Boeing Confirms 2028 Air Force One Delivery, Warns of Further Cost Increases

Boeing remains on track to deliver two new Air Force One aircraft in 2028, but the company expects further cost growth on the high-profile program, which is already significantly delayed and over budget. The update was provided by a company executive ahead of the Farnborough Airshow in the UK.

Program Status and Cost Outlook

Steve Parker, CEO of Boeing's Defense, Space & Security division, confirmed the delivery target to reporters and stated that the first of the two highly modified jets is expected to begin testing next year. However, he also flagged upcoming financial pressures on the fixed-price contract.

"I do expect to see some cost growth there as we come through and we finish off the wiring and the structures, as well as finishing up our own certifications," Parker said, according to Reuters. This indicates that while the delivery schedule is holding, the program's profitability will likely face further erosion.

A History of Delays and Overruns

Boeing was awarded a $3.9 billion fixed-price contract in 2018 to convert two Boeing 747-8 aircraft into the next-generation presidential transport. Since then, total costs have surged to more than $5 billion due to supply chain issues, engineering challenges, and labor complexities.

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Even with the 2028 delivery date, the program is running approximately four years behind its original schedule. The new aircraft are set to replace the current Air Force One planes, which have been in service since 1990 and are equipped with advanced communications and defensive systems.

Context for Investors

The Air Force One program has been a significant financial drag for Boeing's defense unit, highlighting the risks associated with fixed-price development contracts. The continued cost overruns, while anticipated by the company, will remain a focus for investors monitoring the segment's financial performance.

In May 2025, the U.S. government accepted a Boeing 747 from Qatar to serve as a temporary presidential aircraft, bridging the gap until the new, custom-built jets are ready for service.