Boeing's troubled effort to build two new Air Force One jets cost the defense giant another $280 million in the second quarter of 2026, according to its latest earnings report. The program, now running four years behind schedule, has accumulated more than $3.1 billion in cost overruns that Boeing is absorbing.
The company signed a fixed-price contract with the U.S. government during President Trump's first term to produce militarized versions of the Boeing 747. Originally slated for delivery in 2024, the aircraft are now expected to arrive no earlier than 2028. The deal, initially capped at $3.9 billion to protect taxpayers, has been revised to roughly $4.5 billion.
Boeing CEO Kelly Ortberg told employees in an internal email that the company is pouring "significant resources" into meeting the 2028 deadline, as reported by CNN. The $280 million in additional costs stem from production and certification expenses incurred in the three months ending June 30.
The program's financial woes continue to mount as Boeing grapples with supply chain disruptions, engineering changes, and regulatory hurdles. The company posted a total second-quarter loss of $428 million, adding to a $7 million loss in the first quarter of 2026.
The saga has drawn renewed political scrutiny. Trump last year floated using a Qatari-gifted jet as an interim Air Force One, but that plan encountered its own cost overruns and security concerns. The Qatari aircraft lacked certain safety features, forcing Trump to fly into Turkey for a NATO summit on the new plane but depart on the old one. The Secret Service reportedly urged Trump to switch aircraft over fears it wasn't fully equipped to handle threats.
Retrofitting the Qatari jet required hundreds of millions of dollars for new power systems, electrical wiring, and secure communications technology. Senator Fischer recently blocked a bid by Schumer to halt taxpayer funds for that project, highlighting the ongoing partisan friction over the program's costs.
Boeing's losses on Air Force One underscore broader challenges in defense contracting, where fixed-price deals can expose companies to massive financial risk when projects run long. The program's delays also raise questions about the reliability of the presidential fleet as global tensions escalate, particularly amid Rubio's warning that Trump may use disproportionate force against Iran.
As Boeing works to stabilize its commercial and defense portfolios, the Air Force One program remains a glaring symbol of operational missteps and financial exposure. For now, the company is betting that increased resources and management focus can finally get the iconic aircraft flying by 2028.
