Technology & Innovation
Joby Aviation Raises $1 Billion for FAA Certification and 2026 Launch
Joby Aviation initiates $1 billion offering of convertible notes and stock to fund FAA certification, manufacturing, and 2026 commercial launch including Dubai.
Joby Aviation Initiates $1 Billion Capital Raise to Secure Commercial Launch Runway
Joby Aviation (NYSE: JOBY), a leader in the development of electric vertical take-off and landing (eVTOL) aircraft, announced on January 28, 2026, that it has launched a concurrent offering of convertible senior notes and common stock. The company aims to raise approximately $1 billion in aggregate gross proceeds to fund its final push toward Federal Aviation Administration (FAA) certification and the launch of commercial passenger operations.
According to the company’s announcement, the capital raise is structured as two separate but concurrent public offerings: the issuance of Convertible Senior Notes due 2032 and a direct sale of Common Stock. The move comes as Joby prepares for a targeted commercial entry in 2026, including operations in Dubai and other key markets.
Following the announcement, market data indicates that shares of Joby Aviation fell approximately 8–11% in after-hours trading on January 28. This reaction reflects typical investor sentiment regarding share dilution, despite the strategic necessity of the capital injection.
Breakdown of the Financial Offerings
The proposed offering is complex, involving both debt and equity instruments designed to maximize capital while attempting to manage dilution for existing shareholders. The offerings are being managed by underwriters including Morgan Stanley and Allen & Company LLC.
Convertible Senior Notes and Common Stock
Joby is offering debt securities in the form of Convertible Senior Notes that mature in 2032. These notes offer investors the ability to convert their debt into stock at a later date, providing potential upside if the company’s value increases. Concurrently, the company is selling shares of common stock directly to the public.
The “Delta Offering” and Capped Calls
To facilitate the transaction, the deal includes specific financial mechanisms aimed at hedging risk. As detailed in the offering context, a “Delta Offering” allows the banking partners to borrow and sell Joby shares. This activity facilitates hedging for investors buying the convertible notes but creates immediate selling pressure on the stock.
Additionally, Joby intends to use a portion of the proceeds to fund “capped call transactions.” These serve as an insurance policy against dilution. If Joby’s stock price rises significantly in the future, these capped calls reduce the number of new shares the company must issue to note holders upon conversion, thereby protecting the ownership percentage of current shareholders.
Strategic Rationale and Use of Proceeds
In its official statement, Joby Aviation outlined specific uses for the $1 billion war chest. The primary focus is bridging the gap between the capital-intensive development phase and revenue-generating commercial operations.
“Joby intends to use the net proceeds from the offerings… to fund its certification and manufacturing efforts, prepare for commercial operations, and for general corporate purposes.”
, Joby Aviation Press Release
Key allocation areas include:
- FAA Certification: Completing the final stages of Type Certification (Stage 4 of 5).
- Manufacturing Expansion: Scaling production facilities in Ohio and California to meet fleet demands.
- Commercial Launch: Building infrastructure and training pilots for the planned 2026 launch, including the exclusive six-year operating agreement in Dubai.
AirPro News Analysis: The Cost of Certification
While a $1 billion raise is substantial, it aligns with the immense costs associated with aerospace development. As of the third quarter of 2025, Joby reported a net loss of approximately $401 million for the quarter alone. Although the company projected liquidity of roughly $1.4 billion by the end of 2025, bolstered by a previous raise in October, the burn rate required to achieve mass manufacturing and certification remains high.
We assess that this capital raise is a defensive measure to ensure the company does not face a liquidity crunch right as it enters its most critical operational phase. By securing funds now, Joby avoids the risk of needing to raise capital later under potentially less favorable market conditions.
Partnerships and Market Position
The capital raise is supported by a backdrop of strong strategic partnerships. Toyota Motor Corporation remains Joby’s largest external shareholder and a critical industrial partner. As of May 2025, Toyota had committed a total of $894 million to Joby, assisting directly with manufacturing processes and quality control.
Furthermore, Joby’s acquisition of Blade Air Mobility’s urban air mobility division in late 2025 has provided the company with immediate revenue streams and access to passenger terminals in key markets like New York and Europe. Despite these revenue sources, the company remains in a pre-profit growth phase, making external capital vital for survival.
Frequently Asked Questions
Why did Joby’s stock price drop after the announcement?
The stock dropped 8–11% in after-hours trading due to “dilution risk.” When a company issues new stock, the value of the company is spread across more shares, which can lower the price of individual existing shares. Additionally, the “Delta Offering” creates immediate selling pressure from hedging activities.
What is a Convertible Senior Note?
It is a type of debt security that pays interest (or has a zero coupon) and can be converted into a predetermined number of common stock shares or cash. It allows companies to borrow money at lower interest rates than traditional loans in exchange for giving lenders potential equity upside.
When will Joby Aviation begin commercial flights?
