Is Boeing (NYSE:BA) About to Lose the Air Force One Order?

Is Boeing (NYSE:BA) About to Lose the Air Force One Order?
Boeing Stock Overview
Boeing (BA) has faced a series of setbacks in recent months, with order cancellations and delivery delays weighing on the aerospace giant. Chinese airlines have recently declined several completed Boeing aircraft, and Ryanair (RYAAY) has threatened to cancel hundreds of orders. Now, the company’s high-profile Air Force One program is under renewed scrutiny as significant delays and cost overruns push deliveries to 2027 and beyond.
Amid these challenges, reports indicate that former President Donald Trump, frustrated by the slow progress on the new Air Force One models ordered during his administration, is exploring alternatives. Trump is reportedly considering refurbishing a former Qatari government Boeing 747, with defense contractor L3Harris Technologies tapped to upgrade the jet for potential presidential use. This move follows an April meeting between Trump and Boeing CEO Kelly Ortberg, after which Trump began looking into the refurbished aircraft as a temporary solution.
However, sources clarify that this refurbished jet is not intended to replace Boeing’s official Air Force One project. Instead, it would serve as a stopgap until Boeing completes the new aircraft. The upgraded 747 could be ready for service as soon as this fall, providing a temporary bridge while Boeing works to resolve ongoing production issues.
FAA Directive and Aircraft Safety
Compounding Boeing’s difficulties, the Federal Aviation Administration (FAA) has issued a new airworthiness directive targeting several Boeing 767 models. The directive addresses corrosion concerns in satellite communications (SATCOM) components, specifically the high-gain antenna adapter plate. Corrosion in these parts, particularly the nutplates along the adapter plate’s edges, could lead to parts detaching mid-flight—a serious safety risk.
The FAA now requires “repetitive detailed inspections” for affected 767-200, 767-300, 767-300F, and 767-400ER aircraft. While the directive impacts about 597 U.S.-registered planes—roughly 0.27% of the nation’s 220,000 aircraft—it adds to the mounting scrutiny over Boeing’s manufacturing and quality control processes.
Market Reaction and Investment Perspective
The ongoing Air Force One delays and safety directives have sparked mixed reactions in the market. Some investors are concerned about the reputational and financial impact on Boeing, especially as competitors may seek to capitalize if the Air Force One contract is reevaluated. Despite these headwinds, Boeing shares rose nearly 2% in Friday afternoon trading, suggesting some investor confidence in the company’s long-term prospects.
Wall Street analysts currently rate Boeing as a Moderate Buy, with 14 Buys, three Holds, and one Sell in the past three months. The average price target of $200.47 per share implies a potential upside of 7.43%, following a 3.61% gain over the past year.
Outlook
Boeing’s resilience and strategic focus on addressing safety and production challenges remain critical as it navigates this turbulent period. The company’s ability to deliver on key contracts like Air Force One will be closely watched, with its reputation and future revenue at stake. For investors, Boeing’s commitment to innovation and the broader recovery in aviation could offer long-term opportunities—provided the company can steer through its current turbulence.

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