Lilium Aerospace, a German air taxi developer, has filed for insolvency for the second time, citing funding difficulties. The company announced it would cease operations, with restructuring unlikely.

Based in Bavaria, Lilium previously entered administration in October 2024 and expressed regret over the decision, thanking employees for their dedication.

Lilium has been developing electric vertical take-off and landing (eVTOL) jets to promote eco-friendly urban air mobility.

However, financial struggles in the eVTOL market have impacted multiple companies.

Volocopter filed for bankruptcy in December 2024, while Vertical Aerospace sought emergency funding. Rolls-Royce also exited the sector to focus on more profitable ventures.

The insolvency raises doubts about Lilium’s agreements, including a deal with Saudia Group to supply up to 100 eVTOL jets.

Saudia signed a binding agreement in July 2024 for 50 jets, with an option for 50 more, expecting deliveries by 2026.

Lilium has not disclosed its next steps.