Boeing’s troubled Air Force One program incurred another cost overrun in the three months that ended in June, contributing to a bigger-than-expected $428 million loss in the second quarter of 2026.
The company’s effort to build two presidential planes has been hampered by delays and unexpected costs since it agreed to make them in 2018 at a fixed price of $3.9 billion. Boeing said production and certification expenses added $280 million to its costs in the second quarter. The planes were expected to be delivered in 2024, but that date has been pushed to 2028 after frequent cost overruns.
Those delays contributed to President Trump’s decision to retrofit a jet gifted to the United States by the Qatari royal family as a temporary Air Force One replacement. But Mr. Trump’s push to adapt that aircraft has resulted in ballooning costs and safety trade-offs. This month, Mr. Trump flew out of Turkey on the old Air Force One at the urging of the Secret Service.
Despite the quarterly loss, which was more than double what was expected, Boeing’s turnaround efforts are gaining momentum. The company started a fourth production line this month for the 737 Max, its most popular plane by far. The expansion is expected to help Boeing produce more of the planes, which account for a majority of its more than half-trillion-dollar order backlog. And Boeing said a measure of cash flow was positive in the quarter, a sign of progress as the firm digs out from under a large amount of accumulated debt.
The company has also regained the trust of the Federal Aviation Administration, which has loosened some restrictions placed on Boeing after recent crises. Its 737 Max jets were grounded worldwide for nearly two years after design flaws contributed to fatal crashes in 2018 and 2019, in which 346 people died. In 2024, Being faced another crisis when a panel door blew off during a flight, the result of poor production practices. Boeing undertook several leadership and culture changes to address those problems.
This month, the F.A.A. said it would let Boeing resume signing off on its 737 Max and 787 planes after removing those privileges in 2019 and again in 2022. The agency said it had made that decision after “months of thorough data and safety review demonstrating consistent production quality.”
