact [email protected] View original content to download multimedia: SOURCE Arkay Beverages
Yahoo
3 hours ago
- Yahoo
ASX falls to three-week low on Iran fears
The Australian sharemarket slipped to a three-week low on Monday, despite Commonwealth Bank reaching a new record high, on the back of fears an Iranian response to the US bombing could see the price of crude oil skyrocket. On a volatile day of trading, the benchmark ASX200 fell 30.6 points or 0.36 per cent to 8,474.9 on Monday – its lowest point since June 3 – although it rallied from down nearly 1 per cent during the afternoon's trading. The broader All Ordinaries also slumped, down 35.50 points or 0.41 per cent to close the session at 8,688. The Aussie dollar also fell on the news out of Iran and is now buying US64.18c. On an overall volatile day, eight of the 11 sectors finished in the red, with financials and the energy sector leading the way. IG market analyst Tony Sycamore said the sell-off was in line with US futures on well-founded fears after the US conducted strikes with B-2 Stealth Bombers on three Iranian nuclear sites over the weekend. 'The US insists the strikes were aimed at halting Iran's nuclear ambitions, not regime change, but Trump's rhetoric suggests openness to further action, Mr Sycamore said. 'You would have been forgiven for thinking we would have a really volatile session on Monday. 'Whether it's just caution or because we have seen nothing from Iran just yet to shake things up further … we are in a hold until we know more.' One of the bright spots on the ASX was the financial sector, with Commonwealth Bank hitting a fresh record high of $184.41, before closing up 1 per cent to $184.35. Mr Sycamore said Commonwealth Bank remains a 'juggernaut that steamrollers people.' 'I don't know where it stops and when it stops but it's the best of the banks and that is the sector where people want to be,' he said. Overall, it was a mixed day for the major banks, with Westpac closing up 0.63 per cent to $33.42. National Australia Bank slipped on the bell, down 0.08 per cent to $38.88 and ANZ dropped 0.63 per cent to $28.21. Energy stocks, which initially bounced on the opening bell, trimmed their earlier gains in line with the oil price but still closed the day in the green. Takeover target Santos closed 1 per cent higher to $7.78 while Woodside Energy traded flat and Ampol gained 0.47 per cent to $5.86. Iron ore miners continued their weakness with market heavyweight BHP slumping 1.57 per cent to $35.64, Rio Tinto dropping 0.33 per cent to $101.83 and Fortescue Metals sliding 1.02 per cent to $14.54. In company news, shares in Australia's largest airline Qantas fell 1.85 per cent to $10.08 on the back of higher oil prices. Discounted retailer The Reject Shop announced shareholders had overwhelmingly voted in favour of a $259m takeover by Canadian discount retailer Dollarama at a meeting on Monday. Homewares and furniture retailer Adairs plunged 20.5 per cent to $2.05 after telling the market that full-year earnings would come in below last year's. Error in retrieving data Sign in to access your portfolio Error in retrieving data
