An aircraft includes a fuselage; a propulsion system including a power source and a vertical thrust electric fan driven by the power source; and a wing extending from the fuselage. The vertical thrust electric fan is positioned on or within the wing, the wing including a diffusion assembly movable between a first position and a second position and positioned at least partially downstream of the vertical thrust electric fan when in the second position, the diffusion assembly including a first member and a second member, the second member movable generally along the vertical direction relative to the first member such that the first member and second member together define at least in part an exhaust flowpath for the first vertical thrust electric fan when the diffusion assembly is in the second position.