New 737 Max line added as FAA loosens restrictions
Boeing posted a $428 million loss in the second quarter of 2026, the company announced Tuesday, with the figure more than double what analysts had expected. The loss was driven primarily by cost overruns on the company’s contract to build two new presidential Air Force One aircraft.
Boeing agreed in 2018 to build the two planes at a fixed price of $3.9 billion, but production and certification expenses added an additional $280 million to costs in the second quarter alone, according to The New York Times. The planes were originally scheduled for delivery in 2024 but have been pushed back to 2028.
The company pointed to signs of improvement in other areas of its business. Boeing began a fourth production line this month for the popular 737 Max. The new line is expected to help Boeing increase output and work through a $715 billion order backlog, a large portion of which consists of 737 Max orders.
The company also said one measure of cash flow turned positive in the quarter, signaling progress toward reducing its debt load.
The Federal Aviation Administration has loosened some restrictions on Boeing that it imposed after design flaws in the 737 Max contributed to two fatal crashes in 2018 and 2019 that killed 356 people. In 2024, a Boeing plane’s panel door blew off mid-flight, which the company attributed to design flaws as well.
“Our focus has been on restoring trust and we are now building on that through a sustained focus on safety, quality, and on-time performance,” Boeing President and CEO Kelly Ortberg said in a statement. “While there is more work ahead in the second half of the year, the momentum we are building continues to move Boeing in the right direction.”
Boeing reported the $428 million loss reflects the financial burden of cost overruns and production issues even as the company tries to stabilize operations and rebuild confidence with regulators and customers.