The new Air Force One just got a big update - and price tag

Key Points:

• Boeing is intensifying efforts to deliver the first of two heavily modified 747-8 Air Force One jets by 2028, incurring an additional $280 million cost last quarter due to increased production and certification resources.
• The Air Force One program’s cost overruns have exceeded $3.1 billion, with the total contract price rising from an initial cap of $3.9 billion to about $4.5 billion, including spare parts and other items.
• The delays and cost increases are attributed to engineering design changes, supplier performance issues, schedule delays, and pandemic-related inefficiencies, prompting former President Trump to use a Qatari-donated 747 jet temporarily.
• The existing presidential planes, in service since 1990, were deemed too costly to maintain and replace, leading to the current Air Force One contract, which Trump personally influenced and at times threatened to cancel due to high costs.
• Boeing’s financial struggles continue alongside the Air Force One issues, with a $428 million loss reported in Q2 2024, compounded by challenges with the 737 Max program and ongoing regulatory and production setbacks.