Technology & Innovation
Vertical Aerospace Achieves Milestone Flight and Secures $850M Financing
Vertical Aerospace completed a historic two-way piloted eVTOL flight and secured $850M financing, targeting commercial certification by 2028.
This article is based on an official press release from Vertical Aerospace.
Vertical Aerospace Reports Q1 2026 Milestones: Historic Flight and $850M Financing Secure Path to 2028
UK-based electric aviation developer Vertical Aerospace (NYSE: EVTL) has reached a critical inflection point in its journey toward commercializing eVTOL aircraft. On May 6, 2026, the company released its Q1 2026 Business & Strategy Update, detailing significant technical achievements and a stabilized financial foundation.
According to the official press release, Vertical Aerospace has successfully completed a two-way piloted transition flight, marking a major first for the eVTOL industry under civil aviation authority oversight. Coupled with the recent closure of a massive $850 million financing package, the company has effectively removed prior “going concern” warnings, securing its financial runway as it targets commercial certification in 2028.
We have reviewed the company’s Q1 2026 disclosures to break down what these milestones mean for the broader advanced air mobility (AAM) sector, the company’s capital strategy, and the upcoming commercial rollout of its flagship aircraft.
Technical Milestones and the Path to Certification
Historic Two-Way Transition Flight
The standout technical achievement in Vertical Aerospace’s Q1 report is the successful completion of a full two-way piloted transition flight. According to the company, Vertical is the first eVTOL developer to achieve this milestone under the direct regulatory oversight of a civil aviation authority, specifically the UK Civil Aviation Authority (CAA).
During this test, the aircraft successfully took off vertically, transitioned into forward wing-borne flight, and then transitioned back to vertical flight for a safe landing, all with a pilot on board. This maneuver is widely considered one of the most complex aerodynamic challenges in eVTOL development.
“This quarter represents a clear inflection point for Vertical. The successful completion of two-way piloted transition flight demonstrates our aircraft’s performance in real-world conditions and validates the core architecture required for certification.”
Following this successful demonstration, the company stated it is now shifting its focus from technology demonstration to certification-focused development. Vertical Aerospace is on track to complete its Critical Design Review (CDR), a crucial step that will lock in the certifiable design baseline for the aircraft. Additionally, the press release noted that a third prototype aircraft is expected to begin flight testing shortly.
Financial Turnaround and Capital Efficiency
Securing the Runway
Earlier in 2026, Vertical Aerospace faced significant financial headwinds, issuing a “going concern” warning to investors as cash reserves dwindled. However, the Q1 2026 update confirms a dramatic financial turnaround. In March and April 2026, the company secured a comprehensive financing package worth up to $850 million, backed by Mudrick Capital Management and Yorkville Advisors Global.
According to the company’s financial disclosures, this package includes $50 million in newly raised equity, with an initial $30 million already drawn down from the available facilities. This influx of capital provides the necessary funding to build pre-production aircraft and navigate the rigorous certification process.
“The Company has demonstrated strong execution against all valuation metrics, and we are confident in Vertical’s ability to advance toward certification and commercialization.”
Vertical ended Q1 2026 with approximately $96 million (£73 million) in cash and cash equivalents. The company reported access to roughly $103 million (£76 million) in short-term liquidity, bolstered by anticipated near-term receipts of approximately $23 million from R&D tax reliefs and $7 million from government grants. While expected net cash outflows over the next 12 months are projected between $180 million and $200 million to support public flight demonstrations and certification activities, the company confirmed that its current liquidity and new financing facilities provide at least a 12-month runway.
AirPro News analysis
Vertical Aerospace’s financial strategy under CEO Stuart Simpson highlights a stark contrast in capital efficiency compared to its American competitors. Simpson, who joined as CFO in September 2023 before taking the helm, has positioned the company to do more with less. Based on public remarks from March 2025, Vertical spent approximately $350 million over three years, nearly $1 billion less than the industry average required to reach similar development stages.
Furthermore, Vertical is playing a disciplined long game. While US-based rivals like Joby Aviation and Archer Aviation are aggressively targeting commercial launches in late 2026 or 2027 in markets like the UAE and the US, Vertical is aiming for a 2028 entry into service. By focusing first on the stringent safety standards of the UK CAA and the European Union Aviation Safety Agency (EASA), Vertical is betting that achieving airliner-level safety certification in Europe will pave the way for a smoother, more sustainable global rollout.
Introducing Valo: Designed for Commercial Reality
Aircraft Specifications and Pre-orders
In December 2025, Vertical Aerospace officially rebranded its flagship VX4 prototype to its commercial name: Valo. The Q1 update provided further insights into the commercial viability of this aircraft.
According to the company, Valo is a piloted, zero-operating-emissions eVTOL designed to fly up to 100 miles at speeds reaching 150 mph. The aircraft features a premium cabin that will launch with four passenger seats, which is expandable to six. Crucially, Vertical noted that the aircraft was designed with direct feedback from airlines. This collaboration resulted in Valo featuring the largest cargo hold in its class, capable of accommodating six cabin bags and six checked bags, a vital feature for practical airport-to-city-center routes.
