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Boeing’s new Air Force One aircraft are far behind schedule, and Boeing has reported large losses on the work. But “more than $2 billion over budget” needs careful framing: the available figures do not establish a verified cumulative Boeing loss of more than $2 billion, nor do they show that the government’s contract price rose by that amount. The main development contract is fixed-price, while added work and Boeing’s reported losses are separate measures.
What the $2 billion figure does—and does not—mean
The program is replacing two VC-25A presidential aircraft with two specially modified Boeing 747-8s, designated VC-25B. The Department of Defense described the firm-fixed-price engineering and manufacturing development (EMD) contract as $3.9 billion in its FY2026 acquisition-cost publication. Boeing’s 2025 SEC filing described the EMD program as a $4 billion effort to develop and modify the two aircraft. Those are attributed figures from different sources, not proof of a later $2 billion increase in the government’s bill. Department of Defense, FY2026 Program Acquisition Costs by Weapon System; Boeing 2025 SEC filing.
Boeing’s losses are another measure. On a fixed-price contract, Boeing bears cost risk if it takes more money, labor, or time than it expected to deliver the agreed work. A reported loss is not automatically an increase in what the government pays. The program also includes added scope that must be kept distinct from the original EMD contract: Boeing’s filing describes a $657 million cost-type modification in the first quarter of 2024 for two additional test aircraft and other scope increases. The filing’s $4 billion EMD description, the Defense Department’s $3.9 billion contract figure, the $657 million modification, and Boeing’s losses are not interchangeable totals.
The available sources do not establish a verified cumulative VC-25B loss total through October 4, 2026. The headline’s “more than $2 billion” should therefore not be read as an independently verified current total of Boeing losses or government spending.
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Why the program has become more expensive for Boeing
The aircraft are not ordinary passenger 747s delivered off the production line. The Defense Department describes the work as including specialized presidential and military systems, such as communications, an executive interior, military avionics, and self-defense capability. Integrating those features, then testing and certifying the aircraft, creates a more involved development job than buying unmodified commercial airliners.
Design maturity took longer than planned
The Government Accountability Office’s 2026 weapon systems assessment says final configuration design was completed in October 2025, about six years after critical design review. Late design completion can leave less schedule room for building, integrating, and verifying the final configuration. GAO also assessed the program as almost three years behind its current baseline schedule. GAO, 2026 weapon systems assessment.
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Requirements and scope changed
Boeing’s 2025 filing notes customer requirement adjustments and says the company was working with the Air Force to reset the schedule. Separately, the 2024 cost-type modification added two test aircraft and other scope. The added work affects program effort, but it should not be folded into a claim about overruns on the original fixed-price EMD contract without specifying which scope and accounting measure are being counted.
Production and certification resources added to address the work
In its July 2026 results, Boeing attributed $280 million in VC-25B losses recorded in the second quarter primarily to additional production and certification resources. That is a quarterly loss figure, not a cumulative program total. It illustrates how further resources can increase Boeing’s recorded costs even as the company continues work toward delivery. Boeing, second-quarter 2026 results.
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Cost figures, kept in context
| Figure | What it describes |
|---|---|
| $3.9 billion | Department of Defense’s FY2026 publication describes this as the firm-fixed-price EMD contract for the program. It is a contract amount, not a measure of Boeing’s losses. |
| $4 billion | Boeing’s 2025 SEC filing describes the EMD program to develop and modify two 747-8 aircraft at this amount. It is Boeing’s description of the program, not an independently verified overrun total. |
| $657 million | Boeing’s filing identifies a first-quarter 2024 cost-type modification for two additional test aircraft and other scope increases. It is added scope, not the original EMD amount or a cumulative loss. |
| $280 million | Boeing reported this as VC-25B losses in the second quarter of 2026, primarily driven by additional production and certification resources. It is a quarterly figure. |
When will the replacement aircraft arrive?
GAO’s 2026 assessment found the program almost three years behind its current baseline. Boeing’s July 28, 2026 results continued to anticipate first delivery in 2028. That is Boeing’s expectation, not a guaranteed delivery date; the cited material does not establish a delivery date for the second aircraft.
The Bridge aircraft is a separate interim effort
The Air Force’s VC-25B Bridge is an interim-aircraft effort, distinct from Boeing’s two long-term replacement aircraft. The Air Force reported that the Bridge aircraft completed flight testing and was on schedule for summer 2026 rollout and delivery to the Presidential Airlift Group; a later Air Force update reported its arrival at Joint Base Andrews and the start of commissioning flights. Those updates do not mean either of Boeing’s two replacement aircraft has been delivered. Air Force, Bridge aircraft flight-testing update; Air Force, Bridge aircraft arrival update.
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