Boeing receives $2.25B Air Force tanker contract

Arlington-based Boeing Co. will help the Air Force expand its fleet of KC-46A Pegasus tanker aircraft under a $2.25 billion contract modification announced by the Pentagon Friday.

The award covers the service’s ninth production lot and includes 15 of the tankers as well as data, subscriptions and licenses. To date, 68 KC-46A Pegasus tankers have been delivered and are operationally deployed worldwide, and the Air Force is on contract to buy 128 of the tankers.

The KC-46A Pegasus delivers fuel and data to the fleet and also provides cargo, personnel and aeromedical transportation. In September 2022, the Air Force Air Mobility Command approved the KC-46A for global operations including combat deployment.

“The combat-ready KC-46A is transforming the role of the tanker for the 21st century,” James Burgess, Boeing vice president and KC-46 program manager, said in a statement. “We’re proud to work side-by-side with the Air Force ensuring the Pegasus provides unmatched capabilities and continues to evolve for the U.S. and its allies’ global mission needs.”

Boeing, ranked No. 60 on the Fortune 500 in 2022, builds the Pegasus aircraft on its 767 production line in Everett, Washington. The company said last week that it expects to hire 10,000 employees in 2023 to meet production needs, including increased deliveries of its 737 Max aircraft, Reuters reported.