Boeing (NYSE: BA) has been burned more than once by its capped-price development contract for the KC-46 Pegasus aerial refueling tanker. Due to a variety of blunders and unexpected complications, development costs have soared far above the contract cap of $4.824 billion. Boeing has been forced to cover the cost overruns out of its own pocket.
Boeing has faced substantial cost overruns in developing the KC-46 Pegasus tanker. Image source: Boeing.