Boeing's Air Force One Deal Turns into Billion-Dollar Nightmare
Boeing's deal for two Air Force One planes has turned into a billion-dollar nightmare. The company is writing off $280 million in the second quarter, four years behind schedule and over a billion dollars above budget.
The contract for Donald Trump's presidential plane was signed in 2018 for $3.9 billion at a fixed price. However, government changes during Trump's first term led to massive delays. The planes are now expected to be delivered in 2028.
Trump has been flying on a 747-8 provided by Qatar as a diplomatic solution with a bitter taste for Boeing. Despite the Air Force One disaster, Boeing saw an eight percent increase in sales to $24.6 billion and turned its free cash flow positive at $631 million.
The company aims for a free cash flow between one and three billion dollars this year, the first positive result since 2023. However, the Air Force One contract serves as a cautionary tale about the risks of fixed-price contracts for complex projects under political pressure.