An aerial view of a Boeing KC-46 Pegasus aerial refueling tanker parked at King County International Airport-Boeing Field in Seattle, Washington, U.S, June 1, 2022. REUTERS/Lindsey WassonCo. will take additional charges to the KC-46 tanker program due to a supplier quality issue with the center fuel tank, the company's finance chief said Wednesday.
While 767 freighter deliveries "will recover in the second quarter," tanker deliveries will take longer "but we will recover the year," West said at the Bank of America Global Industrials Conference, adding that the issue would not impact Boeing's annual cash flow target of $3 billion to $5 billion in 2023.
as a supplier had not completed processes related to cleaning and paint adhesion on the center fuel tanks. The primer inside the fuel tank must be removed and repainted before Boeing can deliver the aircraft. On tankers, Boeing is locked into a fixed-price development contract where it is responsible for paying all expenses above the award's $4.9 billion cost ceiling. The company has taken $6.8 billion in charges since the U.S. Air Force awarded the contract in 2011.