A hovercraft operates by using a lift motor to create higher pressure inside the hull than the surrounding atmospheric pressure, which generates lift. This reduces friction between the hull and the surface below, allowing forward motion with only a small amount of thrust provided by a separate thrust motor. Key components include the flexible skirt around the hull edge to guide the air cushion, and directional control systems like rudders controlled by servo motors. Hovercrafts can be used for transportation or military purposes by distributing weight evenly and controlling dynamics through principles of lift, thrust, torque and efficiency.