< Previous10 NEWS APRIL – MAY 2026 ARCHER BUILDS $2BN LIQUIDITY AHEAD OF 2026 FLIGHTS Archer Aviation has ended 2025 with record liquidity of $1.96bn and confi rmed that its US and UAE air taxi pilot programmes remain on track for fi rst passenger fl ights in 2026, as the company accelerates certifi cation and fl eet expansion efforts. The Santa Clara-based eVTOL developer disclosed that it has secured fi nal US Federal Aviation Administration acceptance of 100% of its Means of Compliance for the Midnight aircraft, becoming the fi rst eVTOL manufacturer to reach this certifi cation. The company is targeting piloted vertical take-off and landing operations later this year under the White House’s eVTOL Integration Pilot Program and its UAE commercial launch programme. 2026 certifi cation target Founder and CEO Adam Goldstein stated that seven years of development are converging as the company advances towards commercial operations. The FAA acceptance of Midnight’s Means of Compliance establishes the agreed criteria under which the aircraft must demonstrate airworthiness. Archer expects to fi nalise its remaining certifi cation plans in the coming quarters, clearing the path for Type Inspection Authorisation activities as early as 2026. Passenger-carrying operations are scheduled to begin in 2026, with initial fl ights including a pilot and additional occupants. Financial performance For the year 2025, Archer recorded operating expenses of $729.6m, up from $509.7m in 2024, refl ecting increased investment in development, certifi cation, and production activities. Net loss widened to $618.2m compared with $536.8m a year earlier. Fourth quarter operating expenses reached $234.7m, with a net loss of $188.9m. Adjusted EBITDA for the quarter was a loss of $137.9m, within the company’s previously issued guidance range of $110m to $140m. Liquidity increased by $1.13bn year on year, supported by three registered direct offerings that generated gross proceeds of $1.8bn. Cash used in operating activities totalled $432.9m in 2025, while $78.8m was invested. Archer estimates fi rst quarter 2026 will range between a loss of $160m and $180m. Archer reports $1.96bn liquidity in 2025 as US and UAE air taxi pilot programmes target fi rst passenger fl ights in 2026 AVB_Apr2026_8-11_News_13867441.indd 1010/04/2026 12:0011 NEWS APRIL – MAY 2026 SOUTH KOREA POLICE RAID TRANSPORT MINISTRY IN JEJU AIR PROBE South Korean police have conducted a raid on the Ministry of Land, Infrastructure and Transport amid growing concerns regarding the investigation into the Jeju Air Flight 2216 disaster, which resulted in one of the nation’s deadliest aviation tragedies. The incident, which occurred on 29 December 2024 at Muan International Airport, claimed the lives of 179 individuals, leaving only two survivors, both flight attendants, who were seated in the tail section of the aircraft. Ongoing investigative efforts Initial fi ndings revealed the Boeing 737-800 had suffered a bird strike prior to its crash landing, ultimately colliding with a concrete mound, which exacerbated the severity of the incident. The recent discovery of additional body parts and personal belongings of victims has triggered public outrage, leading President Lee Jae Myung to mandate a thorough investigation into the circumstances surrounding the crash, including potential negligence by authorities. Disciplinary actions have been ordered against responsible parties for the delayed recovery of human remains, further compounding the distress faced by victims’ families. Moreover, a separate audit highlighted that the concrete structure, designed to house navigation equipment, had been constructed with cost-cutting measures in mind, failing to adhere to safety protocols that may have prevented the fatalities. Simulations indicated that the crash might have been survivable had the aircraft not encountered the concrete mound. In response to these fi ndings, aviation authorities have since removed similar structures from multiple airports, highlighting a critical shift in safety priorities following this tragic incident. Authorities have also intensifi ed scrutiny of regulatory oversight surrounding airport infrastructure and emergency response procedures. Investigators are reviewing whether earlier safety warnings or compliance gaps were overlooked, whilst families of the victims have called for greater transparency in the inquiry and stronger accountability across aviation safety management systems. South Korean police raided the transport ministry amid rising scrutiny over the Jeju Air Flight 2216 disaster that killed 179 people AVB_Apr2026_8-11_News_13867441.indd 1110/04/2026 12:0012 ONLINE APRIL – MAY 2026 New York’s LaGuardia Airport suspended all fl ight operations after an Air Canada Express aircraft collided with a ground vehicle on a runway late on 22 March, prompting an emergency ground stop issued by the US Federal Aviation Administration. IndiGo introduced a fuel surcharge on domestic and international fl ights from 14 March, increasing ticket prices on several routes including services between India and Oman. The airline stated that the additional charge follows an increase in aviation fuel costs. Dubai Airports CEO Paul Griffi ths praised frontline aviation teams for their resilience and professionalism as fl ight