Boeing posts bigger loss than expected as Air Force One costs weigh on results - CNBC
Boeing reported a larger-than-expected second-quarter loss, largely driven by cost overruns in the Air Force One development program. Despite the losses, the company saw revenue growth and increased commercial aircraft deliveries.
Why it matters
Boeing's financial performance is a critical indicator for the aerospace industry and U.S. manufacturing, especially given its role as a major defense contractor.
Boeing reported a wider-than-expected loss for the second quarter as the aircraft manufacturer's long-delayed Air Force One program weighed down results.
Boeing took a $280 million loss on the program to deliver two 747s that will serve as the next-generation Air Force One aircraft to the U.S. government as it said it ramped up investment for that plane. It said it still expects the first delivery in 2028.
"While we're making progress on our development programs, you're never done until you're done," CEO Kelly Ortberg said in a note to staff.
Ortberg told CNBC's " Squawk on the Street " that the Air Force One program is through the design phase.
"It's very important to our customer that we deliver that airplane on time," he said. "We're gonna put more resources on to make sure that we do that."
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