Boeing's mounting losses: Air Force One program and 737 Max production issues take a toll
Boeing reported a loss of $482 million in the third quarter of 2023 on the Air Force One program, citing higher manufacturing costs, labor instability, and supplier negotiations. The company has faced delays and problems with the VC-25B program, resulting in a total loss of over $2.4 billion. Boeing's defense business also suffered losses on a satellite program, costing $315 million. The company outlined plans to improve performance, including lean initiatives and contracting disciplines. Despite challenges, the Air Force may purchase 75 more KC-46 tankers from Boeing, while Lockheed Martin has withdrawn from the next tanker competition. Airbus still intends to compete for the contract.