KC-46A, Air Force One, T-7 and MQ-25 Cause Problems

Citing “technical challenges” with the VC-25B Air Force One, KC-46A Pegasus, T-7A Red Hawk and MQ-25 Stingray programmes, Boeing has reported a loss of almost $3.3 billion for the third quarter of 2022, a loss 25 times greater than the $132 million it recorded in the same quarter last year.

The company faces a $4.4 billion loss year-to-date, fuelled largely by the $3.7 billion loss of its defence sector in that period. Revenues in the sector also fell for the third quarter – to $5.3 billion from last year’s $6.6 billion. The KC-46 programme constitutes a major component of the company’s woes, with over $700 million in charges in the first half of 2022, in addition to more than $5.4 billion in programme charges to date.

“Nearly every industry is navigating broad supply chain, inflation, labor and macroeconomic challenges — and we’re certainly no different […] We’re realistic about the environment we face and are taking comprehensive action,” said Boeing President and CEO, Dave Calhoun, in a message to employees circulated on 26 October. “We remain in a challenging environment and have more work ahead.”