TriFan 600 Developer XTI Aerospace Raises $4 Million in Underwritten Offering, and More

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VTOL Aircraft Developer XTI Aerospace Secures $4 Million to Eliminate Debt and Bolster Working Capital

XTI Aerospace has announced the pricing of an underwritten public offering aimed at raising approximately $4 million in gross proceeds.

The offering consists of 2,941,200 shares of common stock (or pre-funded warrants) and warrants to purchase an additional 2,941,200 shares, all priced at $1.36 per share and warrant.

The company intends to use the proceeds for working capital and to fully repay its outstanding secured promissory notes, with the offering expected to close on March 31, 2025.

Key Points

• ThinkEquity is serving as the sole book-running manager for the offering

• The warrants will be immediately exercisable upon issuance with a five-year exercise period

• XTI faces significant financial challenges with a concerning current ratio of 0.46 and EBITDA of -$19.72 million

• The company's stock has declined 87.57% year-to-date, with its market capitalization at just $8.7 million

• XTI Aerospace is known for developing the TriFan 600, an innovative fixed-wing aircraft with vertical takeoff and landing capabilities

What It Means

This capital raise appears to be primarily defensive, focused on debt elimination rather than accelerating product development.

The offering structure and pricing suggest XTI is facing liquidity constraints, with the $4 million raise representing nearly half of its current market capitalization.

Without rapid progress toward profitability or securing strategic investment, the company may require additional dilutive financings to sustain operations.

Other Key Aviation Industry Updates for Today 👇

2. British Airways and Partners Resolve UK-US Route Cooperation Issues

Today, Britain's competition regulator announced that five airlines; British Airways, American Airlines, Iberia, Aer Lingus, and Finnair; have offered commitments to address antitrust concerns regarding their Atlantic Joint Business Agreement.

The airlines agreed to give competitors slots for take-off and landing at London airports on routes to/from Boston, Miami, and Chicago.

This agreement allows them to coordinate transatlantic flights and make joint decisions on pricing and schedules.

3. China's Big Three Airlines Report Improved Yet Persistent Losses

China's three largest state-owned airlines—Air China, China Southern, and China Eastern—recorded losses for the fifth consecutive year in 2024.

China Eastern reported a net loss of 4.2 billion yuan ($578 million), though this represents an improvement from 8.2 billion yuan in 2023.

The carriers cited intensified domestic competition, supply chain pressures, volatile oil prices, exchange rate fluctuations, and slower-than-expected international travel recovery, particularly on North American routes, as key challenges affecting their performance.

4. Federal Ruling Protects Aircraft Requiring 100LL Fuel at California Airports

The FAA ruled that Santa Clara County's 2022 ban on 100LL aviation fuel violated federal grant obligations.

The county, which received $6.8 million in federal funding between 1983-2011, must present a corrective action plan within 30 days.

The decision found that prohibiting 100LL while only offering unleaded alternatives discriminated against aircraft that cannot safely use these alternatives.

This ruling aligns with previous FAA positions that airports cannot ban FAA-authorized aviation fuels while maintaining grant compliance.

5. Air India Express Plans Fleet Expansion Amid Concerns of Market Oversupply

Air India Express stated today that increased capacity from Indian carriers will likely outpace demand in coming years, potentially lowering ticket prices.

The Tata Group-owned budget airline plans to grow capacity by 45% next year, aiming to carry 30 million passengers in 2025-26, up from 20 million this year.

The airline will add 15 aircraft, expand to 54 destinations, convert all seats to economy class by 2026-27, and enhance virtual interline partnerships with international low-cost carriers.

6. Canadian Airlines Slash Summer Capacity to US as Canadian Travelers Avoid US Destinations

Flight bookings from Canada to the US have plummeted by over 70% compared to last year, prompting airlines to cut 320,000 seats through October 2025.

The most significant reductions are occurring during peak summer months, with capacity down 3.5% in July and August.

This decline stems from ongoing US-Canada trade tensions.

In response, Canadian carriers like WestJet are redirecting flights to Europe, Mexico, and the Caribbean, as Canadians shift travel preferences away from American destinations.

7. FAA Launches Dual Strategy for Controller Staffing and Aircraft Safety

FAA Acting Administrator Chris Rocheleau announced plans to hire 2,000 air traffic controller trainees this year to address a 3,500-controller shortage.

The agency will also maintain strict oversight of Boeing following safety incidents, including the January 2024 Alaska Airlines door plug blowout.

Transportation Secretary Sean Duffy noted Boeing has lost public trust and the FAA continues to cap 737 MAX production at 38 planes monthly.

The FAA is also forming a committee to identify risks between helicopters and fixed-wing aircraft following a fatal January collision.

8. Cebu Pacific Welcomes First of Four A330neos Planned for 2025

Philippine low-cost carrier Cebu Pacific received its first aircraft delivery of 2025 today—an Airbus A330neo that arrived at Manila's Ninoy Aquino International Airport from Toulouse.

The 459-seat aircraft is the first of four A330neos scheduled to join the airline's fleet this year, with a total of seven aircraft deliveries expected in 2025.

The new aircraft enhances operational resilience while offering more affordable and sustainable air travel, as the NEO burns 15% less fuel than previous generations.

9. Joramco Strengthens South Asian Presence Through IndiGo Maintenance Deal

Joramco, the Amman-based MRO facility, signed a maintenance agreement with IndiGo yesterday at the MRO South Asia Summit 2025.

Under this partnership, Joramco will conduct heavy maintenance checks and end-of-lease services for IndiGo's Airbus aircraft, ensuring optimal fleet performance during the summer season.

CEO Fraser Currie noted this partnership highlights Joramco's global position and opens opportunities to expand operations in South Asia.

10. LOT Secures Two 787s from DP Aircraft Amid Global Widebody Shortage

LOT Polish Airlines signed a lease agreement for two Boeing 787-8 Dreamliners to be delivered in 2026 - a strategic move amid global wide-body aircraft shortages.

The 12-year operating lease with DP Aircraft will cost approximately $167.63 million.

Currently operated by Thai Airways, these aircraft will expand LOT's long-haul fleet to 17 Dreamliners.

CEO Michal Fijol also noted that results from a tender for 84 regional aircraft will be announced in the coming weeks.