Boeing loses $1.2B in first quarter, including $660M on Air Force One

The Boeing Building, international headquarters for the Boeing Company, in Chicago on March 31, 2011. Boeing said Wednesday it had a net first quarter 2022 loss of $1.2 billion. File Photo by Brian Kersey/UPI | License Photo

April 27 (UPI) — Boeing reported Wednesday that it lost $1.2 billion in the first quarter of 2022. That includes a $660 million charge related to delays and higher costs in modifying new Air Force One planes.

The company said in a press statement that first-quarter revenue was $14 billion.

“While the first quarter of 2022 brought new challenges for our world, industry and business, I am proud of our team and the steady progress we’re making toward our key commitments,” Dave Calhoun, Boeing president and CEO, said in the press statement.

Boeing said it has lost $1.1 billion in a deal with the Trump administration to modify two 747 jumbo jets for Air Force One use starting in 2024 and warned that additional losses may be reported in the future.

According to CNBC, Calhoun said during a call with analysts that the deal with the Trump administration probably shouldn’t have been done. He said it was a very unique set of risks that Boeing probably shouldn’t have taken.

Boeing’s statement said first-quarter revenue for its commercial planes was $4.2 billion. The statement said the operating margin of 20.6% “reflects abnormal costs and period expenses, including charges for impacts of the war in Ukraine and higher research and development expense.”

Boeing said it has increased production of the 737 MAX airplane and has made important progress on the 787 by submitting a certification plan to the FAA.

“Despite the pressures on our defense and commercial development programs, we remain on track to generate positive cash flow for 2022, and we’re focused on our performance as we work through certification requirements and mature several key programs to production,” Calhoun said in the press statement.