Boeing absorbs another $280m. hit on delayed Air Force One program

ByUDI ETZIONJULY 29, 2026 18:03Updated: JULY 29, 2026 18:12The cost of the next Air Force One program for the US president has risen by another $280 million, increasing Boeing's total losses on the project to $3.08 billion, the US aerospace giant reported in its second-quarter earnings report.The pair of VC-25A aircraft currently serving as President Donald Trump's Air Force One fleet are now more than 30 years old. Boeing signed a fixed-price $3.9 billion contract to supply the US Air Force with two new aircraft based on the 747-8, the final version of the iconic jumbo jet, whose production ended in 2023. To reduce costs and accelerate the schedule, the company purchased two secondhand aircraft and began converting them for presidential use.Instead, the program has turned into both a financial and public relations disaster for Boeing. The prestige of building the aircraft that carries the president of the United States led the company to accept a fixed-price contract, leaving it responsible for all additional costs.The project consists of two identical aircraft, with the first originally scheduled for delivery in 2024. However, repeated configuration changes, extensive electrical rewiring, corrosion discovered in the aircraft structures, a known issue affecting the 747-8 fleet, and technological upgrades required because of the project's prolonged timeline and the obsolescence of some onboard systems have resulted in major cost overruns and years of delay.Air Force One sits on the tarmac as US President Donald Trump returns from a trip to Michigan at Joint Base Andrews, Maryland. July 27, 2026. (credit: Andrew Harnik/Getty Images)Boeing has been forced to rapidly recruit senior engineers and mechanics while paying exceptionally high salaries to employees holding the highest levels of security clearance, a mandatory requirement for working on what is considered the world's most secure aircraft.During the last quarter, Boeing further increased its investment in the project by adding personnel and resources to meet the revised schedule, which calls for delivery of the first aircraft in 2028 and the second a year later.Among the latest modifications is the installation of a new classified communications system that will allow the president to conduct secure conversations from the aircraft with senior US government and military officials.The program is expected to cost $6.9 billionThe program is now expected to cost approximately $6.9 billion in total. Because Boeing failed to ensure compensation for future design changes and upgrades and underestimated the scope of the work required, the company will absorb the difference between what it receives from the US government and the project's full cost.Because the current Air Force One aircraft are aging, Trump advanced the acquisition of a Boeing 747-8 that had previously served Qatar's royal family as a temporary solution.After several months of modifications, Trump flew aboard the aircraft only a handful of times. However, after arriving in Turkey aboard the jet, he departed on one of the older Air Force One aircraft, which had been dispatched to the country because the temporary aircraft lacked the defensive systems installed on the existing presidential fleet. US authorities had also received a warning that Iran might attempt to assassinate Trump as he departed Turkey.Israel's 'Wing of Zion' aircraftIn that respect, the Air Force One project bears similarities to Israel's "Wing of Zion" prime ministerial aircraft. In Israel, Israel Aerospace Industries defeated Elbit Systems in the tender to acquire and convert a used Boeing 767 into the Israeli equivalent of Air Force One. That project also exceeded both its original budget and schedule.Earlier this week, Yedioth Ahronoth reported that, according to figures from the Prime Minister's Office, purchasing and converting the aircraft cost NIS 325 million.In addition, between 2023 and 2025 Israeli taxpayers spent NIS 60 million solely on operating the aircraft. Operating costs totaled NIS 34.18 million in 2024, then declined to NIS 18.67 million in 2025.The apparent reason was the sharp reduction in Prime Minister Benjamin Netanyahu's overseas travel following the issuance of international arrest warrants against him. As a result, the aircraft remained grounded for much of the time while the state continued to pay its flight and ground crews and to cover ongoing training costs.The Prime Minister's Office refused to disclose the cost of individual flights, including fuel, security, catering, and crew expenses, or the aircraft's insurance costs, arguing that releasing the information "could harm state security."Although the acquisition of Wing of Zion was justified in part by the need to transport the prime minister's entourage and accompanying journalists, the Prime Minister's Office declined to allow journalists to travel aboard the current trip to the United States, instead requiring them to travel on commercial flights.Follow us on Google