Archer Aviation announced its third-quarter results and the signing of definitive agreements to acquire control of Hawthorne Airport in Los Angeles for $126 million in cash. The airport occupies an 80-acre site and features approximately 190,000 square feet of terminal, office, and hangar space. It is located less than three miles from LAX and close to major destinations, including SoFi Stadium, The Forum, Intuit Dome, and Downtown Los Angeles. Archer intends for Hawthorne Airport to become the operational center of its planned Los Angeles air taxi network and to serve as a testbed for AI-powered aviation technologies it is developing with airline and technology partners.
The company noted that the airport will also play a role in mobility planning for the LA28 Olympic Games. Archer expects to use the site to develop and demonstrate next-generation aviation capabilities, including AI-driven air traffic and ground operations management systems.
Archer also raised $650 million of additional equity capital, bringing its total liquidity to more than $2 billion. The company stated that this capital base reinforces its financial position as it scales its commercial and operational development efforts.
During the quarter, Archer reported several milestones in the test campaign of its piloted Midnight aircraft. These included a 55-mile flight completed in 31 minutes at speeds exceeding 126 miles per hour, as well as a flight that reached an altitude of 10,000 feet. Midnight also completed demonstration flights at the California International Airshow.
Archer closed its acquisition of Lilium’s portfolio of approximately 300 advanced air mobility patent assets for €18 million. This expansion increased Archer’s patent portfolio to more than 1,000 assets globally, encompassing electric engines, ducted fans, propellers, flight control, and high-voltage system technologies.
The company also continued its international expansion. Midnight aircraft were deployed for test and demonstration flights in Abu Dhabi, where Archer has begun receiving payments for its Launch Edition program activities. Progress continued toward in-country certification in the United Arab Emirates. Separately, Archer was selected as Korean Air’s exclusive air taxi partner in South Korea, and its aircraft were chosen for projects in both Osaka and Tokyo through a partnership with Japan Airlines and Sumitomo’s joint venture, Soracle. These agreements remain subject to final definitive documentation and other conditions.
Archer also reported total operating expenses of $174.8 million on a GAAP basis for the quarter and ended the period with $1.64 billion in cash, cash equivalents, and short-term investments. The company provided fourth quarter Adjusted EBITDA loss estimates of $110 million to $140 million, noting that certain non-cash valuation items cannot be reasonably predicted.
Support: Moelis & Company served as lead placement agent for the capital raise and financial advisor on the Hawthorne Airport acquisition, while Cantor Fitzgerald served as joint placement agent.
KEY QUOTES:
“Archer’s trajectory validates our conviction that eVTOLs are part of the next generation of air traffic technology that will fundamentally reshape aviation. Their vision for an AI-enabled operations platform isn’t just about eVTOLs, it’s also about leveraging cutting-edge technology to better enable moving people safely and efficiently in our most congested airspaces. Through United’s investment arm, United Airlines Ventures, we’re investing in companies like Archer that pioneer technologies that will define and support aviation infrastructure for decades to come.”
Michael Leskinen, Chief Financial Officer, United Airlines
“The era of advanced aviation has arrived—not as a distant vision, but as a tangible reality. At Archer, we are not waiting for the future; we are building it. The time to seize this transformative opportunity is now.”
Adam Goldstein, Founder and CEO, Archer Aviation
