Boeing Q1 results reveal T-7 trainer trouble
The T-7A Red Hawk is scheduled to achieve IOC with the US Air Force in 2024. (Photo: Boeing)
Boeing's T-7 next generation trainer programme has suffered financial difficulties linked to supplier problems and COVID-19 complications.
Boeing's T-7 advanced trainer has been troubled by financial problems with the manufacturer posting a $367 million charge for the programme, caused by supplier negotiations influenced by supply chain problems, COVID-19 issues and inflationary pressures.
The charge was declared by the manufacturer in its Q1 2022 results, published on 27 April and which also showed that defence related activities saw a drop in revenue to $5.5 billion - a 24% decrease from quarterly figures recorded for the same period in 2021.
On a more positive note, the manufacturer pointed to a number of key contracts and manufacturing milestones secured or achieved over the course of Q1 2022, including, an order for six USSOCOM MH-47G Block II Chinook helicopters; the building of New Zealand's first P-8A MPA and completion of the 400th T-7A Red Hawk test flight.
Shephard's Defence Insight suggests that a procurement decision covering two low-rate production and eight rounds of full-rate production will be approved by the US DoD for the T-7A effort after 2023, with the USAF currently on course to buy 351 aircraft.
Boeing's military aircraft deliveries were broadly in line with numbers recorded in Q1 2021. The new figures revealed 22 AH-64E Apache attack helicopters were made, alongside seven CH-47F Chinooks, four F/A-18 fighters, four KC-46 tankers, three P-8 MPAs and one F-15 jet.
Related Equipment in Defence Insight
More from Defence Notes
-
![Companies’ results boom as countries dig deep to buy missiles and air defence systems]()
Companies’ results boom as countries dig deep to buy missiles and air defence systems
Air defence systems are continuing to appear top of countries’ shopping lists but broadly across different capabilities it is a sellers’ market, as demonstrated by backlogs and double-digit percentage point growth.
-
![Forging strong partnerships for warfighting communications in space (Studio)]()
Forging strong partnerships for warfighting communications in space (Studio)
Mike Moran, Director of US Government Business at Amazon Project Kuiper Government Solutions, highlighted the evolution of space as a critical warfighting domain at the Defence in Space Conference (DISC) 2025, held this week in London.
-
![Details revealed on Germany’s big spending plans]()
Details revealed on Germany’s big spending plans
In May this year, German Chancellor Friedrich Merz said the government plans to position Germany as “Europe's strongest conventional army”. A new blueprint outlines how this is going to occur through massive investment.
-
![European Council to deliver at “pace and scale” on European defence readiness 2030 roadmap]()
European Council to deliver at “pace and scale” on European defence readiness 2030 roadmap
Two of the concrete projects outlined in the readiness report, the European Air Shield and Space Shield, will aim to be launched by Q2 2026.
-
![Malaysia’s defence budget sets out major procurement goals for 2026]()
Malaysia’s defence budget sets out major procurement goals for 2026
The country has allocated RM21.70 billion for defence spending next year, with some major procurements set to be initiated across the country’s army, navy and air force.
-
![GAO highlights the need for more commercial data and availability improvements]()
GAO highlights the need for more commercial data and availability improvements
The US Government Accountability Office recently released two reports; one into the availability of selected equipment and another looking at how the government gets data and intellectual property rights through contracting.
