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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.

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This article is based on an official press release from Joby Aviation.

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.

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Photo Credit: Joby Aviation

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Heart Aerospace ES-36 Unveiled With JSX Order for 100 Aircraft

Heart Aerospace unveiled the ES-36 hybrid-electric airliner with a deposit-backed JSX order for up to 100 aircraft and a 2031 service target.

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Swedish manufacturer Heart Aerospace unveiled the ES-36 hybrid-electric regional airliner on September 23, 2026, securing a deposit-backed orders from United States public charter carrier JSX for up to 100 Commercial-Aircraft. The commitment includes 50 firm orders and 50 purchase rights, providing a major financial endorsement for the newly redesigned twin-engine production model.

In a press release issued on September 23, 2026, Heart Aerospace detailed the transition from its previously announced ES-30 to the larger ES-36. The updated design offers a 20 percent increase in payload capacity and shifts to a simplified two-nacelle configuration, driven by data gathered from the mid-August 2026 first flight of the company’s X1 demonstrator aircraft.

Design Evolution and Performance Specifications

The ES-36 represents a significant structural and Propulsion pivot for Heart Aerospace. The aircraft features a 95-foot wingspan, which is approximately 11 feet shorter than the preceding ES-30 design. The propulsion system has been streamlined from four propellers to two, utilizing twin series-hybrid powertrains. Each Electric-Aviation motor generates 1.65 megawatts of power.

According to reporting by FLYING Magazine, the ES-36 marks a return to a series-hybrid configuration after the manufacturer temporarily explored an independent hybrid system starting in May 2024. The finalized architecture targets an all-electric range of 125 miles (200 kilometers) and a maximum hybrid range of 745 miles (1,200 kilometers), inclusive of standard reserves.

Heart Aerospace Chief Technology Officer Ben Stabler stated that the design changes stem directly from the X1 demonstrator testing program.

“The ES-36 design is a direct result of what Heart learned designing, building, testing and flying our X1 demonstrator aircraft. Those learnings have helped us make the production aircraft more capable in the air and more productive for operators.”

JSX Fleet Strategy and Route Network

The JSX order advances the carrier’s strategy to deploy zero-emission-capable aircraft on short regional segments. While the ES-36 is designed for 36 passengers, JSX operates under Federal Aviation Administration (FAA) Part 135 Regulations. This regulatory framework legally limits passenger capacity to 30 seats, dictating how the carrier will configure its incoming fleet.

Aviation Week reported that JSX intends to utilize the ES-36 for high-frequency, short-distance routes that are economically unviable for conventional turboprops or regional jets. JSX Chief Executive Officer Alex Wilcox highlighted historical routes along the California coast, such as flights between Santa Monica and Santa Barbara, as prime candidates for the hybrid-electric aircraft.

A key operational advantage for JSX is the reduced maintenance burden of electric propulsion. Wilcox noted to Aviation Week that electric motors lack the cycle sensitivity inherent to traditional turbofan and turboprop engines, allowing for point-to-point flying without prohibitive wear-and-tear costs. Heart Aerospace projects the ES-36 will deliver operating costs at least 40 percent lower than legacy regional aircraft.

Certification Timeline and Market Outlook

The JSX agreement builds upon an initial letter of intent signed in 2023 for the earlier ES-30 model. Heart Aerospace Founder and Chief Executive Officer Anders Forslund credited the charter carrier for championing electric aviation early in the development cycle.

Heart Aerospace is targeting the second half of 2028 for the first flight of the ES-36. The manufacturer anticipates achieving FAA Part 25 certification and subsequent entry into service by 2031.

