Archer posts $116.5m loss in first quarter; maintains liquidity
Archer Aviation announced first quarter shareholder report declaring a loss of $116.5m in the quarter while sharing progress on the development of its electric vertical takeoff and landing (eVTOL) aircraft, Midnight.
The company flew more than 100 test flights in the first quarter and is on track to exceed its goal of 400 flights for the year. Midnight is nearing a critical milestone where it will take off vertically, transition to wing-borne flight, and then land vertically again. Archer then plans to fly the aircraft 10-15 times per day to simulate commercial use.
“The electrification of aviation continues to increasingly emerge into the mainstream every day. From the outset, we’ve been clear that our strategy is to keep the design of our first electric aircraft, Midnight, as simple as possible while delivering industry-leading performance balanced with safety,” said Adam Goldstein, CEO, Archer.
“We are accomplishing this by partnering with what we believe to be the best suppliers in the aerospace industry, rather than take on the cost and risk of vertically integrating every aspect of a novel aircraft program. This capital-light strategy continues to pay dividends that are more clear today than ever, as we continue to make rapid progress towards commercialising electric aviation.”
Archer burnt through $58.8m cash during Q1 2024, ending the quarter with $405.8m in cash and cash equivalents. However, the company’s overall liquid at the end of the quarter stood at $523m including $406m in cash and cash equivalents and an additional $117m in debt and equity proceeds available under various capital arrangements.
The company also announced a framework agreement with the Abu Dhabi Investment Office to develop commercial air taxi operations in the United Arab Emirates.
