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Boeing records $2.31 billion reach-forward losses on tanker program over 3 years

FILE PHOTO: The Boeing logo is pictured at the Latin American Business Aviation Conference & Exhibition fair (LABACE) at Congonhas Airport in Sao Paulo, Brazil August 14, 2018. REUTERS/Paulo Whitaker/File Photo

(Reuters) – Boeing said on Friday it had recorded reach-forward losses of $2.31 billion related to the U.S. Air Force KC-46A tanker program over 2016, 2017 and 2018.

The planemaker said in a filing that in 2018, it had recorded reach-forward losses of $736 million on the contract, reflecting higher estimated costs related to certification, flight testing and change incorporation on aircraft, among other things.

The U.S. Airforce recently accepted the long-delayed first delivery of the KC-46 tanker jet made by Boeing. The delays and fixes for the program have been costly for Boeing and the company had recorded charges on the tanker program.

Reporting by Divya R in Bengaluru; Editing by Anil D’Silva

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