Six weeks into the new fiscal year, Boeing has not yet delivered any of the 15 KC-46 tankers it is obligated to provide to the U.S. Air Force by next September. Service officials have not specified when these deliveries will occur, but they anticipate that Boeing will adhere to its contractual obligations.
As of now, an Air Force spokesperson confirmed that “no KC-46s have been delivered in FY 25.” The last tanker from fiscal 2024 was delivered on September 27 and was subsequently ferried to an operational unit on October 4.
Production delays began when thousands of Boeing workers went on strike in September, which lasted for seven weeks. After negotiations, union workers voted to end the strike, allowing Boeing to restart production of military aircraft, including the 767-based KC-46 tanker and the Navy’s 737-based P-8 maritime aircraft. Although some employees are expected to resume work soon, Boeing stated that full production might not restart for several weeks.
The strike had serious financial consequences for Boeing, contributing to $6 billion in losses during the third quarter, with $2 billion attributed to the defense sector alone. When asked about the timeline for resuming production and deliveries of the KC-46s, a Boeing spokesperson indicated that more information would be provided “in the coming days.”
As the Air Force awaits the arrival of its tankers, officials suggested that the KC-46 program may be extended by two years, pushing the completion date to 2031. This extension comes after numerous delays in deliveries and a series of setbacks related to the tanker’s development, which has cost Boeing over $8 billion. Additional challenges continue to arise, complicating the situation further.
While it remains uncertain when Boeing’s fixed-price contracts will start yielding profits, the company is working to improve its financial situation by potentially scaling back operations. Boeing’s CEO, Kelly Ortberg, commented in October that the company aims to simplify its focus, stating, “I think that we’re better off doing less and doing it better than doing more and not doing it well.”
In a related move, Boeing announced plans to cut its workforce by 10 percent, equating to approximately 17,000 positions, as part of its strategy to “position” itself for the future.
