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Boeing Takes $280M Charge on Air Force One Replacement

July 28, 2026

2 min read

Key Takeaways

Boeing incurs $280 million charge on VC-25B program.
Total losses now exceed $3 billion.
Charge attributed to additional production and certification resources.
Delivery date set for 2028.

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Strategic Implications

This charge may indicate ongoing challenges in Boeing's defense portfolio, which could impact the company's ability to deliver on future contracts. The investment in additional resources suggests a focus on mitigating risks, which could help maintain schedule performance and customer satisfaction. However, the program's history of technical and workforce challenges may continue to pose risks to the delivery timeline.

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What Happened

Troubled VC-25B Program Pushes Total Losses Over $3 Billion

Boeing has announced a $280 million charge on the troubled VC-25B program, the planned replacement for Air Force One, pushing total losses over $3 billion. The charge is attributed to an investment in additional production and certification resources, which CEO Kelly Ortberg says will help mitigate potential risks as the aircraft moves into flight testing. The program has been mired in technical and workforce challenges, setting it back from its original 2024 delivery date. Boeing is financially responsible for covering all cost overruns on the program, which is now expected to be delivered in 2028. The news was first reported by Breaking Defense.

Source | Originally Published: July 26, 2026

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