New Delhi, July 20 -- WASHINGTON - Boeing's defense unit chief said he expects additional cost growth on the company's contract to build two new presidential aircraft, while committing to a mid-2028 delivery for the first VC-25B. The announcement signals that Boeing (BA) has not yet contained the financial damage from a fixed-price program that has already cost the company approximately $2.8 billion in charges.

Steve Parker, president of Boeing Defense, Space and Security, told reporters that work remaining in final assembly, wiring, structural finishing, and aircraft certification will generate further losses that the company cannot recover under the contract's fixed-price structure. He declined to specify what the additional overruns w...