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Boeing Logs $280 Million Air Force One Charge, Pushes Program Losses Past $3 Billion

The expense reflects a 2018 fixed‑price deal that leaves Boeing on the hook for cost overruns, pressuring its defense margins and program schedule.

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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

  • Boeing disclosed Tuesday that it took a $280 million second‑quarter charge for the VC‑25B Air Force One conversions to fund extra production and certification resources.
  • The charge contributed to a $428 million Q2 net loss while revenue rose to $24.56 billion and the company generated $631 million in free cash flow, with full‑year cash‑flow guidance unchanged.
  • The presidential program was awarded under a $3.9 billion fixed‑price 2018 contract and has accumulated more than $3 billion in cumulative losses as wiring, security systems and other complex modifications drove rework and higher costs.
  • Work concentrated at Port San Antonio has been slowed by COVID disruptions, supplier and workforce shortages and security and quality problems, and Boeing now expects first delivery of the two VC‑25Bs in 2028 with the second in 2029.
  • Boeing is offsetting defense-unit strain by accelerating commercial production, moving toward 47 737 MAX jets per month and opening a fourth final assembly line, but regulators and watchdogs remain focused on certification and program risks.