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Joby and Virgin Atlantic Ink Deal on UK Electric Air Taxi Service

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Joby Aviation (JOBY - Free Report) is set to launch an electric air taxi service in the UK through a new partnership with Virgin Atlantic, a UK-based airline recognized for its innovation and exceptional customer service. Virgin Atlantic has a partnership with Delta Air Lines (DAL), with the latter having a 49% stake in the former.

This collaboration aims to offer zero-emission, short-range flights across the country, starting with connections from Virgin Atlantic’s hubs at Heathrow and Manchester airports. Virgin Atlantic will assist Joby by promoting the service to its customers, working with regulators and supporting the development of landing infrastructure at key airports.

The all-electric air taxi, capable of carrying a pilot and up to four passengers at speeds of up to 200 mph, will allow Virgin Atlantic customers to book flights through their app, website and other channels. The service promises faster and more convenient travel options, such as an eight-minute flight from Heathrow to Canary Wharf, which typically takes around 80 minutes by car.

With its six tilting propellers, Joby's air taxi is designed for quieter operations and rapid, back-to-back flights on routes of up to 100 miles. This partnership is an extension of Joby’s ongoing collaboration with Delta and aims to offer a network of landing locations for quicker travel across the UK. Prices for these flights are expected to be on par with current premium ground ridesharing services.

JOBY Stock Price Performance

Owing to such an innovative approach, JOBY shares have rallied 22.8% over the past year, surpassing the Transportation - Airlineindustry’s rise of 10.2% year over year.

Zacks Investment Research
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JOBY’s Zacks Rank

JOBY currently carries a Zacks Rank #3 (Hold).

Stocks to Consider

Investors interested in the Transportationsector may considerSkyWest (SKYW - Free Report) and Frontier Group (ULCC - Free Report) .

SkyWest currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

SKYW has an expected earnings growth rate of 16% for the current year. The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 16.7%. Shares of SKYW have risen 6% over the past six months.

Frontier Group sports a Zacks Rank of 1 at present. ULCC has an expected earnings growth rate of more than 300% for the current year.

The company has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once. The average surprise is 1.1%. Shares of ULCC have rallied 36.2% in the past six months.


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