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
Sustainable Aviation
American Airlines and Google Sign 35M-Gallon SAF Deal
American Airlines and Google agree to purchase 35 million gallons of SAF certificates, cutting nearly 300,000 metric tons of CO2e.

American Airlines Group Inc. (AAL) and Google have signed an agreement to purchase 35 million gallons of sustainable aviation fuel certificates over the next three years, marking the largest publicly announced transaction of its kind between an Airlines and a single corporate customer.
Announced on June 9, 2026, the partnership will facilitate the delivery of physical sustainable aviation fuel (SAF) to Chicago O’Hare International Airport (ORD) via Valero Marketing and Supply Company. The agreement is projected to reduce greenhouse gas emissions by nearly 300,000 metric tons of carbon dioxide equivalent (CO2e), allowing Google to offset the environmental impact of its employee business travel.
Scaling sustainable aviation fuel
The sustainable aviation fuel certificates (SAFc) model allows corporate customers to claim the environmental benefits of the fuel even if they do not physically consume it on their specific flights. Google will utilize the SAFc Registry to apply these emissions reductions against its corporate travel footprint.
“This strategic collaboration with American Airlines demonstrates how companies can work together to scale critical sustainability technologies. By entering into this long-term commitment, we are sending a vital demand signal to catalyze investment and bring more SAF to market,” said Kate Brandt, Chief Sustainability Officer at Google.
American Airlines stated the agreement is a critical step in reducing operational emissions and growing market demand for SAF. According to the airline, the aviation industry currently accounts for 2 to 3 percent of global carbon dioxide emissions. Google noted that SAF has the potential to reduce air travel emissions by up to 80 percent compared to traditional jet fuel.
Legislative incentives and prior collaborations
The transaction was facilitated by a recently enacted sustainable aviation fuel tax credit passed by the Illinois General Assembly. The legislation is designed to incentivize the delivery and utilization of SAF within the state.
“This agreement demonstrates how our nation-leading SAF tax credit can bring industry leaders together as we work toward a more sustainable future. Through partnerships with innovators like American Airlines and Google, we’re strengthening Illinois’ role as a global aviation hub and accelerating the transition to cleaner energy,” said Illinois Governor JB Pritzker.
This SAFc agreement follows a 16-week pilot program conducted by American Airlines and Google in 2025. That initiative, which also included Flightkeys and Contrails.org, embedded contrail avoidance models into flight planning and reportedly achieved a 62 percent reduction in contrail formation.
AirPro News analysis
We view this 35-million-gallon agreement as a significant indicator of how corporate sustainability budgets are increasingly subsidizing the premium cost of SAF. While 35 million gallons over three years represents a fraction of American Airlines’ total annual fuel consumption, long-term offtake agreements are essential for producers like Valero to secure financing for expanded refining capacity. The use of the SAFc Registry also highlights the growing maturation of the book-and-claim model, which decouples the environmental attributes of SAF from the physical fuel, solving logistical bottlenecks at airports that lack the infrastructure to receive blended SAF directly.
Sources: American Airlines
Photo Credit: American Airlines
Technology & Innovation
Vertical Aerospace Completes Valo Final Prototype First Flight
Vertical Aerospace flew its final full-scale Valo eVTOL prototype on June 5, 2026, doubling its flight test fleet ahead of a 2028 service target.

