PitchBook News - A new era in aviation?

For the near to medium term, the industry is focused on blending in sustainable aviation fuel (SAF), which is similar to biodiesel. The trouble with SAF is cost—it's more than 2x that of Jet A.

Fuel cost is significant for airlines and doubling it would destroy profitability or likely curtail demand if the increase was passed to customers.

Instead of focusing on fuels and power plants, however, new aircraft design may prove the more attractive path. The efficiency of the all-wing aircraft has been a dream of going back to the beginning of the aerospace industry, but stability and control issues plagued designers.

New materials and control systems have resolved some problems and a blended wing body (BWB), which extends lifting surfaces across the entire aircraft, promises sizable efficiency gains. Greater interior volume offers more space for passengers or cargo, potentially boosting revenue.

Industry incumbents have had BWB projects and prototypes percolating in R&D labs for decades, but recently a couple of startups have taken up the charge, attracted capital, and are aggressively scaling prototypes with plans to get planes in the air in a few short years.

With increased efficiency and revenue opportunities, BWB designs may be key to profitably achieving industry goals of net zero by 2050.

For further details, check out our free analyst note: Blended-Wing-Body Aircraft