The replacement for the US president's Air Force One is now expected to cost nearly $7 billion, with Boeing absorbing more than $3 billion in losses under its fixed-price contract.

Building the new generation Air Force One presidential jets has become a painful financial thorn in the side of Boeing.

Boeing took a $280 million charge on its long-delayed Air Force One program.

Boeing reported a larger-than-expected second-quarter loss on Tuesday as higher costs linked to the delayed Air Force One replacement programme weighed on its results.

Boeing posted a wider-than-expected Q2 loss after a $280 million Air Force One charge, but shares rose 5% as positive free cash flow and higher aircraft production signaled…