Boeing announces new $67 million tanker charge

(Editor’s Note: This story has been updated with additional information from Boeing's third-quarter earnings call.)

Boeing today announced it took another $67 million KC-46 tanker charge in the third quarter of 2020, bringing its out-of-pocket costs for the program to nearly $4.8 billion.

The new cost growth follows a $151 million charge announced in July that was attributed to "additional fixed-cost allocation resulting from lower commercial airplane production volume due to COVID-19."

The company also took an $827 million hit in April, which it linked mostly to costs associated with its plan to upgrade the KC-46 remote visual system. Boeing and the Air Force reached the agreement this spring.

Boeing CEO Dave Calhoun said in the company's third-quarter earnings call he is optimistic about the trajectory of the KC-46 program.

"The tanker has been a drag for us for like three or four years in every way you can think of with respect to investors," Calhoun said. "But we are beginning to clear the hurdle with our customer with respect to its performance in their fleet and then their need for that tanker."

He continued: "That whole relationship I believe, will begin to transition next year. And as opposed to being a drag on our franchise . . . I believe it will become a strength in our franchise."