Overdue Air Force One Has Cost Boeing $2.8 Billion So Far - Forbes

What the report says

Forbes reported that Boeing recorded another $280 million charge in the second quarter tied to its contract to build the next generation of Air Force One presidential aircraft. The loss was disclosed in Boeing’s latest earnings report and adds to the financial strain from a program that Forbes described as years late and increasingly costly for the company.

The contract, awarded in 2018, calls for Boeing to deliver two heavily modified presidential jets for about $3.9 billion. Forbes noted that the deal was structured as a fixed-price agreement, meaning Boeing is responsible for much of any cost growth rather than the U.S. government. The first aircraft, originally expected in 2024, is now projected for delivery in 2028, according to the report.

Forbes cited Aviation Week’s estimate that Boeing has likely lost $2.8 billion on the Air Force One program since taking the contract. The article also reported that Boeing’s overall second-quarter net loss was $428 million, an improvement from a $612 million loss a year earlier, while commercial aircraft deliveries increased from 150 to 171 year over year.

The delays matter because Air Force One aircraft require extensive military and communications modifications beyond standard commercial jets, including secure global communications and defensive systems. Forbes said Boeing attributed the latest overrun to added production and certification resources, while company defense leadership has warned that further cost growth could occur as final assembly, wiring, structural work and certification continue.