Boeing takes $280 million hit on troubled Air Force One program
Boeing has recorded a $280 million charge on its programme to replace the US presidential Air Force One aircraft, contributing to a larger-than-expected quarterly loss. The setback highlights the financial and delivery risks Boeing faces on fixed-price government contracts while it works to improve its wider business performance.
The company is building two 747-8 aircraft under a $3.9 billion contract signed in 2018. The programme is about four years behind schedule and more than $1 billion over budget; Boeing said the latest charge was mainly due to additional production and certification resources.
- Boeing took a $280 million Air Force One programme charge.
- The replacement aircraft programme remains years behind schedule.
- Boeing is absorbing further costs under a fixed-price contract.
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