International Airlines Group (IAG) and Alaska Airlines have backed a US$19 million Series B funding round for Ampaire, a startup in hybrid-electric auxiliary power units (APUs).
APUs keep aircraft systems running while planes are on the ground. However, most burn fuel. Ampaire will work with IAG to develop new technology for APU retrofits that will combine conventional engine power with electricity.
IAG’s investment came from the group’s startup arm, IAGi Ventures. Ampaire were previousy part of IAGi’s 2025 Accelerator, its flagship open innovation programme.
Raza Ali, Managing Partner, IAGi Ventures, said:
Since Ampaire joined our innovation programme last year, we have been impressed by both the scale of its operations and the potential of its technology. What excites us most is its practical approach to reducing aviation emissions and we look forward to exploring how hybrid-electric APU solutions could be fitted to aircraft already in service today to reduce aircraft fuel consumption on the ground.
IAGi also recently invested in MAKO, a startup producing sharkskin-inspired ‘Flightfilm’ that can be applied to an aircraft to reduce fuel burn. The question of fuel has become a dominant concern in the industry, as ongoing conflict in the Middle East continues to push prices higher. Initiatives that can reduce fuel consumption are in high demand, both to reduce airlines’ cost and improve overall sustainability.
Alaska Airlines, on the other hand, have partnered with venture incubator UP.Labs to launch three AI startups in a single year.
Kevin Noertker, co-founder and CEO of Ampaire, said:
This financing is about turning proven hybrid-electric performance into commercialised products and scaled operations. We have consistently demonstrated the technology in flight; this capital accelerates our deployment with customers, and expands our supply chain, manufacturing and operating capabilities required to reach commercial scale.
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