Aerospace giant Airbus plans to test a prototype for a self-piloted flying car as a way of avoiding gridlock on city roads by the end of the year.

Airbus last year formed a division called Urban Air Mobility that is exploring concepts such as a vehicle to transport individuals or a helicopter-style vehicle that can carry multiple riders. The aim would be for people to book the vehicle using an app, similar to car-sharing schemes. “One hundred years…