Fans of aviation infrastructure company Sky Harbour (NYSEMKT:SKYH) are likely cheering today. SKYH stock closed up 50%, nearly a month after going public. It’s unclear why the company is flying into the clouds, but investors are probably too busy celebrating to care.
So what is the story with this under-the-radar company?
After going public via a special purpose acquisition company in January, it seems SKYH is finally seeing some gains. This isn’t entirely surprising, as Sky Harbour has achieved 100% revenue growth over the last 12 months, and promises to seriously innovate in aviation.
How so? CEO Tal Keinan views the company as a “pure play real estate developer.” Essentially, Sky Harbour says that it will help rapidly expand private flight hangars.
5 Things to Know as SKYH Stock Reaches New Highs
- Sky Harbour came public via a SPAC merger with Yellowstone Acquisition. The deal valued Sky at $777 million.
- Much of Sky’s business is centered around growing demand for hangar space at airports. From 2010 to 2020, the total footprint of the U.S. business aviation fleet grew by 27 million square feet.
- Sky brands itself as a tech-forward aviation company. In an interview with Cheddar News, Keinan estimated the first electric planes will receive Federal Aviation Administration (FAA) certification around 2024 or 2025.
- Demand for private aviation has surged since the onset of the pandemic. Globally, demand is up 21% for private jets, as some countries see increases closer to 60%.
- After opening at around $10 per share, SKYH stock has generally trended down. Prior to today’s jump, the company was traded at around $6 per share.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