operations gradually resume across the emirate’s two airports. Griffi ths said the events had been “unprecedented” for the aviation sector. Shareholders of Air Arabia have authorised a dividend distribution of AED1.4bn equivalent to about $381m for the 2025 fi nancial year following approval at the company’s annual general meeting. Investors endorsed a dividend of 30 fi ls per share during the meeting. WHAT'S TRENDING ONLINE aviationbusinessme.com Air Canada crash halts LaGuardia airport operations NY IndiGo fuel surcharge raises fares on Oman and India routes Paul Griffiths praises airport teams during operations restart Air Arabia shareholders approve $381m dividend payout in AGM WHAT OUR READERS THINK... Talking about the outlook for the aviation sector this year…... “Technology is becoming central to how aviation operates. Airlines and airports are investing in smarter systems, digital coordination and better passenger processes to support growth and improve effi ciency across increasingly complex global travel networks.” —Mark, Aviation Strategy Director AVB_Apr2026_12-13_Trending_13870051.indd 1208/04/2026 13:48APRIL – MAY 202613 ONLINE MIDDLE EAST FLIGHT CANCELLATIONS HIT 32,500 AFTER FEB 28 WEEK Air traffi c across the Middle East has experienced signifi cant disruption since February 28, with more than 32,500 fl ights cancelled out of 58,500 scheduled services across a single week following widespread airspace closures and airline adjustments by airlines according to Cirium. Regional aviation authorities and airlines implemented contingency measures designed to maintain safety standards while managing fl uctuating demand and operational constraints aff ecting airspace availability generating enormous volatility in fl ight availability and fare rates throughout March. APRIL – MAY 2026 AVB_Apr2026_12-13_Trending_13870051.indd 1308/04/2026 13:48REPORT | IN NUMBERS 14 APRIL - MAY 2026 HIGHEST LOAD FACTOR ASIA-PACIFIC SECOND PLACE Asia-Pacifi c carriers recorded the highest load factor at 86.6%, up 1.0 percentage point, supported by strong seasonal demand including Lunar New Year travel. Demand rose 8.6% with capacity up 7.3%. DOMESTIC DEMAND GLOBAL DEMAND The aviation sector experienced a strong month in February of 2026, according to the International Air Transport Association’s (IATA) latest report. Globally, total passenger demand, measured in revenue passenger kilometres (RPK), was up 6.1% compared to February 2025. Total capacity, measured in available seat kilometres (ASK), saw a 5.6% year-on-year growth. Meanwhile, the global load factor reached 81.4%, a 0.3 percentage point increase compared to February 2025. On domestic routes, demand rose 6.3% with a capacity increase of 6.2%. The load factor, however, only increased by 0.1 percentage points to 82.8%, compared with February 2025. INTERNATIONAL DEMAND International demand rose by 5.9% year-on-year, accompanied by a 5.3% growth in capacity, improving the load factor to 80.5%, up 0.5 percentage points. IN NUMBERS LATIN AMERICA Latin American airlines posted a load factor of 85.0%, rising 3.1 percentage points year-on- year. Demand surged 13.5% alongside a 9.3% capacity increase, marking the strongest traffi c growth globally. AVB_Apr2026_14-15_In Numbers_13884168.indd 1408/04/2026 14:01IN NUMBERS | REPORT 15APRIL - MAY 2026 THE MIDDLE EAST FIFTH PLACE FOURTH PLACE EUROPE Middle Eastern airlines recorded a load factor of 79.6%, down 2.2 percentage points. Demand grew slightly by 0.9%, while capacity expanded faster at 3.8%. European carriers reported a load factor of 75.6%, up 0.4 percentage points year- on-year. Demand rose 5.0% with capacity increasing 4.5%. THIRD PLACE AFRICA LOWEST LOAD FACTOR African airlines posted the lowest load factor at 74.5%, declining 1.3 percentage points despite a 4.8% increase in demand and a 6.6% rise in capacity. North American carriers reached a load factor of 80.9%, up 2.0 percentage points. Demand increased 5.0% while capacity rose 2.4%, tightening seat utilisation. NORTH AMERICA AVB_Apr2026_14-15_In Numbers_13884168.indd 1508/04/2026 14:01APRIL – MAY 202616 INTERVIEW | FLEET VOLATILITY While automation and sustainability dominate industry debate, aircraft utilisation limits and route volatility are emerging as another potential structural variable that may moderate the pace FLEET VOLATILITY AND THE CONSTRAINTS ON FUTURE AIRPORT GROWTH Global passenger demand has recovered strongly, yet aircraft production remains constrained. Delivery backlogs at major manufacturers, engine inspection programmes grounding narrowbody fl eets, and extended fl ight times due to airspace restrictions are limiting airlines’ deployment fl exibility. At the same time, airports are advancing multi-billion- pound expansion programmes based on long-term capacity forecasts. This divergence between demand, fl eet availability and infrastructure planning cycles is introducing further complexity into airport masterplanning assumptions. Airport infrastructure strategy is entering a phase in which airline fl eet constraints and geopolitical airspace disruptions are shaping capacity planning. Airline fl eet constraints and capacity formation Aircraft manufacturers continue to experience delivery backlogs and supply chain strain. Engine durability inspections have grounded segments of