Boeing reported a larger-than-expected adjusted loss of $428 million [1] for the second quarter of 2026 on Tuesday.

The financial hit underscores the ongoing struggles of the aerospace giant to manage high-profile government contracts while stabilizing its broader commercial operations. Cost overruns on the VC-25B program, the replacement for the U.S. presidential aircraft, weighed heavily on the quarterly results.

CEO Kelly Ortberg said that the expenses associated with building the two aircraft caused additional costs that expanded the company's adjusted loss. While reports on the specific impact of the Air Force One program vary, some estimates place the additional loss from the program at $280 million [2], while other reports link the broader $428 million loss [1] directly to these overages.

The scale of the budget issues is significant. Total cost overruns on the Air Force One program to date have reached $3 billion [3]. These expenses reflect the complexity of the VC-25B project, which requires stringent security and technical specifications for the presidential fleet.

Despite the quarterly loss, the company's share price rose following the announcement. This market reaction suggests investors may have already priced in the Air Force One setbacks or are focusing on other aspects of the company's recovery under Ortberg's leadership.

Boeing's headquarters in Seattle continue to manage the fallout from these overruns as the company attempts to streamline its production and delivery schedules. The VC-25B program remains a critical piece of the company's defense and government portfolio, though it has become a recurring source of financial volatility.

“Total cost overruns on the Air Force One program to date have reached $3 billion.”

The recurring financial losses tied to the VC-25B program demonstrate the high risk associated with fixed-price or highly specialized government contracts. For Boeing, the $3 billion in total overruns suggests a systemic struggle with cost estimation and project management on the Air Force One replacement, which may complicate future bidding for high-stakes defense contracts.