Boeing Reports Massive Loss on New Air Force One Presidential Jets

Boeing’s defense division is facing headwinds due to high manufacturing costs, supplier errors, and fixed-price contracts that increase its risk to cost overruns on projects like the forthcoming Air Force One and NASA’s Starliner capsule.

Boeing witnessed a huge loss building new Air Force One presidential jets as supplier costs soar. Boeing continues to take on massive losses thanks to its contract to furnish two of its 747-8I converted passenger jets. The company revealed it would lose another $482 million on the contract.

Boeing has already lost more than a billion dollars on each of the planes, and company CEO Dave Calhoun has since admitted it was probably a mistake to make the deal, saying just last year that “Air Force One, I’m just going to call a very unique moment, a very unique negotiation. A very unique set of risks that Boeing probably shouldn’t have taken. But we are where we are.”

According to Boeing, the latest round of losses stem from engineering changes, supplier negotiations, and an unstable labor force.

Boeing has reported losses in all but two quarters since 2019. It has lost more than $25 billion since two fatal crashes involving its 737 Max jet grounded the entire fleet for almost two years.

boeing.com