Boeing still on track for 2028 Air Force One delivery as costs rise

• Program costs have exceeded $5 billion, up from the original $3.9 billion contract awarded in 2018, with further cost increases anticipated
• Even with 2028 delivery, the Air Force One replacement program will be four years behind its original schedule
• The U.S. accepted a luxury Boeing 747 from Qatar in May 2025 as a temporary bridge aircraft while the new specialized jets are completed

Summary: Boeing Air Force One Delivery on Track Despite Rising Costs

Key Developments:

Boeing confirmed it remains on schedule to deliver two new Air Force One jets in 2028, despite acknowledging additional cost overruns on the already troubled program. Steve Parker, CEO of Defense, Space & Security, stated the first aircraft will begin testing in 2027, though he expects "some cost growth" as the company completes wiring, structures, and certifications.

Financial Impact:

• Original contract value: $3.9 billion (awarded 2018)
• Current costs: Exceeded $5 billion
• Program status: Four years behind original schedule even with 2028 delivery

Program Details:

The project involves converting two Boeing 747-8 aircraft into highly specialized presidential jets equipped with advanced communications and defensive systems. These will replace the current Air Force One planes that entered service in 1990.

Interim Solution:

In May 2025, the U.S. accepted a luxury Boeing 747 from Qatar as a temporary presidential aircraft to serve as a bridge until the new jets are ready. However, security concerns have already led to operational complications with this interim solution.

Market Implications:

The continued cost overruns highlight Boeing's ongoing challenges in executing fixed-price government contracts, adding to the company's financial pressures. The announcement came ahead of the Farnborough Airshow in the UK, where Boeing faces scrutiny over production quality and program management across its portfolio. The delayed and over-budget program underscores broader concerns about Boeing's defense division profitability and execution capabilities.