Kelly Ortberg reports Boeing's Air Force One project costs $280 million more in second quarter as company targets 2028 delivery.
Boeing President and CEO Kelly Ortberg announced that the company is investing an additional $280 million in the Air Force One program to ensure the delivery of the first of two new 747-8 jets by 2028. The project, which was partially brokered by President Trump during his first term, has seen significant cost overruns, with the total price tag now reaching approximately $4.5 billion. While the company reported a net loss of $428 million for the second quarter, revenue increased by 8% to $24.56 billion. The Air Force One project has faced delays due to engineering design changes, pandemic-related inefficiencies, and subcontractor issues. To mitigate these risks, the administration announced that the Air Force would convert a donated Qatari 747 jet into a temporary Air Force One, though President Trump acknowledged that the gift lacks the security features of the future contracted aircraft. Ortberg stated that the company is focusing on safety, quality, and on-time performance to restore trust and move the manufacturer in the right direction.