Boeing's latest financial report, released on Tuesday, shows that the replacement project for two Air Force One aircraft is currently four years behind schedule, with the contract incurring a $280 million loss for the company in the second quarter of 2026. During the first term of former President Donald Trump, Boeing signed a contract with the U.S. government to build two military versions of the Boeing 747 passenger jets. The aircraft, originally slated for delivery in 2024, have now been delayed to as early as 2028, leading to billions of dollars in cost overruns for Boeing.

Boeing CEO Kelly Ortberg sent an internal email to all employees on Tuesday, stating that the company is investing "significant resources" to ensure delivery of the aircraft by 2028. The company reported that in the three months ending in June, production and certification-related expenses added $280 million in additional costs. According to reports, the cumulative cost overrun for this project has now exceeded $3.1 billion, all of which is being borne by Boeing itself.

This financial report once again highlights the relentless cost escalation plaguing the two Boeing 747 conversion projects. The project began in 2018 when Trump urged then-Boeing CEO Dennis Muilenburg to sign a contract, setting a $3.9 billion cap on costs for U.S. taxpayers. The agreement was later adjusted, with the amount raised to approximately $4.5 billion.

Last year, Trump cited delays in the Air Force One delivery as a reason to propose using a plane gifted by Qatar as a temporary presidential aircraft. However, this plan also encountered cost overruns and various challenging issues: the aircraft lacked certain security features. This directly led to Trump flying to Turkey for a NATO summit on this new plane, but returning on the old Air Force One. Reports indicate that the U.S. Secret Service urged Trump to switch aircraft, concerned that the new plane's security facilities were insufficient to address various security threats. The plane gifted by Qatar will also require billions of dollars in modifications to upgrade its power supply system, electrical circuits, and add encryption communications and self-defense-related equipment.

Boeing reported a net loss of $428 million for the second quarter, adding to the $7 million loss from the first quarter.