Boeing remains on track to deliver the first of two new Air Force One presidential jets by mid-2028, even as the company absorbed a $280 million charge in the second quarter of 2026 due to accelerated engineering costs on the troubled program.
The latest cost hit brings Boeing’s total losses on the VC-25B program to more than $3 billion since the contract was awarded in 2018. The program’s total estimated cost has climbed to more than $5 billion, more than double the original $3.9 billion fixed-price contract, according to multiple reports from July 28, 2026.
Because Boeing is operating under a firm fixed-price agreement with the U.S. Air Force, the company must absorb all cost overruns itself rather than passing them to taxpayers. This structure shields the government from unexpected expenses but has proven devastating for Boeing’s bottom line on this particular program.
The 2028 delivery timeline represents a four-year delay from the original 2024 target. According to a Defense News report from July 21, 2026, Boeing confirmed it would remain on schedule for the mid-2028 delivery of the first aircraft, with the second following in mid-2029, though meeting that deadline will require additional spending.
The VC-25B program converts two Boeing 747-8 aircraft into heavily modified presidential transports. The conversion involves extensive security upgrades, communications systems, and specialized interior configurations that have proven far more complex than initially anticipated. A New York Times report from July 25, 2026, described the modernization effort as now slated to be completed in 2028—13 years after the Air Force first initiated the program.
Why the Program Has Spiraled
The delays stem from multiple factors, including supply chain disruptions, design changes, and the sheer complexity of converting commercial aircraft into the most secure and capable presidential transport in the world. Boeing’s own corporate management challenges have also contributed to the program’s struggles, according to reporting from Popular Science in March 2025.
In February 2025, a senior administration official told Reuters that the program could face further delays until 2029 or later due to ongoing supply chain issues. By December 2025, Boeing had revised its schedule to accelerate delivery to mid-2028, a shift that now requires the company to fast-track work and absorb the resulting cost increases.
The cost overruns have prompted Boeing to expect more charges to hit the 2028 delivery target, as engineering and production work accelerates. Meanwhile, the Air Force has been forced to keep aging VC-25A aircraft in service longer than planned. A November 2022 Business Insider report noted that keeping the current Air Force One fleet operational through 2028 would cost taxpayers an estimated $340 million in additional maintenance and operations.
The Interim Solution
To bridge the gap while the VC-25B remains unfinished, the U.S. Air Force accepted delivery of a Boeing 747-8 aircraft gifted by the Qatari government in summer 2026. This interim aircraft, known as the VC-25B Bridge, began flying as Air Force One in July 2026. However, the Boeing 747-8 Air Force One received security upgrades after concerns were raised, and underwent additional modifications before full operational use.
Boeing’s fixed-price contract structure, while protecting taxpayers, has made the Air Force One program a significant financial burden for the defense contractor. The company has now spent more than $3 billion beyond the original contract value, with additional charges likely as work accelerates toward the 2028 deadline. Despite the financial pain, Boeing has committed to delivering the aircraft on schedule, betting that completing the program will help restore confidence in the company’s defense and space division after years of high-profile delays and cost overruns.
Sources
- Reuters — Boeing’s Q2 2026 $280 million charge on Air Force One and program cost structure
- The New York Times — Boeing 747-8 Air Force One modernization effort timeline and total program cost estimate of $5.1 billion
- Defense News — Boeing’s 2028 delivery commitment and four-year delay from original 2024 schedule
- Breaking Defense — Boeing’s July 2026 announcement of additional cost overruns to meet 2028 delivery
- Forbes — Boeing’s cumulative $3 billion in losses on the VC-25B program
- Business Insider — 2022 estimate of $340 million cost to keep current Air Force One fleet operational through 2028
- Popular Science — Analysis of Boeing management challenges contributing to program delays
