ENGLEWOOD, Colo. - XTI Aerospace, Inc. (NASDAQ:XTIA) disclosed today that Mesa Air Group, Inc. (NASDAQ:MESA) is the confirmed buyer in a conditional purchase agreement for up to 100 TriFan 600 vertical lift crossover airplanes (VLCA), with potential revenue reaching approximately $1 billion if all conditions are met and the order is fully executed. Mesa, the parent company of Mesa Airlines, also holds an investment position in XTI Aerospace, including warrants and a minority shareholding.
Jonathan Ornstein, Chairman and CEO of Mesa Air Group, expressed enthusiasm for the TriFan 600's innovative design, which merges vertical takeoff and landing (VTOL) capabilities with the speed and range of a business aircraft. Ornstein highlighted the aircraft's use of certified turboshaft engines capable of operating on 100% sustainable aviation fuel, with plans to transition to hybrid-electric propulsion as the technology matures.
Scott Pomeroy, Chairman and CEO of XTI Aerospace, stated the pre-order from Mesa Airlines validates the market demand for the TriFan 600. The aircraft boasts a maximum speed of 345 mph and a range of 700 miles, offering a new alternative for regional travel.
Ornstein also compared the TriFan 600 to the "legendary King Air," noting its potential to transform the industry due to its ability to access various landing areas, including helipads and non-traditional sites, in addition to conventional airports.
Mesa Air Group, headquartered in Phoenix, Arizona, operates as United Express under a capacity purchase agreement with United Airlines, Inc., providing scheduled passenger service to numerous destinations across the United States and abroad.
XTI Aerospace, based near Denver, Colorado, is developing the TriFan 600 and also operates Inpixon (NASDAQ:XTIA), a business unit specializing in real-time location system (RTLS) technology.
The company's press release contains forward-looking statements regarding the development and market potential of its products, including the TriFan 600. These statements are subject to risks and uncertainties, and actual results may differ materially.
This article is based on a press release statement from XTI Aerospace, Inc.
In other recent news, XTI Aerospace has announced a partnership with AVX Aircraft Company to expedite the development and certification of the TriFan 600, a vertical takeoff and landing aircraft. This collaboration aims to leverage AVX's expertise in advanced vertical lift technology, which is expected to shorten the project timeline and reduce associated costs. XTI Aerospace will maintain management and oversight of the TriFan 600 program, with AVX handling the detailed design, program management, and certification support services.
Simultaneously, XTI Aerospace is advancing a spin-off of its former subsidiary Grafiti Holding Inc., set to merge with Damon Motors, Inc. The distribution of Grafiti shares is contingent on the registration statement becoming effective, with 80% of the distributed shares subject to lock-up restrictions.
In addition, XTI Aerospace has welcomed Tensie Axton, a finance expert, to its Board of Directors. Her addition is expected to bring valuable expertise to the company, particularly in capital markets, mergers and acquisitions, investor relations, and strategic planning.
Following its merger with Inpixon, XTI Aerospace is set to debut on the Nasdaq Capital Market under the ticker symbol "XTIA". This strategic initiative aims to enhance the company's position in the aerospace sector, particularly with the development of the TriFan 600. The TriFan 600 has already secured over 700 conditional pre-order reservations, indicating a potential for significant revenue upon delivery. These are the recent developments for XTI Aerospace.
InvestingPro Insights
XTI Aerospace, Inc. (NASDAQ:XTIA) has recently made headlines with its conditional purchase agreement with Mesa Air Group, Inc., signaling a strong market interest in its TriFan 600 aircraft. While the potential deal could be a significant revenue driver for XTI, the financial health and market performance of the company provide additional context for investors.
InvestingPro data shows a market capitalization of $10.99 million for XTI Aerospace, which may seem modest when considering the scale of the announced deal. Furthermore, the company's price to earnings (P/E) ratio stands at -2.04, indicating that it is not currently profitable. The adjusted P/E ratio for the last twelve months as of Q3 2023 is even lower at -1.02, reinforcing the company's challenges in generating profits.
The price performance of XTI Aerospace has been turbulent, reflected by a significant price drop over the last year. The 1 Month Price Total Return as of Y2024.D157 is a stark -55.12%, and the 6 Month Price Total Return mirrors this decline at -73.71%. This volatility is a crucial consideration for investors, especially when coupled with an InvestingPro Tip highlighting the stock's high price volatility.
Additionally, two InvestingPro Tips provide insights into the company's financial health: XTI Aerospace operates with a significant debt burden and is quickly burning through cash, which could impact its ability to sustain operations and fulfill large-scale orders such as that with Mesa Air Group.
For investors interested in a deeper analysis of XTI Aerospace, there are additional InvestingPro Tips available, offering a comprehensive view of the company's financial metrics and market performance. To access these insights and make informed investment decisions, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/XTIA.
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