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3w ago

Boeing Logs $280 Million Air Force One Charge as Q2 Loss Narrows

Because the VC-25B work is under a fixed‑price 2018 contract, Boeing is absorbing rising engineering and certification costs that are denting defense results even as commercial cash flow improves.

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A proposed model of the new Boeing Air Force One, on a table in the Oval Office.
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Overview

  • On July 28 Boeing reported a second‑quarter net loss of $428 million that included a $280 million charge tied to the VC‑25B Air Force One replacement program.
  • The company said the $280 million covered added production and certification resources needed to pursue first delivery in 2028 under the $3.9 billion fixed‑price contract it signed in 2018.
  • Cumulative overruns on the Air Force One work have now passed roughly $3 billion and pushed Boeing’s Defense, Space & Security segment into an operating loss for the quarter.
  • Commercial operations showed recovery with revenue up 8%, commercial deliveries rising 14% to 171 planes, and free cash flow turning positive at $631 million while Boeing advances a 737 MAX ramp toward 47 jets per month.
  • Regulators and watchdogs remain active with the FAA proposing inspections of hundreds of U.S. 737 MAX jets over seat installations and government oversight flagging certification and wiring risks that could trigger further costs or delays.