Joby is targeting 2026 for its initial commercial passenger operations, with Dubai expected to be one of the first launch markets.
Sources
Photo Credit: Joby Aviation
Sustainable Aviation
ZeroAvia Leads HyPRIME Liquid Hydrogen Refuelling Project
ZeroAvia leads Project HyPRIME, backed by over £2 million in UK funding to test mobile LH2 refuelling at commercial airports.
ZeroAvia is leading a newly formed consortium to develop and test a mobile liquid hydrogen (LH2) refuelling vehicle at commercial airports in the United Kingdom, backed by over £2 million in government funding.
The initiative, known as Project HyPRIME (Hydrogen Propulsion Refuelling Infrastructure Mobile Ecosystem), was officially announced by the UK Department for Transport (DfT) and Innovate UK on July 23, 2026. ZeroAvia formally highlighted its leadership of the project on August 4, 2026. The consortium aims to demonstrate that hydrogen-electric aircraft can be refuelled within standard commercial turnaround times.
Advancing liquid hydrogen infrastructure
The HyPRIME consortium includes ZeroAvia as the lead partner, alongside ULEMCO Ltd, GeoPura Ltd, Bristol Airport Ltd, and Birmingham Airport Ltd. The group is tasked with designing, building, and testing a mobile refuelling system capable of supporting commercial hydrogen-electric aircraft operations.
A key technical objective of the project is the capture and utilization of “boil-off” hydrogen. Rather than venting this gas, the system will redirect it to fuel hydrogen-powered Ground Support Equipment (GSE), such as aircraft tugs, and on-site power generation units. The findings from these tests will inform future regulatory, safety, and infrastructure investment decisions for scaling LH2 fuel across the UK aviation sector.
Airport integration and sustainability targets
Testing and demonstrations for the mobile refuelling vehicle will take place in live commercial airport environments at Birmingham Airport (BHX) and Bristol Airport (BRS). Integrating cryogenic fuels into active aprons requires coordination with regulators, including the UK Civil Aviation Authority (CAA), to establish safe handling procedures.
Tom Denton, Head of Sustainability at Birmingham Airport, stated that hydrogen electric aircraft are progressing quickly and airports need to understand how the fuel can be safely and efficiently integrated into daily operations.
“HyPRIME gives us the opportunity to test procedures and build the knowledge required to support future zero emission flights from Birmingham. Taking part in this project helps us maintain the momentum we’ve built over the past few years and moves us that bit little closer to achieving our mission of running a lower carbon airport,” Denton said in a press release.
Birmingham Airport recently reported an 11% reduction in location-based greenhouse gas emissions for 2025/26 and has set a target year of 2033 to achieve net zero carbon emissions from its direct operations. Bristol Airport is also expanding its hydrogen footprint, having been announced on July 23, 2026, as a partner in the CHOSAN (Cryogenic Hydrogen Optimised Systems for AviatioN) project, which aims to deliver the first flight of a liquid hydrogen-powered aircraft from a UK commercial airport.
Government funding and strategic partnerships
Project HyPRIME is funded under the UK Government’s Zero Emission Flight Demonstrator Programme. According to Bristol Airport, the total funding pool for the program is £8 million. Reporting by BusinessGreen indicates that over £2 million of that total was specifically awarded to the HyPRIME initiative.
The announcement follows a series of strategic agreements for ZeroAvia in July 2026. On July 8, 2026, the company announced a collaboration with Marshall Aerospace to explore hydrogen-electric capabilities for military and defense platforms. On July 17, 2026, ZeroAvia and Safran forged a partnership to develop high-temperature hydrogen fuel cells for aviation applications.
AirPro News analysis
We view Project HyPRIME as a necessary step in bridging the gap between hydrogen aircraft development and practical airport operations. While powertrain technology has advanced rapidly, the logistical challenge of handling cryogenic liquid hydrogen on a busy commercial apron remains a significant hurdle. By testing boil-off capture for GSE, the consortium is addressing both safety and economic efficiency. Proving that LH2 can be managed within standard turnaround times without disrupting existing airport operations will be essential for securing regulatory approval and driving future infrastructure investments.
Sources: ZeroAvia
Photo Credit: ZeroAvia
Sustainable Aviation
Lufthansa Group Earns EMAS Certification Across Three Airlines
Lufthansa Airlines revalidated under EMAS for 2025, while Lufthansa City Airlines and Lufthansa Aviation GmbH certified for the first time.
Lufthansa Airlines (LH) has secured revalidation under the European Union’s Eco-Management and Audit Scheme (EMAS) for the 2025 reporting year, while Lufthansa City Airlines and Lufthansa Aviation GmbH achieved the environmental certification for the first time.
In a press release issued on August 6, 2026, the Lufthansa Group announced the certifications, confirming the operators are implementing measurable environmental measures across flight operations and ground processes. The EMAS system is a voluntary European Union (EU) instrument that fully incorporates the requirements of the ISO 14001 international environmental management standard.
