Boeing has taken a further $280 million charge on the troubled VC-25B Air Force One presidential aircraft programme, despite reporting stronger second-quarter financial results driven by rising commercial aircraft deliveries and improving cash generation.
The US planemaker delivered its strongest quarterly financial performance in more than a year as higher commercial aircraft deliveries helped the manufacturer increase revenue, improve cash generation, and reduce losses, while its order backlog climbed to a record level.
The aerospace giant reported second-quarter revenue of $24.6 billion, an 8% increase on the same period last year, supported largely by stronger output from its commercial aircraft division.
Boeing is still making a loss, in part due to the VC-25B Air Force One programme
Although the company remained loss-making, its net loss narrowed to $428 million, compared with $612 million a year earlier, while operating profit returned to positive territory.
This was exacerbated by the $280 million in losses on the VC-25B programme, which Boeing said was primarily driven by an investment in additional production and certification represidential aircraft in 2028
However, the results show that Boeing’s recovery is gathering pace following years of production disruptions, certification challenges, and quality issues that have grounded aircraft and dented its commercial business.
Ortberg hails progress towards ‘stable operations’
Chief executive officer Kelly Ortberg said operational stability continued to improve as the manufacturer focused on restoring confidence among regulators, airlines and investors.
“I’m very pleased with the progress our team is making as we execute our plan. Our operations are more stable, and key certification programs remain on plan. Our focus has been on restoring trust, and we are now building on that through a sustained focus on safety, quality, and on-time performance,” said Ortberg.
“While there is more work ahead in the second half of the year, the momentum we are building continues to move Boeing in the right direction.”
737 production ramp-up gathers pace
Commercial Airplanes generated $11.8 billion in quarterly revenue after delivering 171 aircraft, up from 150 in the same quarter of 2025.
The division also reduced its operating loss. The manufacturer has continued increasing output of its best-selling 737 family, beginning the transition to a production rate of 47 aircraft per month during the quarter.
Boeing also activated low-rate production on the new 737 North Line in July as it prepares for further increases.
Meanwhile, two long-delayed variants of the Max family reached an important milestone after certification flight testing concluded on both the 737 MAX-7 and 737 MAX-10.
Boeing continues to expect certification for both aircraft before the end of 2026, with first customer deliveries targeted for 2027.
Progress was also reported on the 777X programme after the US Federal Aunder the latest Type Inspection Authorisation
Boeing still expects the widebody aircraft to enter service in 2027.
Strong customer demand continued to bolster the manufacturer’s order book. During the quarter, Boeing secured 246 net commercial aircraft orders, including commitments from Korean Air, Delta Air Lines, and aircraft lessor SMBC Capital.
Commercial aircraft backlog grew to more than 6,200 aircraft, valued at approximately $597 billion, contributing to an overall company backlog of $715 billion, the highest in Boeing’s history.
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