Boeing has revealed that they have made an additional $482m loss on the development of the new Air Force One aircraft for the U.S Government.
This disclosure was made when the American planemaker was discussing the Defense, Space & Security side of their third-quarter financial results.
Without further ado, let’s get into it…
Boeing Makes Additional $482m Loss on New Air Force One…
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In the report, it said the following regarding the new Air Force One aircraft in development by Boeing:
“Defense, Space & Security third quarter revenue was $5.5 billion.”
“Third quarter operating margin was (16.9) percent, due to a $482 million loss on the VC-25B program driven by higher estimated manufacturing cost related to engineering changes and labor instability, as well as resolution of supplier negotiations.”
This won’t come as welcome news for the American planemaker, as they are no doubt keen on making some money from the new Air Force One program.
It isn’t surprising also, given comments from Boeing’s Dave Calhoun in the past about the deal made with ex-President Donald Trump over the aircraft back in 2022:
“Air Force One I’m just going to call a very unique moment, a very unique negotiation, a very unique set of risks that Boeing probably shouldn’t have taken, but we are where we are, and we’re going to deliver great airplanes”.
All eyes will be on the American planemaker to see what additional losses will be accrued by this particular development, and whether there is any possibility of them going back to the table with the U.S Government moving forward.
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