next-generation fl eets, while production ramp-ups remain below pre-pandemic projections. Airlines seeking growth are competing for limited delivery slots and prioritising access to more fuel- effi cient aircraft. As James Bruce, Aviation Market Director, Middle East & Africa, AtkinsRealis, observed, “Right now, there aren’t enough aircraft around the world to meet the demand that there is.” That constraint shifts capacity planning towards actual fl eet deployment. Airports have historically expanded against relatively stable assumptions about airline scheduling behaviour. However, those assumptions are weakening due to external limitations on airlines and manufacturers. Bruce stated, “One of the biggest challenges when it comes to airports delivering capacity in the next fi ve to ten years is going to be what happens with airlines and their fl eets and their schedule and route planning.” Utilisation patterns and peak distortion Geopolitics is also reshaping aircraft utilisation patterns. Airspace restrictions have extended fl ight durations on several long-haul corridors, with rerouting around restricted territories adding signifi cant block time on intercontinental routes. Longer sector times reduce daily aircraft rotations and alter fl eet productivity. The operational effect has been evident. Bruce argues, “We’re seeing airlines having to fl y two to three hours longer to get to the destination, which means aircraft are in the air for longer, further meaning they can’t operate their aircraft as frequently in a certain period of time.” frequency alters hub bank structures, changing the temporal distribution of passenger fl ows. Airport peak modelling relies on predictable clustering of arrivals and departures. If aircraft rotation patterns shift, the shape of peak demand shifts with them. “I think that is going to infl uence airports… we may start to see some different shapes and patterns in terms of how the airlines need to operate.” Planning horizon misalignment Airlines operate on short planning cycles linked to fleet deployment and route profi tability, while airport capital programmes operate on multi-year development horizons. Right now, there aren’t enough aircraft around the world to meet the demand that there is AVB_Apr2026_16-17_Interview_13872882.indd 1610/04/2026 12:0217 APRIL – MAY 2026 FLEET VOLATILITY | INTERVIEW That gap increases exposure to volatility. Bruce added, “Airlines plan their schedules only 6 to 18 months ahead. Airports tend to plan medium to major capacity enhancements for the next 10 to 15 years.” When fl eet deployment assumptions change within that timeframe, late-stage design alterations and phasing adjustments become more likely. Programme acceleration is often assumed to protect against uncertainty, but in practice, compressed schedules amplify risk when the baseline is unstable. “Being clear about what the minimum technical requirements are and the goals and objectives around what needs to be delivered, when it needs to be delivered, and why it is being delivered, helps set up for success,” Bruce commented. Delivery integration as a flexibility mechanism As a third constraint on the industry that Bruce signals now, contractual structure infl uences an airport’s ability to respond to altered assumptions. Traditional segmented models separate design with programme management and supervision across multiple contracts . Each inter face introduces accountability boundaries and coordination exposure. As a consequence, integrated delivery structures consolidate responsibility. “You’re removing those interfaces between all the different contracts,” Bruce said. Interface reduction internalises coordination risk within a single contractual entity, reducing the potential for dispute-driven delays. Clear accountability streamlines adaptation, he added, “It all comes down to one individual party under one contract.” Under volatile fl eet deployment conditions, phasing may require recalibration, and systems integration may need to be reprioritised. Fewer contractual boundaries enable faster decision cycles and reduce the friction associated with mid- programme adjustments. “If set up correctly it reduces the opportunity for conflict. It makes it easier to streamline the process.” Governance discipline in an era of volatility Infrastructure exposure to fl eet instability cannot be eliminated. Aircraft production rates, geopolitical developments and route restrictions originate beyond airport control, yet they directly infl uence how capacity must be planned and delivered. What remains within control is the internal governance framework through which programmes are defi ned and executed. Clarity at inception anchors performance measurement and limits rework. As Bruce states, “Be clear on the baseline. Go slow to go fast at the beginning.” Time invested in defi nition reduces downstream instability and constrains reactive redesign when external conditions shift. Locked objectives then provide a consistent benchmark across volatile conditions. Bruce adds, “Once that’s been agreed and locked in, it can be used to measure success through your programme.” In an environment where airline operating patterns are fl uid, governance discipline and delivery integration determine whether capacity remains aligned with utilisation realities. Airlines plan