Air Force One Replacement Programme Hits Another Costly Snag for Boeing
The Air Force One replacement programme has hit Boeing with another financial setback, adding $280 million to the company's Q2 losses. The total cost overrun on the fixed-price contract now stands at over $3.1 billion. The two VC-25B aircraft, being converted from Boeing 747-8i airframes, were originally scheduled for delivery in 2024 but will now enter service in 2028.
The programme's escalating costs have added pressure on Boeing's defence operations, which have already faced challenges across several fixed-price contracts. The Air Force One losses contributed to a $428 million net loss for the second quarter of 2026, following a $7 million loss in the first quarter.
Boeing president and CEO Kelly Ortberg said the company is committing 'significant resources' to accelerate work and meet the government's revised delivery target. The aircraft will feature advanced communications, defensive systems, and specialised presidential mission equipment, but unlike the current VC-25A Air Force One aircraft, they will not include an in-flight refuelling capability.
The US government acquired two airframes originally built for Russian airline Transaero as a potential cost-saving measure. However, the extent of any savings has been questioned given the extensive modifications required to transform commercial aircraft into highly secure presidential transports.