Trump’s Air Force One deal has now cost Boeing more than $3 billion

Aerospace manufacturer Boeing has now incurred over $3 billion in losses on its fixed-price contract to develop the next generation of Air Force One presidential aircraft. The company recently announced an additional $280 million charge in the second quarter of 2026, pushing the total cost overruns past the $3 billion mark. These losses stem from the 2018 deal, which stipulated a set price for the highly customized VC-25B jets, leaving Boeing responsible for any expenses exceeding that amount.

The program, which involves modifying two Boeing 747-8 aircraft, has faced numerous challenges, including design complexities, workforce issues, and supply chain disruptions. Originally slated for delivery in 2024, the planes are now anticipated to be completed in 2028, a four-year delay. Boeing attributes the latest financial hit to investments in additional production and certification resources, aiming to keep the project on its revised schedule.

The significant cost overruns have made the Air Force One contract a notable example of the risks associated with fixed-price government agreements, particularly for highly intricate projects. Despite the financial setbacks on this specific program, Boeing reported a wider-than-expected net loss of $428 million for the second quarter of 2026, though its overall revenue increased due to a rise in commercial airplane deliveries.