Freedom Broker: Virgin Atlantic deal supports Joby Aviation shares

Joby Aviation shares rose after the announcement of a strategic partnership with UK airline Virgin Atlantic, under which the companies plan to develop an air taxi service in the UK. Freedom Broker analyst Natalia Milchakova believes the agreement could accelerate the project’s commercial launch and strengthen Joby Aviation’s position in the race for leadership in the global air taxi market. 

Why Joby Aviation shares rose

Shares of U.S. company Joby Aviation, which develops electric aircraft for short-distance commercial transportation, rose 4% after announcing a partnership with Virgin Atlantic. 

Virgin Atlantic is a UK airline that ranks among the country’s largest long-haul carriers. The companies plan to jointly develop an air taxi service in the UK, with London and Manchester potentially becoming the first cities for the launch.

The Joby Aviation–Virgin Atlantic deal: what will change

According to Freedom Broker lead analyst Natalia Milchakova, the agreement with Virgin Atlantic will enable Joby Aviation to implement its projects to launch air taxi services in the UK more quickly.

The expert notes that the company initially planned to begin commercial operation of air taxis in Dubai in 2026, but the conflict in the Middle East prevented those plans from being carried out. The partnership with Virgin Atlantic gives Joby Aviation the opportunity to focus on developing the service in the UK.

Natalia Milchakova believes that if the project is implemented successfully, Joby Aviation and Virgin Atlantic will be able to take leading positions among global providers of commercial air taxi services. 

For now, Chinese companies remain the leaders in this market. China was the first in the world to begin commercial operation of electric vertical takeoff and landing air taxis, and potential demand for such vehicles in the country is estimated at more than 110 thousand units with technology penetration of just 2%, and more than 165 thousand units with penetration at 3%.

What was previously happening in the market

Earlier, Freedom Broker reported that the U.S. corporate earnings season is mixed. Intel exceeded market expectations on revenue thanks to rising demand for artificial intelligence solutions, while Verizon delivered stronger-than-forecast financial results and increased its subscriber base. 

At the same time, AMD announced the start of mass production of a new AI server, confirming high investment activity in the artificial intelligence technology segment.

However, not all corporate news was received by the market in the same way. Freedom Broker analysts called Merck shares overvalued, pointing to limited potential for further gains in the stock price. Against this backdrop, investors are increasingly evaluating companies not only based on quarterly reports, but also on the presence of long-term growth drivers.