Technology & Innovation
Vertical Aerospace Advances Valo eVTOL Amid Financial Challenges
Vertical Aerospace progresses Valo eVTOL testing and manufacturing while facing liquidity concerns and issuing a going concern warning.

This article is based on an official press release from Vertical Aerospace.
On March 24, 2026, UK-based Electric-Aviation developer Vertical Aerospace (NYSE: EVTL) issued a comprehensive business update alongside its FY2025 financial results. The disclosures reveal a company at a critical juncture, balancing significant technological advancements with severe liquidity challenges.
According to the company’s press release and annual report, Vertical Aerospace has successfully advanced its flagship eVTOL (electric vertical takeoff and landing) aircraft, the Valo, through complex flight testing phases. Furthermore, the manufacturer has reopened its order book and expanded its manufacturing footprint.
However, these operational victories are overshadowed by a rapidly depleting cash reserve. In its official SEC filings, the pre-revenue aerospace company issued a formal “going concern” warning, highlighting the immense capital requirements necessary to achieve aviation certification and reach commercialization.
Technological and Manufacturing Milestones
Advancing the Valo Flight Test Campaign
Vertical Aerospace reported critical progress in its piloted flight testing program throughout late 2025 and early 2026. The Valo, a four-to-six-passenger eVTOL designed for urban air mobility, cargo, and emergency medical services, boasts a targeted maximum speed of 150 mph and an electric range of 100 miles.
According to the company’s update, the aircraft has successfully completed hover, vertical flight, and wingborne flight phases. In November 2025, operating under the oversight of the UK Civil Aviation Authority (CAA), Vertical initiated “transition testing,” which involves the complex aerodynamic shift between vertical lift and forward wingborne flight. The company recently achieved a major milestone by completing a wingborne tilt profile that included controlled rear propeller deployment.
Scaling Industrial Production
To support future commercialization, Vertical Aerospace is aggressively expanding its manufacturing capabilities. The press release details the launch of an automated, aerospace-grade battery pilot production line at the Vertical Energy Centre (VEC).
“Bringing our automated battery production line online is a defining step in our journey toward certification and commercialisation. We are not only developing a world-class aircraft, we are building the industrial capability required to produce it.”, Stuart Simpson, CEO of Vertical Aerospace
The company plans to open a new 30,000-square-foot facility, dubbed “VEC2,” later in 2026, which is projected to triple its battery production capacity. Additionally, Vertical has signed a Letter of Intent (LOI) to expand its assembly footprint at Cotswold Airport to approximately 130,000 square feet, targeting an annual production capacity of more than 25 Valo aircraft.
Commercial Strategy and Order Book Expansion
Global Pre-Orders and Cabin Configurations
On the commercial front, Vertical Aerospace announced the official reopening of its order book. The company secured new conditional pre-orders from JetSetGo in India and Heli Air Monaco on the Côte d’Azur. According to the press release, these new agreements bring Vertical’s total conditional pre-orders to approximately 1,500 aircraft distributed across four continents.
The company also highlighted the economic versatility of the Valo. While the standard business-class layout accommodates four passengers, Vertical noted that configuring the cabin for six passengers could deliver 50% higher revenue and double the profitability for fleet operators.
The Battery-as-a-Service (BaaS) Model
A key component of Vertical’s long-term financial strategy is its newly unveiled Battery-as-a-Service (BaaS) recurring revenue model. Because eVTOL batteries degrade over time, the company anticipates supplying roughly 20 replacement battery packs per aircraft over its operational lifespan. By 2035, Vertical targets the production of approximately 45,000 battery sub-packs annually, projecting high gross margins of around 40% for this segment.
Financial Headwinds and “Going Concern” Warning
Cash Burn and Liquidity Crisis
Despite strong operational momentum, Vertical Aerospace’s FY2025 Annual Report lays bare the harsh financial realities of the eVTOL sector. The company reported using $112 million (£83 million) in net cash for operations during FY2025.
Looking ahead, the financial strain is expected to intensify. Over the next 12 months, Vertical projects cash outflows will accelerate to $195 million (£145 million) to fund ongoing flight testing, regulatory certification, and manufacturing scale-up. Meanwhile, the company’s cash reserves are dwindling rapidly. While Vertical ended 2025 with $93 million (£69 million) in cash and cash equivalents, that figure plummeted to just $58 million (£43 million) by March 24, 2026, representing a cash burn of $35 million in less than three months.