Operational efficiency and fuel savings
The validation process evaluated the airlines’ progress in reducing their environmental footprint. According to the company, the 2026 Environmental Statement emphasizes operational fuel efficiency. The report details how specific measures implemented from the flight planning stage through to landing result in measurable kerosene savings.
Broader climate technology initiatives
The EMAS validations follow several recent environmental technology initiatives across the Lufthansa Group. On July 30, 2026, the company announced it is testing a next-generation “AeroSHARK” surface film on a Lufthansa City Airlines Airbus aircraft. The film is designed to reduce aerodynamic drag and lower fuel consumption.
Earlier in the year, on May 20, 2026, the group expanded its climate protection portfolio to include Direct Air Carbon Capture and Storage (DACCS) technologies. This initiative involves partnerships with aerospace manufacturer Airbus and climate technology company Climeworks to filter carbon dioxide directly from ambient air.
AirPro News analysis
The addition of Lufthansa City Airlines to the EMAS registry indicates that the Lufthansa Group is prioritizing environmental compliance for its newer subsidiaries from their inception. Because EMAS requires public environmental reporting and continuous performance improvement beyond standard ISO 14001 compliance, maintaining this validation requires sustained capital investment in fuel-saving technologies like the AeroSHARK film and DACCS partnerships. We expect European operators to increasingly leverage voluntary frameworks like EMAS to demonstrate regulatory readiness ahead of stricter EU aviation emissions mandates.
Sources: Lufthansa Group
Photo Credit: Lufthansa Group
Technology & Innovation
Sarla Aviation Adopts Siemens Xcelerator for eVTOL Certification
Sarla Aviation integrates Siemens Xcelerator tools to support eVTOL certification and a 2028 commercial air taxi launch in Bengaluru.
Indian urban air mobility startup Sarla Aviation has adopted the Siemens Xcelerator software portfolio to accelerate the design and certification of its next-generation electric vertical take-off and landing (eVTOL) aircraft.
Announced in a press release on August 5, 2026, the partnership integrates Siemens Digital Industries Software into Sarla Aviation’s development pipeline. The integration aims to streamline the complex engineering and regulatory validation processes required for aerospace Certification, supporting the startup’s target of launching commercial air taxi operations in Bengaluru by 2028.
Digital integration for aerospace certification
Sarla Aviation will utilize multiple components of the Siemens Xcelerator portfolio, including Designcenter, Simcenter, Capital, Polarion, and Teamcenter. By implementing a comprehensive digital thread, the manufacturer intends to reduce physical design iterations through early-stage simulation and improve engineering collaboration across its teams.
A primary driver for the software adoption is the stringent regulatory environment for new aircraft. The Siemens toolset is specifically designed to support complex traceability, verification, and validation processes, including compliance with the DO-178C standard for airborne software certification.
“By adopting a comprehensive digital thread using the Siemens Xcelerator portfolio, companies like Sarla Aviation are able to help accelerate development, improve collaboration and support certification processes for next-generation aircraft,” said Mathew Thomas, Vice President and Managing Director for India at Siemens Digital Industries Software.
Advancing India’s urban air mobility ecosystem
The software partnership follows a series of technical and financial milestones for the Bengaluru-based startup. In July 2026, Sarla Aviation successfully completed flight tests of Sylla, its electric eVTOL technology demonstrator. The company reported that the testing validated integrated aircraft systems and controlled hover capabilities for what it describes as India’s largest and heaviest eVTOL demonstrator.
Financial backing for the development program expanded earlier in the year. In April 2026, IndiGo Ventures, the corporate venture arm of Indian airline IndiGo, made a strategic ₹100 million (approximately US$1.2 million) investment in Sarla Aviation. While IndiGo noted the investment does not signal a near-term entry into eVTOL operations, it positions the airline to explore India’s future air mobility ecosystem.
Sarla Aviation Co-Founder & CTO Rakesh Gaonkar stated that working with Siemens supports the company’s ability to innovate faster. He noted the ambition is to make electric air mobility accessible at scale while maintaining high standards of safety and performance.
AirPro News analysis
The transition from flying technology demonstrators to certifying a production aircraft is the most capital-intensive and high-risk phase for any eVTOL developer. By embedding enterprise-grade aerospace software early in its development cycle, Sarla Aviation is signaling a shift toward the rigorous documentation and traceability required by aviation regulators. Compliance with DO-178C is a notorious bottleneck for new aerospace entrants. We view the adoption of established certification management tools as a necessary step if the company intends to meet its ambitious 2028 commercial launch target in Bengaluru. The recent capital injection from IndiGo Ventures provides the financial runway to implement these foundational engineering systems.
Sources: Siemens
Photo Credit: Sarla Aviation
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