United Airlines Ventures (UAV), the venture capital arm of United Airlines Holdings Inc. (NASDAQ:UAL), has invested in aerospace startup Astro Mechanica to support development of its adaptive propulsion engine for supersonic aircraft. The technology is designed to improve fuel efficiency, one of the largest cost challenges for high-speed flight.
The investment will enable Astro Mechanica to move forward with its Duality engine, which utilizes a hybrid electric system to optimize performance across various speeds.
Mukul Hariharan, managing partner at UAV, said the startup is "developing an adaptive engine concept for strategic military and commercial applications" and praised its leadership team. UAV, established in 2021, invests in early-stage companies that are shaping the future of aviation and travel.
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Ian Brooke, founder and CEO of Astro Mechanica, said the investment reflects "strong conviction in Astro Mechanica from an experienced and credible industry leader." He added that the company looks forward to collaborating with UAV as it advances toward flight testing.
The Duality engine is designed to function as a turbofan at low speeds, a turbojet near supersonic, and a ramjet at higher supersonic levels. The adaptability could enable long-haul operations such as transpacific passenger travel, cargo transport, and defense missions.
United is not the only airline venture charting new skies. Delta Air Lines (NYSE:DAL) launched an initial $60 million stake in Joby Aviation (NYSE:JOBY) on Oct. 11, 2022, with the option to expand up to $200 million pending development milestones, signaling its interest in eVTOL-powered city-to-airport travel.
More recently, Toyota (NYSE:TM) injected $250 million (the first tranche of a planned $500 million commitment) on May 28, 2025, to help Joby achieve FAA certification and ramp up commercial production.
Investors seeking exposure to the sector may consider iShares U.S. Aerospace & Defense ETF (BATS:ITA) and SPDR S&P Kensho Future Security ETF (NYSE:FITE).
Price Action: As of the last check on Wednesday, UAL shares were trading 2.31% lower at $99.83.
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