Boeing Spends Big, Misses Wall Street Expectations to Build New Air Force One -- Update

By Drew FitzGerald

Boeing spent another quarter in the red as it poured more resources into developing new presidential jets and accelerating production of commercial planes.

The U.S. manufacturer said fast-tracking work on the modified 747-8 jets that will some day serve as Air Force One will cost an additional $280 million, the latest in a series of cost overruns on the more than $4 billion project.

Boeing's commercial airplane division also posted an operating loss, albeit a smaller one than in the same quarter last year. The business absorbed costs from ramping up its manufacturing operations in a bid to chip away at its multibillion-dollar backlog of undelivered planes.

The results missed Wall Street's expectations for earnings, though not for revenue. Shares of Boeing ticked up more than 1% in premarket trading.

The company earlier this month opened a new production line in Everett, Wash., meant to boost production of its workhorse 737 MAX jets. Boeing is now aiming to make 47 of the narrow-body planes each month, up from 42 earlier this year. Increasing the production rate could boost the company's overall profitability by giving its commercial division stronger economies of scale.

Boeing's overall second-quarter net loss of $428 million narrowed from the $612 million loss it posted a year earlier. Sales climbed 8% to $24.56 billion, driven by stronger commercial plane deliveries.

Showing progress in delay-plagued programs is critical for Boeing's standing with the Trump administration as well as customers. A series of safety and quality lapses prompted the Federal Aviation Administration in 2024 to limit the company's output and slow the certification of new aircraft models. Securing regulators' approval is a critical step before commercial jets can be delivered to airlines.

In a directive Monday, the FAA proposed inspections of hundreds of Boeing 737 MAX jets over concerns that passenger seats were improperly installed.

"We have some important go-dos as we continue to stabilize across our entire production system and complete the certification work" for the company's 737 and 777 programs, Chief Executive Kelly Ortberg said in a Tuesday message to employees. He said the company is "also adding significant resources" to help the Air Force One program stay on schedule.

President Trump almost canceled Air Force plans to have Boeing build two new jets to replace the models that have been flying since the George H.W. Bush administration. The manufacturer originally said it wouldn't be able to finish overhauling the souped-up aircraft, known as the VC-25B, until after Trump left office.

The company later moved the delivery of the first jet to 2028, a shift that required it to bring on more mechanics and engineers qualified to work under the strict classification rules required for the program.

Trump this year flew a modified commercial airplane provided by the Qatari government on some trips, though security concerns forced him to fly home on an older Air Force One jet from a recent visit to Turkey. The White House said the Qatari jet, known as the VC-25B Bridge, will receive additional upgrades this fall.

Write to Drew FitzGerald at andrew.fitzgerald@wsj.com

(END) Dow Jones Newswires

July 28, 2026 08:59 ET (12:59 GMT)