Boeing Reports Financial Setback on Air Force One Project
On a recent earnings call, Boeing revealed it has faced a significant financial challenge while working on two new Air Force One jets.
The company announced an additional loss of $280 million tied to ongoing delays, pushing total cost overruns past the $3 billion mark.
Boeing’s CEO, Kelly Ortberg, expressed disappointment over these charges but emphasized that they recognize the importance of meeting delivery schedules. “We are investing accordingly to ensure we can deliver the aircraft by 2028,” he stated during the call.
Ortberg attributed the losses to the decision to allocate more resources to support the manufacturing and testing schedule of the military variants of the Boeing 747. He believes this will mitigate risks during certification and flight testing.
According to a $3.9 billion contract signed by President Trump in 2018, Boeing is accountable for any cost overruns related to this project.
Previously, it was reported that the company had already incurred $2.8 billion in cost overruns, as per information released earlier this year.
Boeing initially aimed to deliver the first of the new jets by December 2024, but the Government Accountability Office recently indicated that the company is nearly three years behind schedule. Current expectations have shifted, with the first aircraft now slated for delivery in “mid-2028” and the second by “mid-2029.”
At present, the U.S. relies on two older Boeing 747-200 jets for presidential travel, both of which have been in service since the 1990s.
Additionally, President Trump has reportedly used a $400 million luxury jet provided by Qatar, which he has dubbed his “palace in the sky.” However, this jet was grounded recently in order to enhance its anti-missile defenses.
The jets designated as Air Force One necessitate advanced communication and defense systems, complicating their development and driving up costs. Throughout this process, President Trump has voiced concerns about the delays and cost overruns associated with Boeing’s work on the new aircraft.
The White House has yet to offer a comment on the situation.
