Northrop Grumman wants additional funding to offset up to $1.2bn in losses in production of B-21 Raider nuclear bomber

Northrop Grumman unveiled the next-generation B-21 Raider nuclear bomber late last year. The company is now seeking additional funding to offset the costs that will be incurred in producing the strategic aircraft.

Here's What We Know

The announcement was made by Kathy Warden, the CEO of Northrop Grumman during an investor conference. The company started talking about losses back in January 2023. Losses are expected to reach $1.2 billion over a decade.

Northrop Grumman is seeking additional funding to offset costs triggered by the COVID-19 pandemic and high inflation. They will arise during small-scale production of the first batches of B-21 Raider when the fixed-price contract is signed.

Cathy Worden noted that the company is working with the government to address the problem. Congress has allocated $1 billion to the Pentagon to compensate for inflationary problems, but it is not known how the Defense Department intends to distribute the funds.

What we do know is that Boeing bids for the money. The company wants to make up for losses from COVID-19 and inflation, which occurred during the construction of two new Air Force One planes.

Source: Defence One