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Boeing’s contract to replace two aging Air Force One planes, a program that is now four years behind schedule, lost the defense contractor $280 million in the second quarter of 2026, according to its latest earnings report released on Tuesday.
The company inked a contract with the U.S. government in President Trump’s first term to produce two military versions of the Boeing 747. The original delivery of the aircraft was set for 2024 but has since been delayed until at least 2028, with billions of dollars in cost overruns for Boeing.
In an internal email sent to Boeing employees on Tuesday, CEO Kelly Ortberg wrote that the contractor is adding “significant resources” to deliver the aircraft by 2028, CNN reported.
Production and certification expenses created the $280 million in extra costs in the three months ending in June, according to Boeing.
The program’s total cost overruns are currently more than $3.1 billion, with Boeing footing the bill, according to the outlet.
The report marks another case of a ballooning price tag in the saga to retrofit the two Boeing 747s, which began in 2018 after Trump pushed then-CEO Dave Calhoun to sign a contract that capped the cost to American taxpayers at $3.9 billion. The deal that has since been modified to roughly $4.5 billion.
Trump last year pointed to the delayed timeline in arguing a Qatari-gifted jet could serve as an interim plane. But that effort has come with its own cost overruns and headaches, including a lack of certain safety features that forced Trump to fly into Turkey for a NATO summit on the new aircraft but out on the old Air Force One. The Secret Service reportedly pressed Trump to switch planes over fears it was not fully equipped to handle security threats.
The Qatari aircraft also required hundreds of millions of dollars to retrofit with new power systems, electrical wiring and other technology for secure communications and self-defense.
Boeing’s total second quarter loss was $428 million, adding to a $7 million loss in the first quarter.
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