Boeing reported a net loss of about $428 million in the second quarter of 2026, primarily due to a $280 million charge linked to cost overruns and delays in the Air Force One replacement program [1, 2, 3, 4, 5]. The program involves modifying two Boeing 747-8 aircraft under a fixed-price contract worth $3.9 billion signed in 2018. The project is now roughly four years behind schedule and more than $1 billion over budget, contributing to cumulative excess costs exceeding $3 billion that Boeing largely absorbs due to contract terms [1, 3, 6, 7].

Despite the loss, Boeing's revenue rose 8% year-over-year to approximately $24.56 billion, helped by a 14% increase in commercial aircraft deliveries, which reached 171 planes during the quarter [1, 2, 5, 6]. The company generated positive free cash flow of $631 million in Q2, a meaningful improvement from a negative $200 million in the same period last year [1, 2, 5]. Boeing's adjusted loss per share was 76 cents, starkly wider than analysts' expected 30-cent loss per share [1, 2, 5].

Boeing is continuing to ramp up production of its 737 MAX, which currently rolls out at a rate of 47 planes per month with plans for further increases [1, 2, 5]. Capital expenditures also rose, primarily to expand 787 production in South Carolina and military jet manufacturing near St. Louis, Missouri [1, 6].

To accelerate the Air Force One deliveries, which were originally scheduled for late 2024, Boeing and the U.S. Air Force have agreed to switch certification standards from FAA to military specifications. The first modified Air Force One aircraft is now targeted for delivery in mid-2028, with the second expected by mid-2029 [3, 8, 4, 7]. Due to continuous delays, a 747-8 donated by Qatar is currently serving as a temporary presidential aircraft and will soon receive upgrades [1, 6, 7].

FAA has also issued a proposed directive to inspect and fix certain 737 MAX passenger seat installations over safety concerns, adding scrutiny to Boeing's commercial aircraft operations [6, 9].

Boeing CEO Kelly Ortberg said, "While we're making progress on our development programs, you're never done until you're done," and added, "While two quarters don't make a year, if we work together and stay focused on safety, quality and on-time performance — we'll improve our competitiveness and set ourselves up for a big second half" [2].

Boeing’s next major milestone will be meeting the updated delivery timeline for the first Air Force One in 2028 amid ongoing program challenges.