US President Donald Trump has awarded Boeing a lucrative contract to develop the US Air Force’s next-generation fighter jet, securing a major victory for the aerospace giant. The contract is part of the Next Generation Air Dominance (NGAD) program, designed to replace the Lockheed Martin F-22 Raptor with an advanced, crewed aircraft that will operate alongside drones.
The new jet, which will be named the F-47, was announced by President Trump during a press conference at the White House. While specific design details remain classified, the aircraft is expected to feature cutting-edge stealth capabilities, advanced sensors, and next-generation engines.
The news sent Boeing’s stock surging by 5%, while Lockheed Martin, the losing bidder, saw its shares drop nearly 6%.
Major Boost for Boeing
Winning the NGAD contract marks a significant turnaround for Boeing, which has faced challenges across both its commercial and defense sectors. The deal is particularly important for the company’s fighter jet production facility in St. Louis, Missouri, and will provide a long-term boost to its military aviation business.
The engineering and manufacturing development contract is valued at over $20 billion, with the potential for hundreds of billions of dollars in orders over the program’s multi-decade lifespan. The NGAD initiative, designed as a “family of systems,” aims to counter global threats, particularly from China and Russia.
Boeing has struggled in recent years with delays in 737 MAX production, as well as costly setbacks in defense projects. The KC-46 mid-air refueling tanker program has exceeded $7 billion in cost overruns, while a separate contract to upgrade two Air Force One jets has led to $2 billion in losses.
Setback for Lockheed Martin
For Lockheed Martin, the loss of the NGAD contract raises concerns about its future in high-end fighter development. The company, which was already eliminated from the competition to build the Navy’s next-generation carrier-based stealth fighter, now faces increasing uncertainty.
The shift towards drone warfare has also cast doubt on the long-term viability of expensive, crewed fighter jets. Billionaire entrepreneur Elon Musk has been among those questioning the need for traditional fighter aircraft, arguing that autonomous drones may be a more effective and cost-efficient solution.
While Lockheed could protest the decision, the high-profile announcement by President Trump at the White House may make it politically challenging for the Maryland-based defense firm to contest the award publicly.
The NGAD program represents the future of US air superiority, and Boeing’s win positions it at the forefront of sixth-generation fighter jet development, marking a critical moment in the company’s resurgence in the defense sector.
