Boeing reports another huge loss on Air Force One program – By Audrey Decker (DefenseOne) / Oct 25, 2023
Boeing has eaten more than $2.4 billion in losses on the program, according to a company spokesperson.
Boeing lost almost half a billion dollars building new Air Force One presidential jets in the third quarter of 2023, as fixed-price contracts continue to hurt the company.
The $482 million loss on the high-profile presidential plane was due to “higher estimated manufacturing costs related to engineering changes, labor instability and the resolution of supplier negotiations,” Boeing Chief Financial Officer Brian West said during the company’s third-quarter earnings call Wednesday.
Boeing has faced numerous problems with the VC-25B program, including shortages of workers and parts, that have delayed delivery of the first of two Air Force One jets until 2027. To date, the company has lost over $2.4 billion on the program, according to a company spokesperson. CEO Dave Calhoun said last year that Boeing should have never agreed to the fixed $3.9 billion price tag.
