Archer Aviation says it has become the first eVTOL maker to close Phase 3 of the Federal Aviation Administration’s four-phase Type Certification process for its Midnight air taxi, a milestone that moves the program into formal FAA testing. The company paired the technical win with some sobering math, reporting a first-quarter net loss of $217.7 million as it ramps up flight testing and prepares for limited U.S. operations.
The update came in a shareholder letter and press release, which said the close of Phase 3 lets FAA personnel start riding on certification flights and clears the way for Phase 4 testing. CEO Adam Goldstein still called it “another banner quarter” as Archer expanded piloted flights and network planning, according to Business Wire.
Archer has also been tapped as the Official Air Taxi Provider for the 2028 Los Angeles Olympic and Paralympic Games, a high-visibility showcase for its Midnight aircraft, organizer LA28 announced. The Silicon Valley Business Journal reports Archer was additionally selected as a partner in three winning pilot projects across eight states, signaling a push to build regional networks beyond Los Angeles, according to the Silicon Valley Business Journal.
What Phase 3 Actually Means
Closing Phase 3 is a major regulatory step, but it is not a green light to start hauling passengers just yet. It unlocks Type Inspection Authorization, which allows FAA inspectors to observe certification flights that count toward proving the aircraft is airworthy. Industry analysts note that Phase 4, where the aircraft must demonstrate compliance through formal testing and a mountain of documentation, is the heavier technical and paperwork lift and the stage that will really dictate how quickly commercial operations can start, according to Airways.
Money And The Certification Bill
The price tag for that certification race is showing up clearly in Archer’s numbers. Revenue for the quarter came in at $1.6 million, while total operating expenses climbed to $256.2 million, resulting in a GAAP net loss of $217.7 million. Archer said research and development spending reached $171.7 million, and the company ended the quarter with roughly $1.78 billion in cash, cash equivalents and short-term investments, figures laid out in its shareholder materials and press release, according to Business Wire.
Local Footprint And Partnerships
Archer is headquartered in the Bay Area and keeps flight-test and manufacturing work in the region while developing Hawthorne as a Los Angeles hub for initial operations, tying Silicon Valley engineering to a Southern California vertiport strategy. The company is also leaning on partnerships with technology and defense firms to speed autonomy, connectivity and on-board computing, a set of relationships investors are watching closely as certification and early commercial moves play out, per SEC filings.
What’s Next: Phase 4 And The Road To Flights
Archer says it is already working through Phase 4, where Midnight has to prove compliance through formal FAA testing, and it continues to describe initial U.S. operations this year under the White House’s eVTOL Integration Pilot Program as dependent on how that process plays out, according to Airways. The company also guided to an adjusted-EBITDA loss for the second quarter of about $170 million to $200 million, a projection republished with its results by Nasdaq, and watchdogs note that the timing of certification and ongoing cash burn remain the dominant near-term risks.
