Flying Cars Can Work. Blade Air Mobility Stock Soars n Surprise Profit.

What’s more, free cash flow came in at $1.3 million. Analysts were projecting a loss of about $10 million.

Crossing the cash and earnings chasm is important for any young company. Shares were up 16% in premarket trading, at about $2.64.
S&P 500
and
Nasdaq Composite
both traded close to flat.

Blade Air shares have been badly beaten up. Coming into Wednesday, the stock has declined more than 50% over the past 12 months. Rising interest rates and a slowing economy have sapped investor enthusiasm for small stocks of companies that aren’t consistently profitable.

Blade Air has executed its business plan well, however. The company has beaten sales estimates for several consecutive quarters and 2023 sales are expected to come in at about $230 million, up from $146 million generated in 2022.

There is growth and Blade Air sits at the nexus of flying cars and ride-sharing networks.

The company doesn’t love the analogy, but new investors can think of it as the
Uber Technologies
(UBER) of the skies. The company operates a growing network of air taxis. Eventually, electric vertical take off and landing, or eVOTL, aircraft should open up many more routes. Those aircraft are quieter, cheaper, and easier to operate than traditional helicopters.

Blade Air doesn’t make an eVOTL. It will be happy buying them from
Joby Aviation
(JOBY),
Archer Aviation
(ACHR), or whatever company produces a low-cost, reliable, safe eVOTL first.

While eVOTL development continues, Blade Air will continue to grow its business, trying to repeat the success fo the third quarter with more income and free cash flow.

Write to Al Root at [email protected]