This severe liquidity crunch prompted a stark warning in the company’s SEC filing:
“Our limited cash and cash equivalents, recurring losses from operations, and dependency on raising additional capital indicate that a material uncertainty exists that may cast significant doubt regarding our ability to continue as a going concern.”, Vertical Aerospace FY2025 SEC Filing
To bridge the immediate financial gap, the company stated it is relying on anticipated near-term receipts, including $23 million in UK R&D tax reliefs and $5 million in government grants and VAT refunds.
AirPro News analysis
We observe that Vertical Aerospace’s current situation serves as a microcosm for the broader Advanced Air Mobility (AAM) industry. The engineering challenge of building a functional, safe flying vehicle is gradually being solved, as evidenced by Vertical’s successful transition flights and automated battery production. However, the ultimate hurdle remains capital discipline. The grueling, multi-year regulatory certification processes required by the UK CAA, EASA, and FAA demand deep pockets. With a projected 12-month spend of $195 million against just $58 million in cash on hand, Vertical Aerospace is in a race against the clock to secure fresh capital before its runway ends, regardless of how promising its Battery-as-a-Service model or 1,500-strong order book may be.
Frequently Asked Questions (FAQ)
- What is the Vertical Aerospace Valo?
The Valo is a piloted, four-to-six-passenger electric vertical takeoff and landing (eVTOL) aircraft designed for zero-emission urban air mobility, capable of reaching 150 mph with a 100-mile electric range. - Why did Vertical Aerospace issue a “going concern” warning?
The company issued the warning because its projected cash outflows for the next 12 months ($195 million) significantly exceed its current cash reserves ($58 million as of March 24, 2026), creating material uncertainty about its ability to continue operations without raising additional capital. - What is the Battery-as-a-Service (BaaS) model?
BaaS is a recurring revenue strategy where Vertical Aerospace plans to supply replacement battery packs for its aircraft over their lifespan. The company expects each aircraft to require about 20 replacement packs, creating a long-term, high-margin revenue stream.
Sources: Vertical Aerospace March 24, 2026 Press Release and FY2025 Annual Report
Photo Credit: Vertical Aerospace
Technology & Innovation
Honeywell and Shield AI Partner on Certifiable Autonomy Stack
Honeywell Aerospace and Shield AI signed an MoU at Farnborough 2026 to develop a certifiable autonomy software stack.

Honeywell Aerospace and Shield AI signed a Memorandum of Understanding (MoU) on July 22, 2026, at the Farnborough International Airshow to develop a certifiable autonomy software stack for defense and commercial aircraft.
Announced in a joint press release, the collaboration targets a primary hurdle in uncrewed and autonomous aviation: regulatory Certification. By integrating Honeywell’s certified aerospace hardware with Shield AI’s mission autonomy Software, the companies intend to create a standardized foundation that eliminates the need to rebuild and recertify trust architectures for every new aircraft platform.
Integrating Anthem Avionics with Hivemind autonomy
The agreement centers on pairing the Honeywell Anthem avionics, navigation, and sensing portfolio with the Shield AI Hivemind Software Development Kit (SDK). Hivemind provides artificial intelligence-piloted flight capabilities, while Anthem supplies the design-assured hardware foundation required by aviation regulators.
This combined architecture is designed to support both defense and commercial applications, allowing operators to deploy autonomous systems across various uncrewed aircraft platforms without engineering bespoke hardware solutions for each vehicle.
“Honeywell Aerospace’s certified avionics, navigation, and sensing systems paired with Hivemind, which delivers mission autonomy for intelligent, collaborative operations, create a trusted foundation for AI-piloted flight,” said Gary Steele, Chief Executive Officer of Shield AI. “This collaboration reflects how the aerospace and defense ecosystem is evolving, bringing the best of autonomy and certified hardware to address transportation and national security challenges.”
Addressing the certification bottleneck
The aerospace industry faces persistent challenges in certifying artificial intelligence and machine learning systems. Regulators require strict design assurance before allowing autonomous systems to operate in shared airspace or complex military environments.
