Apr 27, 2022 - Economy & Business

Boeing lost $660 million on Trump’s Air Force One deal

Boeing Co. 737 Max airplanes outside the company's manufacturing facility in Renton, Washington, U.S., on Monday, March 21, 2022

Boeing Co. 737 Max airplanes outside the company's manufacturing facility in Renton, Wash., on March 21. Photo: David Ryder/Bloomberg via Getty Images

Boeing's CEO said Wednesday the manufacturer should have not agreed to former President Trump's proposed deal to build two new Air Force One aircrafts.

Driving the news: “Air Force One — I'm just going to call a very unique moment, a very unique negotiation, a very unique set of risks that Boeing probably shouldn't have taken,” CEO Dave Calhoun said during a quarterly earnings call.

  • “But we are where we are, and we're going to deliver great airplanes and we're going to recognize the costs associated with it," he said.
  • Calhoun cited $660 million in costs during the first quarter of 2022 related to the Air Force One contract.

The big picture: Trump and Boeing in 2018 negotiated a $3.9 billion fixed-price contract for a pair of new presidential aircrafts, known as Air Force One when the president is on board.

  • The agreement included the two 747-800 aircrafts and the cost of modifying them, including external stairs, large galleys and a secure communications suite.
  • The deal was negotiated under then-CEO Dennis Muilenburg. Calhoun took over in 2020.

The first of the new Air Force One aircraft is set to be ready in 2024, and the second in 2025.

State of play: Boeing on Wednesday also said it lost $1.5 billion during the first quarter on total revenue of $14 billion, which falls below analysts’ estimates, the New York Times reports.

  • The manufacturer also reported a loss of about $2.75 per share during the first quarter.

Go deeper ... Trump's $3.9 billion deal for a new Air Force One

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