Vertical Aerospace completed the maiden piloted flight of its final full-scale Valo electric vertical takeoff and landing (eVTOL) prototype on June 5, 2026, at the company’s United Kingdom Flight Test Centre.
Announced in a press release on June 9, 2026, the maiden flight marks the beginning of an expanded flight test campaign. The addition of this aircraft doubles the manufacturer’s flight testing capacity as it advances toward its Critical Design Review (CDR) and a targeted 2028 entry into commercial service.
Advancing toward Critical Design Review
The flight occurred at 8:49 BST under the oversight of the UK Civil Aviation Authority (CAA), with Vertical Aerospace Test Pilot Paul Stone at the controls. This aircraft is the final prototype to join the test fleet before the company finalizes its certifiable design through the CDR process. Completing the CDR will clear the path for the assembly of the first pre-production Valo aircraft.
“Getting our latest prototype into flight testing is an important milestone because it allows us to learn faster in real world conditions and keep building momentum towards certification. Expanding the flight test fleet will help us validate the aircraft more quickly, reduce risk, and move more efficiently towards bringing Valo into service,” said Stuart Simpson, CEO of Vertical Aerospace.
Hybrid-electric testing and program milestones
Following the conclusion of its all-electric flight test phases, Vertical Aerospace plans to retrofit this specific prototype to conduct hybrid-electric flight testing. The company previously announced on May 19, 2026, that it had commenced integration testing for its next-generation hybrid-electric propulsion system using a dedicated evaluation rig at Cotswold Airport.
The four-passenger Valo aircraft, which succeeds the earlier VX4 prototype design unveiled in December 2025, made its United States debut in January 2026. The manufacturer reports approximately 1,500 pre-orders for the aircraft from operators across four continents, including American Airlines, Avolon, Bristow Group, GOL, and Japan Airlines.
AirPro News analysis
We view the successful flight of this final prototype as a critical operational step for Vertical Aerospace. Doubling the active flight test fleet provides the data volume necessary to satisfy CAA certification requirements by the 2028 target. The planned transition of this airframe to hybrid-electric testing also indicates a strategic hedge, allowing the manufacturer to develop longer-range variants in parallel with its baseline all-electric model.
Sources: Vertical Aerospace Press Release, Vertical Aerospace
Photo Credit: Vertical Aerospace
Technology & Innovation
Airbus Triples Computing Power With Two HPC6 Supercomputers
Airbus installed two Bull HPC6 supercomputers, tripling throughput to support digital testing for the A350 Freighter and future rotorcraft.

Airbus has deployed two new high-performance supercomputers, tripling its computational throughput to accelerate the digital design and testing of next-generation Commercial-Aircraft and rotorcraft.
In a company publication released on June 9, 2026, the European aerospace Manufacturers detailed its installation of two HPC6 systems provided by Bull, a European advanced computing and artificial intelligence firm. The upgraded infrastructure allows Airbus engineers to substitute physical testing with high-fidelity digital calculations, a transition the company has been advancing for two decades.
Expanding digital testing capabilities
The integration of the HPC6 supercomputers enables Airbus to evaluate complex aircraft configurations with greater precision. The application of high-performance computing at the manufacturer has expanded beyond traditional flight physics and airframe development to include powerplant and systems testing.
Engineers can now conduct digital simulations for scenarios that previously required extensive physical trials, such as birdstrike resistance on cockpit windows and engine components.
Supercomputers help create finer 3D representations of objects, enabling the exploration of more complex design and more detailed simulations to achieve higher fidelity.
Jean Gutierrez, Scientific Computing Product Manager in Engineering at Airbus, noted that the increased capacity allows the engineering team to handle larger problems. The enhanced computing power moves the design process closer to reality by reducing the allowable margin of error, which would otherwise necessitate physical testing.
Current program support and energy management
The newly installed HPC6 systems are already operational and supporting active Airbus programs. The manufacturer confirmed the supercomputers are currently utilized in the development of the Airbus A350 Freighter, alongside future Helicopters platforms.
To mitigate the energy footprint of the expanded computing infrastructure, Airbus is developing a local heat exchange system. The initiative is designed to capture the thermal output generated by the supercomputers and redirect it into local power grids.
AirPro News analysis
We view the tripling of Airbus’ computational power as a necessary infrastructure investment to maintain pace with the industry’s shift toward model-based systems engineering. As Regulations agencies demand increasingly rigorous certification data, the ability to generate high-fidelity digital simulations for extreme edge cases provides a distinct schedule advantage. The integration of a heat recovery system also demonstrates a pragmatic approach to the high energy demands inherent in advanced computing facilities.
Sources: Airbus
Photo Credit: Airbus
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