Honeywell Aerospace (Nasdaq: HONA) aims to bridge this gap by providing the certified hardware layer that regulators already recognize, enabling Shield AI’s software to operate within an approved safety envelope.
“Autonomy software can fly an aircraft, but trust has to be engineered into the architecture, not bolted on after,” said Matt Milas, President of Defense & Space at Honeywell Aerospace. “Our role is to build the certified, design-assured foundation that lets a warfighter, a regulator and a fleet operator all trust the same platform. That’s the layer we bring to this collaboration, the one that turns intelligence like Hivemind into something that can be deployed safely and at scale anywhere in the world.”
AirPro News analysis
The partnership between Honeywell and Shield AI highlights a critical maturation point
Photo Credit: Honeywell Aerospace
Technology & Innovation
Vertical Aerospace Signs eVTOL MoU for Portugal Resort
Vertical Aerospace and VIC Properties sign an MoU to evaluate Valo eVTOL services at the Pinheirinho estate in Comporta, Portugal.

UK-based manufacturer Vertical Aerospace and Portuguese real estate developer VIC Properties signed a Memorandum of Understanding (MoU) on July 27, 2026, to evaluate the integration of electric air mobility services at the 400-hectare Pinheirinho estate in Comporta, Portugal.
The agreement, announced in a joint press release, initiates site and infrastructure planning to establish the luxury resort destination as a test case for regional Electric Vertical Take-Off and Landing (eVTOL) transport. The partnership aims to connect major transit hubs, such as Lisbon, directly to the coastal estate, which will house the Six Senses Comporta resort.
Infrastructure and resort integration
VIC Properties, which manages €3 billion in assets and was established in 2018, is developing the Pinheirinho estate with a focus on luxury hospitality. The MoU outlines a framework to assess the physical and operational requirements for hosting Vertical Aerospace’s piloted, four-passenger Valo aircraft on the property.
João Cabaça, Co-founder and Chief Executive Officer of VIC Properties, stated that the estate is being developed to create a new benchmark for luxury hospitality on the Atlantic coast.
“A partnership with Vertical, a recognised pioneer in this emerging sector, is a natural extension of that ambition, as we truly believe that air mobility will shape the experience, the reach and connectivity of next-generation destinations such as Pinheirinho Comporta,” Cabaça said.
Vertical Aerospace expands operational footprint
The Portuguese agreement follows a series of regulatory and developmental milestones for Vertical Aerospace throughout July 2026. The manufacturer recently concluded its participation at the Farnborough International Airshow, where it conducted the first public demonstrations of the Valo eVTOL.
Vertical Aerospace currently holds approximately 1,500 pre-orders for the Valo aircraft across four continents. The company has secured commitments from commercial operators and lessors including American Airlines (AA), Japan Airlines (JL), GOL Linhas Aéreas (G3), Bristow Group, and Avolon.
Recent regulatory and funding milestones
Beyond the MoU with VIC Properties, Vertical Aerospace announced a strategic regulatory collaboration on July 22, 2026, with Saudi Arabia’s General Authority of Civil Aviation (GACA) to advance certification frameworks. The day prior, the UK government announced a £3.4 million backing for the ECLiPSE programme, led by Vertical Aerospace, to develop next-generation charging and thermal management technologies. The company also joined Honeywell Aerospace’s Project VERTI-GO, an EU-funded initiative focused on safely integrating eVTOL aircraft into European airspace.
Stuart Simpson, Chief Executive Officer of Vertical Aerospace, emphasized the role of the Valo in transforming regional transit for premium markets.
“The most exceptional destinations deserve an equally exceptional way to arrive. Vertical is creating a safer, cleaner, and quieter way to travel that is quicker, simpler and more enjoyable. This partnership is about understanding how a new category of air travel can integrate into the future of resort living and luxury hospitality,” Simpson noted.
AirPro News analysis
We view the partnership between Vertical Aerospace and VIC Properties as a strategic alignment of advanced air mobility with high-net-worth consumer markets. By targeting luxury resort destinations like the Pinheirinho estate, eVTOL manufacturers can establish early use cases where the premium cost of early-stage electric air travel aligns with customer expectations and willingness to pay.
