Boeing Co. expects to deliver the next-generation Air Force One jets by 2028, a timeline that the company warns will lead to further cost growth. Steve Parker, CEO of Boeing Defense, Space & Security, confirmed the delivery target, citing wiring, structural work, and certifications as factors driving the increased expenses. The manufacturer affirmed it remains on track for the 2028 deadline despite these challenges.

The program is currently running four years behind its original schedule. Boeing was awarded a $3.9 billion contract in 2018 to build the aircraft, but total costs have since surpassed $5 billion. The delay and budget overruns highlight the complexity of the modifications required for the presidential aircraft.

Cost Growth and Technical Challenges

Parker attributed the rising costs to the extensive technical work required to bring the aircraft up to presidential standards. The scope includes complex wiring upgrades, structural modifications, and rigorous certification processes. These technical hurdles have contributed to the program falling behind schedule and exceeding initial budget estimates.

Industry Partnerships and Advocacy

Separately, Boeing announced a partnership with Deutsche Lufthansa AG and Rolls-Royce Holdings PLC to conduct fuel-efficiency and noise-reduction flight testing. The tests will utilize the 787-9 Dreamliner aircraft powered by Rolls-Royce Trent 1000 engines. Additionally, Boeing joined other airlines, manufacturers, airports, and unions in urging lawmakers to pass a $20 billion funding package for air traffic control upgrades.

Boeing Co has partnered with Deutsche Lufthansa AG and Rolls-Royce Holdings PLC ADR to conduct flight tests aimed at improving aircraft fuel efficiency and reducing noise. The collaboration will evaluate technologies on a Boeing 787-9 Dreamliner powered by Rolls-Royce Trent 1000 engines, serving as Boeing’s 2026 ecoDemonstrator Explorer. The aircraft is scheduled for delivery to Lufthansa after testing concludes. Boeing shares traded about 1% lower on Thursday following the announcement.

Flight Tests Begin Soon

Testing is scheduled to begin later in July at Boeing’s Glasgow, Montana, site and continue through mid-August. The program will assess Boeing’s Next Generation Inlet, a shorter engine inlet featuring advanced acoustic treatments. Boeing stated the design could reduce aircraft weight and drag while supporting the integration of more fuel-efficient engines on future platforms without compromising acoustic performance.

Operational Enhancements

The companies will also test modified departure and arrival procedures using Intelligent Operations flight paths. Algorithms generate these routes using multiple data sources to identify opportunities to reduce fuel consumption and community noise around airports. Boeing Chief Technology Officer Lane Ballard noted that these enhancements have the potential to make airplanes more valuable to partners and customers.

Recent Delivery Performance

Separately, Boeing reported 171 commercial aircraft deliveries in the second quarter, bringing 2026 deliveries to 314 units. The 737 program accounted for 129 deliveries in the quarter and 243 year-to-date. The company also delivered 35 defense aircraft and systems during the quarter, raising year-to-date defense deliveries to 65 units. The AH-64 Apache program recorded the highest defense volume with 15 deliveries in Q2.