Boeing disclosed Wednesday that it has misplaced a whopping $1.1 billion in prices associated to its cope with the Trump administration to switch two 747 jumbo jets to function Air Drive One — and CEO Dave Calhoun admitted the aviation large “most likely” shouldn’t have minimize the deal within the first place.
Much more losses on the Air Drive One contract could possibly be coming in future quarters, Boeing warned in a regulatory submitting.
Air Drive One is the official designation for any airplane carrying the president of the USA.
“Air Drive One I am simply going to name a really distinctive second, a really distinctive negotiation, a really distinctive set of dangers that Boeing most likely should not have taken,” Calhoun mentioned on a name with analysts.
“However we’re the place we’re, and we will ship nice airplanes,” Calhoun mentioned, shortly after Boeing reported a loss for the primary quarter of 2022.
“And we will acknowledge the prices related to it.”
Boeing on Wednesday disclosed a web lack of $1.2 billion for the primary quarter, with a cost of $660 million related to delays and better prices for the Air Drive One program.
The corporate mentioned the first-quarter cost on the Air Drive One program brings the whole loss tied to it to greater than $1.1 billion.
“Danger stays that we could also be required to document extra losses in future intervals,” Boeing mentioned in a securities submitting.
Boeing’s deal for the Air Drive One jets was minimize by then-CEO Dennis Muilenburg and then-President Donald Trump in February 2018.