A Boeing rendering of the future Air Force One or VC-25B. The aircraft is the same type of jet as the donated Qatari jet that President Donald Trump is using as a temporary Air Force One.
Boeing
Boeing Co.’s troubled Air Force One project underway at Port San Antonio lost another $280 million, adding to the company’s losses in the second quarter.
The Arlington, Va.-based airplane maker reported a $444 million loss on $24.6 billion in revenue for the period that ended June 30.
Article continues below this ad
The firm blamed much of the loss on its work in San Antonio to convert two 747s into presidential jets, known as the VC-25B project. That $4 billion deal, partially brokered by President Donald Trump during his first term, is four years behind schedule and at least $2.7 billion over the original price.
RELATED: Boeing’s Port San Antonio Air Force work is years late and over budget, federal watchdog says
Boeing President and CEO Kelly Ortberg called the VC-25B loss “disappointing,” but said it was necessary to stay on track to deliver the jet in 2028.
San Antonio Express News Logo
Make us a Preferred Source on Google to see more of us when you search.
Add Preferred Source
The company “made the decision to add significant resources to support the build and test schedule on VC-25B,” Ortberg said during Tuesday’s earnings call. They’ll “help mitigate potential risks during certification and flight tests.”
Article continues below this ad
Boeing still expects to deliver the first jet in 2028.
A recent government report found that in addition to delays, the biggest risk to the program is whether the Air Force and Boeing can complete certifications and testing on a tight schedule. Only seven of 80 steps to certify the jets’ airworthiness were complete, according to the Government Accountability Office.
Boeing’s work at the port has been slowed over the years by various issues, including COVID, design problems, a need to redo work, subcontractor issues, a shortage of qualified workers and security lapses.
Frustration over the company’s slow progress on the jets was one of the reasons that Trump had the Air Force convert a donated Qatari luxury liner into a temporary Air Force One.
Article continues below this ad
READ NEXT: Trump’s Qatar jet likely headed to Texas for security upgrades
That 14-year-old jet, known as the Bridge Aircraft, is slated to go out of service to get more work done in the wake of reports of security vulnerabilities after Trump had to fly out of Turkey on an old Air Force One. Neither the Pentagon nor White House has said how much the upgrades to the plane that Trump plans to keep after he leaves office will cost taxpayers.
“Our focus has been on restoring trust and we are now building on that through a sustained focus on safety, quality, and on-time performance,” Ortberg said in a statement. “While there is more work ahead in the second half of the year, the momentum we are building continues to move Boeing in the right direction.”
Despite the charge on the Air Force One program, Boeing reported that it had narrowed its loss compared with the second quarter of 2025, when it reported a net loss attributable to shareholders of $611 million. Revenue also improved, rising 8%.
Article continues below this ad
Although revenue exceeded analysts’ average estimate of $24.1 billion, Boeing’s loss was significantly larger than expected. The average estimate of six analysts surveyed by Zacks Investment Research was for a loss of 34 cents per share. Boeing reported a loss of 67 cents per share; adjusted for non-recurring gains, the loss was 76 cents per share.
Boeing’s defense, space and security business, which includes its work on the Air Force One jets, lost $15 million on $7.4 billion in revenue. In the second quarter of 2025, it reported a profit of $110 million on revenue of $6.6 billion.
Its commercial airplane business lost $322 million on $11.8 billion in revenue, an improvement from the year-ago quarter when it lost $557 million on revenue of $10.9 billion.
Only its aftermarket support and maintenance business, known as Global Services, posted a profit. It made $968 million on $5.3 billion in revenue. Although the unit’s revenue was up 1% compared with the second quarter of 2025, its profit slipped 8%.
Article continues below this ad
SA INC.: Get the week’s top local business stories in your inbox
Boeing shares were up 5% in midday trading.
Boeing’s port operation also works on the rest of the government’s executive jet fleet in addition to the B-52 and other military aircraft and commercial jets. The company has more than 5,000 employees at the port and 7,000 across Texas.
At the beginning of Tuesday’s earnings call, Ortberg honored the crew of the Air Force B-52 that crashed at Edwards AFB, Calif., in June. That plane had spent the previous two years at the port while crews installed an upgraded radar system.
Article continues below this ad
“Before we get started, I want to express our sincere condolences to the families and loved ones of the eight dedicated aircrew whose lives were lost in the U.S. Air Force B-52 accident in June. … We continue to provide technical assistance to the investigation, and we’re supporting the Air Force in every way we can.”
The loss of the first test aircraft set the program behind, but a second B-52 being retrofitted at the port with the new radar is expected to be ready to fly by the end of the year.
Air Force officials acknowledged the crash has meant that they will need to adjust the original schedule.
Article continues below this ad
The Associated Press contributed to this report.