Archer Aviation Buys L.A. Airport for $126M

A boutique “air taxi” company has purchased an airport in Los Angeles County ahead of the 2028 Summer Olympics. 

Archer Aviation, which develops electric vertical takeoff and landing (eVTOL) aircraft for urban transit, paid $126 million for Hawthorne Municipal Airport in Hawthorne in L.A.’s South Bay, according to the firm’s latest earnings report. The airport, about six miles east of LAX, spans about 80 acres and features 190,000 square feet of terminal, office and hangar space.

To help pay for the acquisition, Archer announced a $650 million stock offering for 81.25 million shares, bringing its total liquidity to $2 billion. Although its earnings before interest, taxes, depreciation and amortization (EBITDA) losses were less than Wall Street analysts expected, the firm’s stock price sank over 13 percent more than halfway through trading on Friday, and it’s down more than 35 percent the past month.

Built in the 1920s at 12101 Crenshaw Boulevard and formerly owned by the City of Hawthorne, the airport will serve as Archer’s operational hub for its planned L.A. air taxi network operations. Archer is the exclusive air taxi partner of both Los Angeles Sports & Entertainment Commission and the 2028 Olympics. Archer also plans to use the airport as an “innovation testbed” for aviation technology powered by artificial intelligence. 

Representatives for Archer and for the City of Hawthorne did not immediately respond to requests for comment. 

“Archer’s trajectory validates our conviction that eVTOLs are part of the next generation of air traffic technology that will fundamentally reshape aviation,” Michael Leskinen, United Airlines’ chief financial officer, said in a statement. “Their vision for an AI-enabled operations platform isn’t just about eVTOLs, it’s also about leveraging cutting-edge technology to better enable moving people safely and efficiently in our most congested airspaces.” 

Nick Trombola can be reached at ntrombola@commercialobserver.com.