The development of Valo is supported by tier-one aerospace partners, including Honeywell for flight control systems and avionics, as well as Syensqo and Aciturri. This collaborative approach has resonated with the market; Vertical Aerospace reported a robust pre-order book of approximately 1,500 Valo aircraft from major global operators, including American Airlines, Avolon, Bristow, GOL, and Japan Airlines.
Frequently Asked Questions (FAQ)
What is the Valo?
Valo is the commercial name for Vertical Aerospace’s flagship eVTOL aircraft (formerly known as the VX4). It is a piloted, zero-emissions aircraft capable of flying up to 100 miles at 150 mph, featuring seating for up to six passengers and class-leading luggage capacity.
When will Vertical Aerospace launch commercially?
According to the company’s strategic roadmap, Vertical Aerospace is targeting commercial certification with the UK CAA and European EASA by 2028.
How much funding did Vertical Aerospace recently secure?
In early 2026, the company secured a comprehensive financing package worth up to $850 million, backed by Mudrick Capital Management and Yorkville Advisors Global, which successfully removed prior “going concern” warnings.
Sources: Vertical Aerospace Q1 2026 Earnings Call Press Release
Photo Credit: Vertical Aerospace
Technology & Innovation
Joby Aviation and Toyota Form eVTOL Manufacturing Joint Venture
Joby Aviation and Toyota establish a joint venture to manufacture the S4 eVTOL, with Toyota holding a 51% stake.
Joby Aviation, Inc. (JOBY) and Toyota Motor Corporation (TM) have formalized their nearly decade-long partnership by establishing a joint venture to manufacture electric vertical take-off and landing (eVTOL) aircraft. The new entity, named the Joby Toyota Aero Manufacturing Preparation Company, will focus on scaling commercial production of the Joby S4 Series eVTOL aircraft.
Announced in a press release on June 30, 2026, following a U.S. Securities and Exchange Commission (SEC) 8-K filing on June 29, 2026, the alliance combines Joby’s electric aviation technology with Toyota’s established production systems expertise. The joint venture will operate across locations in Santa Cruz, California, and Toyota City, Japan.
Joint venture structure and financial stakes
Toyota holds a 51 percent majority stake in the new manufacturing company, acquired through the purchase of 1.02 million shares for $1.02 million. Joby retains the remaining 49 percent stake, having purchased 980,000 shares for $980,000. The joint venture will be governed by a five-member board of directors, with three members designated by Toyota and two designated by Joby.
The agreement includes specific intellectual property licensing arrangements between the two parent companies. Joby will license certain aircraft-related intellectual property to the joint venture on a royalty-free basis. In return, Toyota will license manufacturing-related intellectual property to the venture, which includes certain royalty-bearing rights.
Scaling eVTOL production
The formal joint venture builds upon a foundation of significant financial and technical support from the Japanese automaker. Toyota has provided approximately $900 million in total capital to Joby to date. The automaker is already providing technical assistance as Joby establishes a series production line for the S4 eVTOL aircraft at a facility in Ohio.
In the June 30 press release, Joby Aviation founder and CEO JoeBen Bevirt highlighted the depth of the corporate relationship.
“Toyota has been by Joby’s side for nearly a decade, providing invaluable guidance and support as we built the foundation for Manufacturing our aircraft. Today’s announcement reflects the strength of our relationship and our shared confidence in the opportunity ahead.”
Toyota Motor Corporation Chairman Akio Toyoda stated that the company views air mobility as a natural extension of its philosophy of providing mobility for all, expanding its focus from the ground into the sky to bring new value to society.
Certification progress and next steps
The manufacturing alliance aligns with Joby’s ongoing Certification efforts with the U.S. Federal Aviation Administration (FAA). During the first quarter of 2026, Joby began flying its first FAA-conforming aircraft for type inspection authorization. This testing phase is a required step as the company works toward achieving full FAA type certification for the S4 Series.
With the joint venture now legally established, the two companies will begin integrating their engineering and manufacturing teams across the California and Japan facilities to prepare for high-volume aircraft production.
AirPro News analysis
We view the formalization of the Joby Toyota Aero Manufacturing Preparation Company as a critical de-risking event for Joby’s production ambitions. While designing and certifying an eVTOL aircraft presents significant regulatory hurdles, manufacturing these vehicles at scale with automotive-style efficiency is an entirely different challenge that has historically troubled aerospace Startups. By securing a majority-stake commitment from Toyota, Joby gains direct access to one of the world’s most proven manufacturing systems. Furthermore, the intellectual property arrangement, where Toyota retains royalty-bearing rights on its manufacturing processes, suggests the automaker sees long-term revenue potential in aerospace production beyond its initial capital Investments.
Photo Credit: Joby Aviation
Sustainable Aviation
KBR Selected for Asia’s First Ethanol-to-Jet SAF Plant in Singapore
KBR will provide PureSAF technology licensing and FEED services for a 100,000-ton/year SAF facility on Jurong Island, Singapore.
