USAF General Demands Boeing Fix Tanker Issues Before New Orders

• The Air Force will not award a new contract for 75 KC-46s until Boeing fixes problems with the refueling boom and visual system, with resolution expected next year
• Boeing has lost more than $7 billion on the fixed-cost KC-46 program and plans to revise pricing on future contracts to 'make money' on the program
• The company delivered 14 tankers in 2025 and plans to deliver 19 in 2026, requiring higher resource levels to meet delivery schedules

Summary: USAF General Demands Boeing Fix Tanker Issues Before New Orders

The U.S. Air Force is withholding new orders for Boeing's KC-46 aerial refueling tankers until the company resolves ongoing technical problems, according to Vice Chief of Staff Gen. John Lamontagne during a March 4 Senate Armed Services Committee hearing.

Key Details:

• The Air Force will not proceed with a follow-on contract for 75 additional KC-46 tankers until deficiencies are addressed
• A decision on the new contract is expected approximately two years away, with issues projected to be resolved next year
• Current contract covers 183 tankers, with over 100 already delivered
• Boeing delivered 14 tankers in 2025 and plans 19 deliveries in 2026

Technical Issues:

The KC-46 has faced persistent problems with its refueling boom and the visual system operators use during refueling operations. Deliveries were temporarily paused in the previous year due to these concerns.

Financial Impact:

Boeing has lost over $7 billion on the fixed-cost KC-46 program. CEO Kelly Ortberg acknowledged in January that the program requires elevated resources to ensure on-time deliveries and called the existing contract "a bad contract for the last decade." The company took an unspecified charge in Q4 earnings related to the program.

Ortberg indicated Boeing will revise pricing for any future contract to ensure profitability. The KC-46, based on the commercial 767, is replacing the Air Force's aging KC-135 tanker fleet from the 1950s-60s. Several KC-46s are currently supporting U.S. air strikes on Iran.