Connecting a major international gateway like Lisbon directly to a coastal resort bypasses traditional ground infrastructure bottlenecks, providing a tangible value proposition for the Valo aircraft. Furthermore, Vertical Aerospace’s concurrent push for regulatory alignment in Europe and the Middle East suggests a deliberate strategy to secure operational footholds in regions heavily invested in luxury tourism and next-generation infrastructure.
Sources: Business Wire, Vertical Aerospace
Photo Credit: Vertical Aerospace
Technology & Innovation
Safran and AURA AERO Sign TG600 Deal for ERA Aircraft
Safran Helicopter Engines and AURA AERO signed a definitive TG600 turbogenerator agreement on July 27, 2026, for the hybrid-electric ERA.

Safran Helicopter Engines and AURA AERO signed a definitive agreement on July 27, 2026, to develop and integrate TG600 turbogenerators into the prototype of the Electric Regional Aircraft (ERA). The contract secures the critical power-generation architecture for the 19-seat hybrid-electric aircraft, advancing the program toward its first flight and industrialization.
Announced in a joint press release, the agreement transitions a June 2023 Memorandum of Understanding into a binding development phase. The ERA will utilize a distributed hybrid-electric Propulsion system, relying on two Safran TG600 turbogenerators to supply power to eight ENGINeUS electric motors mounted along the wings.
Propulsion architecture and technical specifications
The integration of the propulsion system is a joint effort between Safran Helicopter Engines, Safran Electrical & Power, and AURA AERO. Each TG600 turbogenerator is capable of delivering 600 kilowatts of electrical power output. These units will generate the electricity required to drive the eight ENGINeUS motors during flight phases that demand sustained power, enabling the aircraft to achieve its maximum range of 900 nautical miles (1,500 kilometers).
Cédric Goubet, President of Safran Helicopter Engines, stated that the TG600 will be an essential element of the ERA’s hybrid propulsion system.
“We are particularly pleased to reach this important milestone in our Partnerships with Aura Aero and thus contribute to advancing the decarbonization of aviation alongside this up-and-coming French aircraft manufacturer. Our teams will now work with those of Aura Aero towards the first flight of a prototype.”
The turbogenerator agreement follows a related announcement on July 20, 2026, in which Safran Electrical & Power and AURA AERO expanded their strategic partnership. That agreement focused on the serial production of the fully electric INTEGRAL E trainer aircraft and confirmed the selection of the ENGINeUS motors for the ERA. Jérémy Caussade, President and Co-founder of AURA AERO, noted that strengthening the partnership with Safran Electrical & Power consolidates the technological and industrial roadmap for both aircraft programs.
Market momentum for the ERA and TG600
The definitive agreement with Safran provides industrial backing for the ERA as AURA AERO works to convert its initial market interest into a firm backlog. In March 2026, French private airline Pan Européenne Air Service placed the first firm Orders for the ERA. Prior to this firm order, AURA AERO had secured approximately 700 Letters of Intent (LOIs) for the aircraft, representing an estimated total value of $12 billion.
The TG600 turbogenerator is also gaining traction beyond the ERA program. On July 15, 2026, Safran Helicopter Engines secured a life-of-program production agreement with United States-based Manufacturers Electra. Under that Contracts, Safran will supply the TG600 for Electra’s EL9 Ultra Short hybrid-electric aircraft, demonstrating broader industry adoption of the 600 kW power generation architecture for next-generation regional platforms.
AirPro News analysis
We view the July 27 agreement as a critical de-risking milestone for AURA AERO. Transitioning from a Memorandum of Understanding to a definitive development contract with a Tier 1 aerospace supplier like Safran provides the ERA program with necessary industrial credibility. The sequential announcements throughout July 2026, including the INTEGRAL E production agreement and the Electra TG600 contract, indicate that Safran is aggressively positioning its turbogenerator and electric motor portfolios as the default propulsion solutions for the emerging sub-20-seat hybrid-electric market. Securing firm hardware commitments is essential for AURA AERO to convert its substantial $12 billion backlog of Letters of Intent into firm orders, following the initial commitment from Pan Européenne Air Service.
Sources: AURA AERO
Photo Credit: AURA AERO
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