Cost overruns at Boeing’s defence, space and security unit have hobbled a recovery for the company as it attempts to come out of successive crises by cashing in on rising air travel demand.

The planemaker said it took charges on its Air Force One and refuelling tanker programme, among others.

“Our revenue and earnings were significantly impacted by losses on fixed-price development programmes in our defence business, driven by higher estimated manufacturing and supply chain costs,” Boeing chief executive Dave Calhoun said in a message to employees.

Boeing’s shares were down 0.5% at US$145.92 in pre-market trade shortly before the opening bell.

Rising cost pressures over the last few months have hampered fixed-price contracts for US aerospace and defence firms, prompting an industry body the US Congress for inflationary relief.

Boeing has Steve Parker to help turn around loss-making programmes in its defence unit, Reuters reported yesterday.

On the commercial side, it handed over 86 MAX jets in the quarter, or just shy of 30 a month, according to company data.

It needs to deliver roughly 44 jets per month in the fourth quarter to meet its 737 MAX delivery target of “low 400s” this year.

The company said while demand for commercial planes remains strong, supply-chain constraints continue to challenge the industry.

General Electric Co said yesterday the aviation industry is still facing shortages of labour, parts and raw materials, though some of the constraints are showing “early signs” of easing.

To ramp up production, Boeing said it has added more than 10,000 employees this year and is investing in training and development to improve productivity.

Adjusted loss per share in the third quarter widened to US$6.18 from US$0.60 a year ago.

Quarterly revenue rose 4% to US$15.96 billion.

Demand at the global services business that provides spare parts and services such as jet conversions was a bright spot in the quarter through September, with revenue rising 5%.