Boeing announced Tuesday that it has incurred an additional $280 million loss on the program to develop two new Air Force One presidential aircraft, bringing the total cost overruns for the project to more than $3 billion. The company's CEO, Kelly Ortberg, stated during an earnings call that the additional charge is "disappointing" but emphasized the company's commitment to delivering the planes.
Ortberg attributed the latest financial setback to Boeing's decision to "add significant resources to support the build and test schedule" for the two military versions of the Boeing 747. This investment, he explained, is intended to "help mitigate potential risk during certification and flight test."
The contract President Trump signed with Boeing in 2018 for the two aircraft was valued at $3.9 billion. Under its terms, Boeing is responsible for all cost overruns. The company had previously reported $2.8 billion in cost overruns as of 2024, according to Aviation Week.
Originally, Boeing committed to delivering the first of the two new planes by December 2024. However, the Government Accountability Office noted in a recent report that the project is "almost 3 years behind its current baseline schedule." The company now anticipates delivering the first aircraft in mid-2028 and the second by mid-2029.
The U.S. currently operates two Boeing 747-200 jumbo jets for Air Force One, which have been in service since the 1990s. These aircraft must be equipped with advanced communications and defensive systems, contributing to the complexity and expense of the new builds.
Air Force One is the official air traffic designation for any U.S. Air Force aircraft carrying the president.