2026’s Defining Aerospace and Defense Moments

2026 was a year of momentum for aerospace and defense. Long-awaited aircraft cleared certification, major programs moved into production, and investment in autonomy and space kept climbing, all while growing demand tested the industry’s capacity.

Here’s a look back at the moments that defined the year, and the open questions to watch in 2027.

Commercial and Business Aviation: Certification Wins and Industry Shakeups

The Federal Aviation Administration (FAA) completed certification of the Boeing 737 MAX family this year. The MAX 7 was certified in August, ending a nearly decade-long effort, and the larger MAX 10 followed in late October after a newly disclosed software issue briefly put its approval in question. The MAX 10 is the first commercial aircraft certified to the full extent of the 2020 Aircraft Certification, Safety, and Accountability Act, which added requirements for safety assessments and human factors evaluations. It also introduces an enhanced angle-of-attack system that will become standard across the MAX family.

The only all-new business jet to fly this year, Dassault’s Falcon 10X made its first flight in June, starting a two-year certification program. The clean-sheet jet, the largest Dassault has built, pairs a new composite wing and Rolls-Royce engines with an expanded fly-by-wire system.

The FAA’s overhaul of the nation’s air traffic control (ATC) system picked up speed this year. Backed by an initial $12.5 billion from Congress, the Brand New Air Traffic Control System (BNATCS) effort aims to replace decades-old communications, radar, and tracking infrastructure by 2028. As of September, 64% of the old copper wiring has been replaced with fiber. The next phase focuses on new automation software, and the FAA is seeking at least $10 billion more to fund it.

The low-cost airline sector saw its biggest shakeup in years. Spirit Airlines shut down in May after 34 years, canceling all flights when talks on a $500 million federal bailout failed. Two bankruptcies since 2024 had already weakened the carrier, and rising jet fuel prices tied to the Iran conflict proved to be the final blow. Less than two weeks later, Allegiant closed its $1.5 billion acquisition of Sun Country, creating a combined airline with about 195 aircraft serving nearly 175 cities.

Advanced Air Mobility: The Race to Certification

The race to certify the first U.S. electric vertical takeoff and landing (eVTOL) aircraft tightened this year, as Archer and Joby traded milestones. Archer moved into the final phase of FAA certification for its Midnight aircraft after the FAA accepted 100% of its means of compliance, and it is now testing components against those agreed-upon standards. Joby reported its strongest quarterly progress yet in the fifth and final stage of certification, with five aircraft flying and 12 more in production. They are the only two U.S. developers to reach this point, but neither holds a type certificate yet. Globally, only China’s EHang has received one.

The eVTOL Integration Pilot Program (eIPP), created by a 2025 White House executive order, selected eight projects across 26 states in March 2026, and flights began this fall. It marks the sector’s shift from test ranges to real operations: aircraft can now fly in U.S. airspace alongside regular commercial traffic before type certification, and the FAA will use the data to write the rules for commercial service.

A big business move came in August, when Archer agreed to acquire Boeing’s Wisk Aero, along with drone maker Insitu and airspace management company SkyGrid. Wisk brings six generations of eVTOL designs and more than 1,700 test flights. Boeing will take a nearly 20% stake in Archer and retain access to Wisk’s autonomous flight technology for its own aircraft. The deal is expected to close by year-end, pending regulatory approvals.

Defense: Speed, Scale, and New Capabilities

Golden Dome, the nation’s next-generation missile defense initiative, moved from concept to contracts in 2026. Backed by billions in new funding from Congress, the program produced several major awards this year. In April, the Space Force awarded up to $3.2 billion to 12 companies to prototype space-based interceptors, and by September, L3Harris had moved 18 missile-tracking satellites into production. Cost remains the biggest open question, though Gen. Michael Guetlein has told the Senate that an early version could be operating by 2028 by building on existing radars, interceptors, and command systems.

Autonomy also became an organizational priority. In September, Defense Secretary Pete Hegseth announced the Autonomous Warfare Command (AutoWarCom), a new four-star combatant command built to scale autonomous and robotic capabilities across the joint force. Its portfolio covers drones, artificial intelligence (AI), and command and control (C2). An interim effort called Project Agincourt will lay the groundwork ahead of a target start date of October 1, 2027, pending approval from Congress. It would be the first new combatant command since U.S. Space Command in 2019, and a clear signal that the Pentagon sees autonomy as central to future operations rather than a niche capability.

Heavy use of interceptors and missiles this year put production capacity at the center of defense planning. In August, the Pentagon formally urged industry to identify ways to accelerate weapons production, building on agreements already in place with major suppliers. Lockheed Martin agreed to a framework to raise THAAD interceptor production from about 96 to 400 a year, and Raytheon reached agreements to boost AMRAAM output to at least 1,900 missiles a year, followed in September by a $20.7 billion AMRAAM contract. Even so, experts expect it will take years to fully rebuild inventories.

In military aviation, the Navy selected Boeing for the F/A-XX, a contract worth more than $20 billion. Combined with last year’s F-47 award, Boeing now holds both of the nation’s crewed sixth-generation fighter programs.

The way defense software gets built is changing, too. In September, the Pentagon formally embraced AI in software development with Instruction 8430.01, “Accelerated Mission Software,” which sets out how programs can use it. The guidance encourages programs to use AI to speed up delivery, but requires teams to record which models, versions, and datasets were used to generate or test code, and to include that record in the software evidence package.

Space: Big Wins and Hard Lessons

In April, Artemis II flew four astronauts around the Moon, the first crewed lunar mission in more than 50 years. Weeks earlier, NASA cancelled the Lunar Gateway in favor of a $20 billion base on the lunar surface, reshaping billions of dollars in contracts.

Commercial space had its biggest financial moment yet. SpaceX completed the largest IPO in history in June, raising $75 billion.

Not every milestone went to plan. In May, Blue Origin’s New Glenn rocket exploded during a static fire test at Cape Canaveral, destroying the vehicle and heavily damaging the company’s only operational New Glenn launch pad. The company has traced the cause to an oxygen valve, but the loss put its launch schedule on hold, including planned launches for Amazon’s Leo satellite internet constellation.

Looking Ahead to 2027

Many of this year’s biggest developments set up even bigger decisions in 2027. Here’s what to keep an eye on:

• ATC modernization funding: Whether Congress funds the software-focused next phase of the FAA’s air traffic control overhaul.
• The first U.S. eVTOL type certificate: Which company gets there first, and when passenger service begins.
• Golden Dome funding and architecture: Whether Congress funds the program in a full-year FY27 budget, and whether the 2028 early-capability target holds.
• The Autonomous Warfare Command: How the command takes shape ahead of its October 2027 target start date.
• AI in mission software: How Instruction 8430.01 plays out on real programs.
• Artemis III and NASA’s lunar base: How NASA moves toward its next crewed Moon mission and a lunar surface base after canceling the Gateway.

2027 will show how well the industry can scale to meet growing demand, with budgets, certification timelines, and production capacity all put to the test.

Meeting those challenges will require the right balance of speed, expertise, and execution. With nearly three decades of experience and a team of world-class engineers, Performance Software helps organizations deliver complex programs with confidence. Contact our team today.