AirPro News analysis

The transition from the ES-30 to the ES-36 demonstrates a maturation in Heart Aerospace’s design philosophy, prioritizing aerodynamic efficiency and payload over the complexity of a four-engine distributed propulsion system. By securing a firm, deposit-backed commitment from an established operator like JSX, we view Heart Aerospace as having successfully validated its redesign in the commercial market. The 1,415-pound payload increase directly addresses a common vulnerability in early electric aircraft designs, where heavy battery systems often severely restrict practical passenger and cargo capacity. If the 2031 entry-into-service target holds, the ES-36 could become a foundational asset for operators looking to revive dormant short-haul regional networks.

Sources: Heart Aerospace

Photo Credit: Heart Aerospace

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Electra.aero EL2 Completes Heliport Flights at Virginia Airports

Electra.aero flew its EL2 demonstrator from commercial heliports in Virginia under the FAA’s AAM Integration Pilot Program.

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On September 22, 2026, Electra.aero, Inc. announced the successful completion of test flights operating its hybrid-electric EL2 Ultra Short technology demonstrator from a commercial airport heliport in Virginia. The flights demonstrated the ability of fixed-wing aircraft to utilize vertical flight infrastructure and helicopter-specific instrument procedures, establishing a framework for expanding airport capacity without increasing runway congestion.

In a press release issued on September 22, 2026, the company detailed operations conducted in coordination with the Federal Aviation Administration (FAA) electric Vertical Takeoff and Landing (eVTOL) and Advanced Air Mobility (AAM) Integration Pilot Program. The testing validates the operational model for Electra’s upcoming nine-passenger EL9 aircraft.

Validating Ultra Short operations at commercial Airports

The flight test campaign focused on executing point-in-space procedures and dedicated instrument routings. Electra’s EL2 demonstrator successfully took off and landed on small heliports, vertiports, and taxiways that have historically been restricted to rotorcraft. Operations were conducted at Roanoke–Blacksburg Regional Airport (KROA), Virginia Tech/Montgomery Regional Airport (KBCB), and Allan C Perkinson/Blackstone AAF Airport (KBKT), alongside additional sites in Newport News and Richmond.

Electra Chief Executive Officer Marc Allen stated the Virginia flights provide a preview of future airspace integration.

“We showed that fixed-wing, Ultra Short aircraft can use vertical flight landing areas and a new generation of instrument procedures to reach places conventional airplanes were never designed to access. This will both bring air service closer to the passenger and also expand capacity at commercial airports in completely non-congestive ways,” Allen said.

Regulatory coordination and future integration

The testing represents the culmination of a year-long effort between Electra, the FAA, the Virginia Smart Airspace Program, the Virginia Department of Aviation, and the Pennsylvania Department of Transportation (PennDOT) to develop flexible approach procedures for Ultra Short aircraft. By utilizing airspace and airport surfaces currently underutilized by conventional fixed-wing traffic, the operations aim to establish guidelines for integrating new aircraft classes into the National Airspace System.

Dr. Parker Vascik, Director of Product Strategy at Electra, described the flights as a foundational step for AAM operations.

“All in all, we demonstrated the core enabling principle of Ultra Short aircraft feeding into major airports in a manner that complements rather than burdens the air traffic system,” Vascik said.

Tombo Jones, Director of the Virginia Tech Mid-Atlantic Aviation Partnership, emphasized the necessity of practical flight testing to generate the operational data required to integrate new aircraft types safely and efficiently into the airspace system.

The EL9 production aircraft

The operational data gathered from the EL2 demonstrator flights will directly support the development and certification of Electra’s flagship EL9 Ultra Short aircraft. According to the company, the EL9 is designed to offer a 2.5x payload multiplier and a 10x range multiplier compared to standard helicopters and eVTOLs.

Operating costs for the EL9 are projected to be 70 percent lower than comparable rotorcraft. Electra reports holding more than 2,200 letters of intent from over 60 commercial customers for the production aircraft.

