XTI Aerospace (NASDAQ: XTIA) stock surged during intraday trading Wednesday after the company secured a significant purchase order from Mesa Air Group (NASDAQ: MESA).
XTI Aerospace has announced Mesa Air Group as the purchaser under a previously disclosed conditional purchase order. The agreement, made with XTI Aircraft Company, a wholly-owned subsidiary of XTI Aerospace, entails the acquisition of up to 100 TriFan 600 aircraft. TriFan 600 aircraft, currently in development, is a fixed-wing, vertical lift crossover airplane (VLCA). If all conditions are met and the order is fully exercised, it could generate approximately $1 billion in revenue for XTI Aerospace.
Furthermore, XTI Aerospace disclosed that Mesa Air Group has also become an investor in the company. Mesa Air Group holds warrants and a minority stake in common stock shares of XTI Aerospace.
Scott Pomeroy, CEO of XTI Aerospace, expressed his enthusiasm regarding this development, stating,
“We are excited to have secured this conditional pre-order and position from Mesa Airlines and believe it serves as further validation of the substantial and untapped market for our aircraft. With a maximum speed of 345 mph and a range of 700 miles, we believe the TriFan 600 will be an ideal alternative to existing aircraft for regional passengers.”
XTI Aerospace (NASDAQ: XTIA) Stock Price Action
On Wednesday, XTIA stock jumped 4.35%, closing at $0.96, marking an 11.51% increase for the week. The trading volume was 60,412,396 shares, significantly higher than the average daily volume of 2.62 million.
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