Trump hands Boeing a multibillion-dollar lifeline with F-47 fighter jet deal
Trump announces F-47 fighter jet deal with Boeing (Photo: Getty Images)
US President Donald Trump has awarded Boeing a major defense contract to develop the Air Force’s most advanced fighter jet, the F-47, offering the struggling aerospace giant a critical boost, Reuters reports.
The F-47 is part of the Next Generation Air Dominance (NGAD) program and will replace the Lockheed Martin F-22 Raptor.
The sixth-generation aircraft will fly alongside drones and include cutting-edge technologies such as stealth, enhanced sensors, and advanced propulsion systems. "Compared to the F-22, the F-47 will cost less and be more adaptable to future threats – and we will have more of the F-47s in our inventory," said US Air Force Chief of Staff General David Allvin.
Boeing’s victory over Lockheed Martin secures a contract valued at over $20 billion for engineering and development — with future orders potentially totaling hundreds of billions over the lifetime of the program. Shares of Boeing surged nearly 5% following the announcement, while Lockheed’s fell by almost 7%.
"The win is a major boost for the company, which has struggled with cost overruns, schedule delays, and execution on other DoD programs," noted TD Cowen analyst Roman Schweizer.
From crisis to comeback
In recent years, Boeing has faced mounting challenges, from a $7 billion overrun on its KC-46 tanker project to a $2 billion loss on its Air Force One modernization contract. The commercial division also suffered setbacks, including the grounding of 737 MAX jets and an $11.8 billion loss in 2024.
"A program of this size and complexity requires careful oversight to make sure it doesn't fall behind or have cost overruns," said Senator Mark Kelly, a former Navy pilot.
Despite Lockheed’s statement expressing disappointment, the public nature of Trump’s announcement may limit the chances of a formal protest. Meanwhile, critics like Elon Musk have questioned the long-term value of high-end crewed fighters, favoring drones as more cost-effective solutions.
Ironically, while the F-47 contract signals a major win for Boeing, upcoming Trump-imposed tariffs on raw materials could threaten the company’s supply chain and shake the entire aerospace industry.