AirPro News analysis

The successful demonstration of fixed-wing operations on helicopter infrastructure addresses a primary bottleneck in the Advanced Air Mobility sector: ground infrastructure. By proving that the EL2 can utilize existing heliports and point-in-space instrument procedures, Electra bypasses the need for bespoke vertiport construction that many eVTOL manufacturers require. We view this as a significant regulatory and operational de-risking milestone for the EL9 program. If the FAA formally adopts these flexible approach procedures, Electra’s operators will gain immediate access to a vast network of underutilized urban and airport-adjacent landing sites.

Sources: Electra.aero, Inc.

Photo Credit: Electra aero

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Technology & Innovation

Rolls-Royce to Lead ELEVATED Hybrid-Electric EU Project

Rolls-Royce leads the ELEVATED consortium under EU Clean Aviation, targeting 20% CO2 cuts with 2028 ground testing.

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Rolls-Royce will lead a European consortium to develop and test a hybrid-electric gas-turbine propulsion system, targeting a minimum 20 percent reduction in aircraft-level carbon dioxide emissions for future short- to medium-range aircraft.

In a press release issued on September 18, 2026, the manufacturers announced its selection to head the ELEVATED project under the European Union’s Clean Aviation Joint Undertaking (CAJU). The initiative will embed a hybrid-electric subsystem into a donor engine for realistic ground testing, which is scheduled for 2028 using the Rolls-Royce UltraFan 30 narrowbody technology demonstrator.

Clean Aviation funding and consortium details

The ELEVATED project is one of 19 initiatives selected during the CAJU Call 4 funding round. The European Union allocated up to €290 million across these projects, generating a total public and private investments of €664 million. The broader Clean Aviation programme operates with a €4.1 billion budget, comprising €1.7 billion in EU funding and €2.4 billion from private sources.

Rolls-Royce Deutschland Ltd & Co KG will lead the ELEVATED consortium. The group includes academic, research, and industry partners distributed across France, Germany, the Netherlands, Norway, Spain, and the United Kingdom.

The overarching goal of the Clean Aviation programme for short- to medium-range and regional aircraft is a 30 percent reduction in emission footprint compared to 2020 state-of-the-art aircraft. The ELEVATED project specifically aims to advance hybrid-electric technology toward Technology Readiness Level 6 (TRL6).

Integration with the UltraFan 30 demonstrator

The project will utilize the UltraFan 30, a technology demonstrator designed by Rolls-Royce for narrowbody applications and engineered for compatibility with 100 percent sustainable aviation fuel (SAF). By integrating hybrid-electric elements into this architecture, the consortium intends to evaluate the performance impacts on thrust, fuel burn, noise, and durability.

Alan Newby, Director – Research & Technology at Rolls-Royce, stated that the project will generate data to validate modeling and inform future technology selection, product development, and certification planning.

“Together with the turbomachinery work being advanced through the ongoing UNIFIED project, it will help bring together the key technology paths needed to validate future UltraFan capability and support best-in-class performance in thrust, fuel burn, noise, emissions and durability,” Newby said in the company statement.

Additional hydrogen research initiatives

Alongside the ELEVATED project, Rolls-Royce confirmed its participation in two other newly announced Clean Aviation projects. The FARMAN project will focus on the development of hydrogen distribution systems for commercial aviation applications.

The company will also participate in the H-ELENA project, which is dedicated to advancing hydrogen engines for low-emission nitrogen oxide (NOx) architectures. Both projects align with the manufacturer’s broader research into alternative propulsion and fuel systems.

AirPro News analysis

The selection of Rolls-Royce to lead the ELEVATED project underscores the European aerospace sector’s reliance on established engine manufacturers to drive the transition toward hybrid-electric architectures. By anchoring the hybrid-electric subsystem testing to the UltraFan 30 demonstrator, we see a clear strategy to mature multiple technologies simultaneously. The 2028 ground testing target is ambitious but necessary if these propulsion systems are to reach TRL6 in time to influence the next generation of narrowbody aircraft designs expected in the 2030s.

Sources: Rolls-Royce

Photo Credit: Rolls-Royce

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