their schedules only 6 to 18 months ahead. Airports tend to plan medium to major capacity enhancements for the next 10 to 15 years AVB_Apr2026_16-17_Interview_13872882.indd 1710/04/2026 12:0218 FEATURE | ADVANCE AIR MOBILITY APRIL – MAY 2026 As eVTOL aircraft approach certifi cation, the challenge for cities is shifting toward infrastructure capacity, regulatory integration and commercially viable operating models BUILDING THE URBAN AIR MOBILITY ECOSYSTEM Electric vertical take-off and landing aircraft (eVTOL) programmes have reached a stage where certifi cation pathways and urban deployment plans are beginning to intersect. Over the past decade, manufacturers have demonstrated the technical feasibility of distributed electric propulsion, autonomous fl ight control systems and vertical lift architectures. Several aircraft developers are now progressing through certification programmes overseen by authorities such as the Federal Aviation Administration and the European Union Aviation Safety Agency. Certifi cation alone does not establish a functioning transport market. Urban air mobility requires infrastructure capable of supporting frequent operations, regulatory frameworks governing low- altitude traffic, and operating models capable of generating commercial revenue. The interaction between these elements will determine whether electric vertical fl ight remains confi ned to demonstration programmes or evolves into a viable transport segment. The Middle East offers a useful setting for examining this transition. Several governments AVB_Apr2026_18-23_Feature Air Mobility_13870687.indd 1810/04/2026 12:0719 ADVANCE AIR MOBILITY | FEATURE APRIL – MAY 2026 The operational capacity of early vertiport networks also raises questions about the commercial model underpinning urban air mobility in the region have begun constructing the regulatory and infrastructure conditions required for early deployment. Among these initiatives, Dubai provides one of the clearest examples of how aircraft development, regulatory preparation and infrastructure investment can be coordinated within a single urban mobility strategy. Certifi cation momentum and market reality Manufacturers developing eVTOL aircraft have entered a phase in which regulatory approval will determine the pace of market entry. Several companies have completed thousands of test fl ights, validating propulsion systems, fl ight stability and energy management technologies. These programmes are now progressing through certifi cation processes designed to confi rm airworthiness, operational reliability and production consistency. Aircraft produced by companies including Joby Aviation and Archer Aviation are among the most advanced within the certifi cation pipeline. Both aircraft have completed extensive fl ight testing programmes while working through regulatory stages that assess propulsion redundancy, fl ight control systems and operational procedures for passenger transport. These certification efforts represent the fi nal technical barrier before limited commercial deployment becomes possible, shifting the industry’s central challenge from engineering development to operational implementation. Industry timelines suggest that several manufacturers are targeting commercial entry during the second half of the decade. Joby Aviation has stated that its aircraft is designed to carry four passengers and a pilot, with a cruise speed of approximately 200 mph (320 km/h) and an operational range of around 150 miles (240 km). Archer Aviation’s Midnight aircraft is also designed for four passengers plus pilot and optimised for short urban sectors of roughly 20–50 miles. These operating profi les indicate that early services will focus on short metropolitan connections, reinforcing the role of urban air mobility as a niche urban transport service rather than a regional aviation substitute. Middle East policy context Government participation has played a decisive role in accelerating advanced air mobility initiatives across the Middle East, largely because regulatory authority and infrastructure planning remain highly centralised in many Gulf states. Regional authorities have incorporated aerial mobility into broader transport and economic diversifi cation strategies. These initiatives frequently appear within programmes focused on urban innovation, digital infrastructure and tourism development. Centralised planning structures allow regulators, infrastructure developers and municipal authorities to coordinate projects involving airspace regulation, infrastructure development and urban planning. Several Gulf states are positioning themselves as early adopters of aerial mobility technologies. Demonstration fl ights, regulatory pilots and infrastructure partnerships are emerging as authorities support early deployment through regulatory experimentation and infrastructure planning. In many cities, aerial mobility is being considered as a complement to existing transport networks rather than a replacement for ground infrastructure. Early deployment strategies typically focus on connecting airports with commercial districts or tourism hubs, routes where time savings can justify Vertiport infrastructure determines the operational scale of aerial mobility AVB_Apr2026_18-23_Feature Air Mobility_13870687.indd 1910/04/2026 12:08Next >