On June 29, 2026, KBR announced its selection by Keppel Ltd. and Aster Chemicals and Energy to provide technology licensing and Front-End Engineering Design (FEED) services for a proposed 100,000-ton-per-year SAF (SAF) facility on Jurong Island, Singapore.
The planned facility is envisioned as Asia’s first commercial-scale ethanol-to-jet (EtJ) SAF plant. According to the KBR press release, the project will utilize the company’s PureSAF technology to produce a 100% drop-in jet fuel, supporting Singapore’s national mandate to increase sustainability usage across the aviation sector.
PureSAF technology and project scope
The Jurong Island facility will leverage PureSAF, a technology originally developed by Swedish Biofuels AB and engineered for commercial-scale production by KBR, which holds the exclusive global license. The process is designed to convert ethanol into aviation fuel that requires no blending with conventional Jet A or Jet A-1 before use.
In a statement accompanying the announcement, KBR President and CEO Stuart Bradie highlighted the system’s flexibility.
“KBR’s PureSAF is a feedstock-flexible, bankable technology that is designed to deliver a 100% drop in jet fuel, ready to power aircraft without blending. We are constantly innovating our SAF solution to make it compatible with feedstock availability in different regions and to enable the aviation industry to transition to low-carbon jet fuel with a cost-optimized approach.”
The FEED study will determine the technical configuration and project capital expenditure required for the facility. The development remains subject to regulatory approvals and a final investment decision (FID) by the project partners.
Aligning with Singapore’s aviation mandates
The selection of KBR follows a January 28, 2026, agreement between Keppel’s Infrastructure Division and Aster to jointly assess the development of the Jurong Island site. Aster operates as a joint venture between Indonesian petrochemical company Chandra Asri and Swiss commodities trader Glencore.
The proposed 100,000-ton annual production capacity aligns directly with targets set by the Civil Aviation Authority of Singapore (CAAS). Starting in 2026, the CAAS mandates a 1% SAF uplift for all departing flights from the country, with a stated goal of increasing that requirement to between 3% and 5% by 2030.
Alongside the SAF plant contract, KBR and Keppel signed a Memorandum of Intent to collaborate on broader energy transition initiatives. The companies plan to explore technologies related to waste-to-energy, plastic recycling, biofuels, and artificial intelligence-driven digitalization.
AirPro News analysis
We view the progression of the Jurong Island project to the FEED stage as a critical indicator of the Asia-Pacific region’s readiness to scale SAF production. While North America and Europe have led early SAF capacity investments, Singapore’s firm regulatory mandate provides the demand certainty required to underwrite commercial-scale facilities in Southeast Asia. The choice of an ethanol-to-jet pathway is particularly notable, as it allows operators to bypass the constrained supply of fats, oils, and greases that limit hydroprocessed esters and fatty acids (HEFA) production volumes. The project’s ultimate realization hinges on the upcoming final investment decision, which will test the commercial viability of the EtJ process in the current economic environment.
Sources: KBR
Photo Credit: KBR
Technology & Innovation
Mako Aerospace Indicates $28M Series A for Electric Jet Engine
Scottish startup Mako Aerospace indicates a $28M Series A to advance its superconductor-based all-electric jet engine prototype.
Mako Aerospace, a Scottish aerospace startups developing all-electric jet engine technology, has indicated the closure of a $28 million Series A funding round to advance its propulsion systems.
A URL published on the company’s domain outlines the capital injection for the Dunfermline-based manufacturers. Mako Aerospace is currently developing “The Forerunner,” an all-electric jet engine prototype utilizing superconductor technology designed to extend the range of electric aircraft.
Advancing all-electric propulsion
Led by Chief Executive Officer Kieran Duncan and Chief Operations Officer Pia Saelen, Mako Aerospace is focused on reducing operating expenses for aircraft operators. The company targets a 70% reduction in fuel costs compared to traditional turboprop engines using its proprietary technology.
In September 2022, Mako Aerospace announced a partnerships with the National Manufacturing Institute Scotland (NMIS) to manufacture the prototype of its electric jet engine. The reported $28 million Series A would provide the capital required to scale this development and pursue experimental certification for the propulsion system.
Funding verification and industry context
The $28 million funding figure originates from a dedicated URL on the Mako Aerospace website. The primary press release is not currently accessible through public web searches, and the funding round has not yet been confirmed by regulatory filings or secondary financial press.
If completed, a $28 million Series A represents a substantial investments in the electric aviation sector. Startups developing novel propulsion systems require significant early-stage capital to transition from conceptual design to physical prototyping and testing.
AirPro News analysis
We note that while the $28 million figure is substantial for a regional aerospace startup at this stage, the lack of accessible public filings or widespread syndication of the press release warrants caution. Developing an all-electric jet engine using superconductors is a highly capital-intensive process. If the funding is fully realized, it will likely bridge the gap between the NMIS-supported prototype phase and initial ground testing. Certification by aviation authorities remains a distant and expensive hurdle for any novel propulsion technology.
Sources: Mako Aerospace
Photo Credit: Mako
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