Boeing's Air Force One Program Still Aiming for 2028 Delivery, but Costs Keep Climbing

Air Force One Delivery on Track for 2028 Despite More Cost Overruns

Boeing's defense chief, Steve Parker, announced at the Farnborough Airshow that the much-delayed Air Force One replacement program is still aiming for a 2028 delivery. However, meeting that target will cost the company even more money on top of a contract that has already swelled from $3.9 billion to over $5 billion.

The two highly modified Boeing 747-8 jets are intended to replace the current presidential aircraft, which entered service in 1990. Parker told reporters that the first aircraft should begin testing next year, but that finishing the wiring, structures, and internal certifications would push costs higher. The program is already running four years behind its original schedule.

The urgency was underscored in May 2025, when the United States accepted a luxury Boeing 747 from Qatar for use as a temporary presidential aircraft. That jet has since entered service as a bridge aircraft, though security concerns prompted President Donald Trump to avoid flying it back from Turkey, instead using an older Air Force One.

What the Cost Overruns Mean for Boeing and the Program

Boeing’s Fixed-Price Problem

The original 2018 contract was awarded on a fixed-price basis, meaning that any cost growth directly eats into Boeing’s profit margin on the deal. The company has already absorbed billions in losses as the program’s price tag ballooned, and Parker’s admission that more spending is needed signals that the financial hit will deepen. For Boeing’s defense segment, which has struggled with underperforming fixed-price programs, this is another dent in profitability and a reminder of the risks of aggressive bidding.

The Political Spotlight

Air Force One is arguably the world’s most visible government aircraft, and its production carries enormous symbolic weight. Persistent overruns and delays are likely to attract renewed scrutiny from Congress and the White House, especially given the Trump administration’s keen interest in the program and the security kerfuffle over the Qatari temporary jet. The program’s performance will feed into broader debates about defense acquisition reform and Boeing’s ability to deliver on complex government projects.

The Qatari Stopgap’s Wider Implications

The acceptance of a luxury Qatari 747 as an interim presidential aircraft was an unusual and high-profile measure. While it has kept the fleet operational, the fact that the President deemed it too risky to fly from Turkey highlights the compromises involved and the unusual pressures the program’s delays have created. The move also adds a diplomatic layer, as the arrangement tied a close Gulf ally into US presidential logistics, something not seen before at this level.

For Boeing Investors, the Pentagon, and Industry Rivals

For Boeing investors: Watch the company's next quarterly report for any new provision or loss related to the Air Force One program. CEO Parker's warning of “some cost growth” on a fixed-price contract directly threatens defense segment margins, which are already under pressure.

For the US Air Force and Pentagon: The 2028 target hinges on a testing program that has not yet begun. With wiring and certification work still outstanding, contingency planning for continued reliance on the 1990-vintage jets beyond 2028 may be prudent, even if publicly the schedule holds.

For other defense contractors: The Air Force One experience reinforces the danger of bidding aggressively on fixed-price development contracts for complex, one-off aircraft. Expect this program to be cited in future procurement debates as a cautionary tale, potentially influencing the structure of competitions for the next generation of special-mission military aircraft.