Boeing reports $3 billion in Air Force One cost overruns, posts additional $280 mln loss

Published Jul 28, 06:03 PM UTC

Boeing announced a fresh $280 million loss on the VC-25B Air Force One program during its quarterly earnings call, bringing total out-of-pocket costs to over $3 billion. The company is investing additional resources to keep the first fully-equipped presidential jet on track for delivery in 2028, years behind the original December 2024 target. The program operates under a firm fixed-price contract, forcing Boeing to absorb the overruns. The U.S. Air Force has also added funding, including a $15.5 million contract modification for communications work. The Government Accountability Office reported total acquisition costs rose from $6.263 billion to $6.608 billion. Issues include stress corrosion cracks affecting 747-8s globally, certification changes from FAA to military standards, and outdated technologies requiring upgrades. The second aircraft is expected in mid-2029.