Boeing continues to grapple with significant challenges as the delivery of two new 747-8 aircraft, designated to serve as Air Force One, faces further delays. Originally contracted in 2018, the planes were scheduled for delivery by December 2024. However, due to ongoing supply chain issues and other complications, the timeline has been extended multiple times, with the latest projections pushing the delivery to 2029 or later. Former President Donald Trump has expressed his dissatisfaction with Boeing over these delays, highlighting the urgency and complexity involved in crafting these specialized jets.
The protracted timeline for these aircraft deliveries represents another hurdle for Boeing, which has experienced a tumultuous year. The company's stock has decreased by approximately 11% over the past year, despite a modest 2% increase year-to-date. Following the announcement of the latest delay, Boeing's stock price hovered around $180 per share. The company's recent lack of profitability has led to investor caution, though a median price target of $200 per share suggests expectations of a potential 10% rise.
Boeing CEO Kelly Ortberg had previously indicated efforts were underway to expedite delivery, targeting an earlier date than initially anticipated. Despite these assurances, the newest delay adds uncertainty to the situation and may necessitate further strategic adjustments by Boeing. The contract for these aircraft, awarded several years ago, was established as a fixed price agreement, adding pressure on Boeing to manage costs amid shifting timelines.
The delay has not gone unnoticed at the highest levels. During a recent interaction aboard Air Force One, Trump openly criticized Boeing for the protracted timeline, stating his dissatisfaction with the company’s progress. He emphasized the extended duration typically required for constructing an Air Force One jet, hinting at possible repercussions or alternative actions if Boeing fails to meet contractual obligations.
Boeing's current challenges underscore broader issues within the aerospace industry, exacerbated by global supply chain disruptions. The intricate process of assembling highly specialized aircraft like Air Force One involves more than just standard production timelines, requiring precision and adherence to stringent specifications.