Boeing reports unexpected losses on troubled Air Force One program

On Wednesday, Boeing announced it would spend additional $766 million in costs on the deal for new Air Force One aircrafts negotiated in 2018. Under this agreement, the company will build two new presidential aircrafts. Boeing Co. repeatedly encountered problems on the project, as reported by Reuters.

Boeing CEO Dave Calhoun said that the escalation in criticism amid the program was justified. Calhoun's predecessor, Dennis Muilenburg, had previously promised President Donald Trump that the cost of the new 747 would not exceed $4 billion. 

Calhoun told CNBC that the contract price was insufficient. He also said that the biggest mistake the company made about the Air Force One project was locking it into a fixed-price contract. 

Earlier, Boeing had lost a total of $1.1 billion on costs associated with the deal since 2020. Currently, the company is reporting $1.9 billion losses on the $4.3 billion project. The company is now three years behind schedule.

The Boeing 747-8 is designed to be an airborne White House that is able to fly in worst-case security scenarios such as nuclear war. The aircraft is equipped with military avionics, advanced communications and self-defense systems. The delivery of new Air Force One jets is scheduled for 2026 and 2027.

The company officials noted that the company could be at risk of new unexpected losses in the long term.