How Does Archer Aviation Plan to Make its Money?
Archer Aviation is a pre-revenue electric vertical takeoff and landing (eVTOL) aircraft company developing the Midnight — an all-electric air taxi designed to carry four passengers plus a pilot on trips of up to 60 miles. The company aims to launch commercial air taxi services in major cities, offering short urban flights (think: airport to downtown) that take minutes instead of hours spent in traffic.
Archer is pre-revenue as of 2024. The company is in the late stages of FAA certification for the Midnight aircraft and building its manufacturing facility in Covington, Georgia. Archer plans to generate revenue through two channels: operating its own air taxi network (similar to how Uber operates ride-hailing) and selling Midnight aircraft to other operators (including a major deal with United Airlines).
This is a pre-revenue company — the financial data below reflects Archer’s development-stage economics. The company is burning cash as it works toward commercialization.
Planned Revenue Model
| Revenue Stream | Description | Status |
|---|---|---|
| Air Taxi Operations | Operating Archer-owned Midnight aircraft in urban markets, selling flights to consumers | Pre-launch |
| Aircraft Sales | Selling Midnight aircraft to third-party operators (airlines, charter companies) | Backlog: $6B+ |
| Aftermarket Services | Maintenance, spare parts, and software updates for deployed aircraft | Future |
| Defense & Government | Military/government applications of eVTOL technology | Early contracts |
United Airlines Partnership
Archer’s most significant commercial partnership. United Airlines has committed to purchasing up to $1.5 billion worth of Midnight aircraft (200+ units) for use in United’s urban air mobility network. United has also invested directly in Archer. The partnership would see Midnight aircraft operating routes like Newark Airport to Manhattan or LAX to downtown Los Angeles.
Additional Orderbook
Beyond United Airlines, Archer has secured letters of intent and pre-orders from various operators totaling a backlog of over $6 billion. However, these are largely conditional on FAA certification and production scale-up.
Income Statement Overview (Development Stage)
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenue | $0 | $0 |
| R&D Expense | $350M | $290M |
| G&A Expense | $95M | $80M |
| Operating Loss | -$445M | -$370M |
| Net Loss | -$475M | -$400M |
Key Financial Metrics
- Revenue: $0 — Archer is pre-revenue. All financial activity is investment in aircraft development, testing, certification, and manufacturing buildout.
- Cash Position: ~$700M — Archer has raised capital through its SPAC merger, follow-on equity offerings, and a $400M+ commitment from Stellantis (which is providing manufacturing expertise and investment). The cash runway depends on the pace of spending and the timing of certification/production.
- R&D Spending: ~$350M — The majority of cash goes toward aircraft development, flight testing, FAA certification, and battery technology advancement.
- $6B+ Backlog — Conditional order backlog. The conversion of this backlog to real revenue depends entirely on achieving FAA certification and beginning production.
- Headcount: ~1,100 — Primarily engineers, test pilots, and manufacturing specialists.
What to Watch
- FAA Type Certification — The single most important milestone. Without FAA certification, Archer cannot operate commercially in the U.S. The certification process for a novel aircraft category is complex and timelines have historically slipped in aerospace.
- Manufacturing ramp — Archer’s Covington, Georgia manufacturing facility must scale from prototype production to hundreds of aircraft per year. Stellantis is providing automotive manufacturing expertise to support this, but scaling aerospace production is inherently challenging.
- Cash runway — As a pre-revenue company burning ~$400M+ annually, Archer needs sufficient capital to reach commercial operations. Any delays in certification or production could require additional fundraising, diluting shareholders.
- Battery technology — The Midnight’s range, payload, and economics depend on battery energy density. Improvements in battery technology would extend range and reduce per-flight costs. Current battery limitations cap the aircraft at ~60-mile range.
- Regulatory and infrastructure — Beyond FAA aircraft certification, Archer needs vertiport infrastructure (takeoff/landing pads) in cities, air traffic management integration, and operational approval. Building this urban aviation ecosystem is a multi-stakeholder challenge.
- Market demand and pricing — The key economic question: will enough consumers pay a premium for short urban air taxi flights? Archer needs to achieve price points competitive with premium ground transportation (black cars, helicopters) to generate mass-market demand.