"We’ve made the decision to add significant resources to support the build and test schedule on VC-25B," Boeing President and CEO Kelly Ortberg said, explaining why the company took a $280 million charge this quarter.
Boeing records another $280 million hit, pushing out-of-pocket losses past $3 billion
Boeing announced a $280 million loss on the VC-25B Air Force One conversion program during a quarterly earnings call, saying the charge reflects added investments intended to keep the program on track for delivery. The company had previously reported about $2.8 billion in charges as of 2024; the new charge "would push that figure to over $3 billion," according to the reporting. Boeing stated in a press release that these losses were "primarily driven by an investment in additional production and certification resources" and reiterated it "continues to anticipate first delivery in 2028."
Schedule, certification and changing requirements
The VC-25B program remains behind its original schedule. Boeing first aimed to deliver a fully-equipped VC-25B by December 2024. In September 2025 Boeing provided a revised schedule targeting mid-2028 and mid-2029 for the two aircraft; the Government Accountability Office (GAO) reported in June that the Air Force hopes to receive the first aircraft by March 2028. Boeing and program officials cited changes to the airworthiness certification approach, aircraft requirements (including interior designs, weight limitations and storage), and a ramping supply chain as reasons for the revised timetable.
The program is developing 80 certification plans to demonstrate airworthiness; as of October 2025 the Air Force had approved seven of those plans. Boeing said the additional resources will help mitigate "potential risks during certification and flight tests." The GAO also noted the Air Force has yet to determine when operational testing will begin.
GAO numbers and government spending
The GAO reported that the U.S. government's estimated acquisition cost for the program rose from $6.263 billion to $6.608 billion between December 2018 and August 2025. The Air Force has also added funding directly to specific work on the program, including a $15.5 million contract modification in December 2025 to support communications systems work.
VC-25B Bridge aircraft: donation, rapid conversion, and immediate concerns
The program’s delays and cost growth have been complicated by the presence of a separately acquired "Bridge" VC-25B — a 747-8i jet donated by the Qatari government and converted by L3Harris in roughly 10 months to serve as an interim presidential aircraft. That Bridge jet entered service earlier this month; the president first flew on it on July 1 to North Dakota and then used it for travel to the NATO summit in Turkey. On the return leg, the president unexpectedly swapped back to an older VC-25A after reports that a credible threat from Iran prompted the Secret Service to advise the switch.
Reports surfaced that the Bridge aircraft lacks key self-defense features and other capabilities present on the VC-25As and planned for the Boeing-converted VC-25Bs. President Trump announced last week that the Bridge aircraft will be sent off to have its capabilities "maxed out," and the White House confirmed the jet is expected to be out of service for roughly a month for additional upgrades.
Operational risks: corrosion cracks, communications work, and pared-down capabilities
Repairs of stress corrosion cracks on the 747-8 platform are ongoing and "are expected to be completed in 2026," according to the GAO report; the FAA issued a formal airworthiness directive to all operators in 2023 addressing those problems. The GAO also flagged that delays can mean technologies intended for incorporation become out of date, noting the Air Force plans to upgrade mission communications systems after delivery but that timelines are still being developed. Separately, the GAO and reporting noted that some requirements for the fully-equipped VC-25Bs have been adjusted over time — including the lack of an in-flight refueling capability on the jets Boeing is converting now, a capability that the VC-25As possess.
What this means for Boeing, the Air Force, and the White House
- Boeing: The company has accepted additional out-of-pocket costs and is investing in production and certification resources to meet a 2028 delivery target; the $280 million charge reflects those near-term investments under the firm, fixed-price contract.
- The Air Force: The service is navigating revised certification plans and schedule shifts while continuing to plan post-delivery upgrades to mission communications; it has also infused targeted funding such as the December 2025 $15.5 million modification.
- The White House / Presidential travel operations: The donated Bridge jet’s short-term entry into service and subsequent withdrawal for upgrades highlights immediate operational tradeoffs — the Bridge has been used on overseas trips but was pulled from service for roughly a month amid concerns about defensive and other capabilities.
Boeing says it is pressing ahead to deliver the first fully-equipped VC-25B in 2028, but the program’s history — original delivery goals missed, GAO-tracked cost increases on the government side, ongoing corrosion repairs and a temporarily grounded Bridge jet — leaves open how the company and the Air Force will reconcile certification, capability and schedule while holding to firm contract terms. What will happen to the Bridge aircraft after its upgrades, and whether the Boeing-converted jets will regain originally intended capabilities such as in-flight refueling, remain concrete questions rooted in the program’s evolving timeline.
Source: TWZ — Boeing Has Now Eaten $3B In Air Force One Cost Overruns
