Archer Aviation reports larger Q2 losses but moves forward with air taxi production

Expenses increased by 28% to $125.5 million over last year's second quarter, with much of this rise due to research and development and certification costs as operations expand in California and Georgia. Since no aircraft have been delivered yet, Archer remains pre-revenue.

The company described these results as typical for new entrants in capital-intensive industries like commercial aviation: "Losses before a consistent stream of revenue are common in the commercial aircraft industry." Management acknowledged that introducing an unproven technology poses challenges but stressed their confidence in delivering on targets.

The Midnight is designed as an all-electric vertical takeoff and landing (eVTOL) air taxi capable of carrying four passengers with a single pilot across distances up to 87 nautical miles at speeds up to 150 mph. Three Midnights are nearing final assembly while three more are earlier in production stages.

Hundreds of flight tests have already been completed, with plans to formally launch commercial service later in 2025—starting in Abu Dhabi before expanding into U.S. markets by 2026. Certification is reportedly near completion.

Key partnerships form part of Archer’s growth strategy: United Airlines has invested in Archer and placed orders for 200 Midnight aircraft for use on city-to-airport routes; Stellantis is providing manufacturing support; collaborations with local governments and airport authorities aim to develop infrastructure such as landing pads and charging stations needed for widespread eVTOL adoption.

"With significant financial backing and the Midnight nearing certification, Archer is not in the business of selling pipe dreams," management stated. "It has positioned itself as a first mover in what could become a multi-billion-dollar industry, confident in its combination of technological innovation, manufacturing scale, and strong partnerships."

Whether these efforts will secure long-term success remains uncertain as the market develops.