F-35 Jet Flew 1 Million Hours: Cost Increase Retains Below Inflation Adjustment
F-35 Fighter Unit Price Below Inflation for Upcoming Lot, Says Lockheed Martin
AURORA, Colo.—Lockheed Martin has revealed that the unit price for the latest lot of the F-35 fighter will be below the rate of inflation, according to a statement made by Chauncey McIntosh, the company's vice president and F-35 general manager, on March 3. The announcement coincides with the disclosure that both the F-35 and its engine, the F135, have surpassed 1 million flight hours.
During a speech at the AFA Warfare Symposium, McIntosh stated, "We were able to keep the price of the airplane under that inflation curve." Although he did not disclose the exact price of the F-35 airframe for Lot 18, Lockheed and the Joint Program Office (JPO) reached a preliminary agreement on this lot in November 2024, worth $11.8 billion for 145 aircraft. The JPO will reveal the airframe unit cost once the contract is finalized, a process expected to occur in the second quarter of 2025.
When it comes to the Lot 18 engines, however, no preliminary agreement has been reached. Industry and government sources predict that this deal will not materialize until much later in the year due to ongoing negotiations between the JPO and Pratt & Whitney over the price. The previous lot's contract had the cost of the F-35A airframe at $75 million per airframe without the engine, and it is estimated that the cost of the engine for Lot 18 will be around $15 million, bringing the total average cost of a F-35 with an engine to around $97 million.
"Inflation has skyrocketed," McIntosh acknowledged, citing rising material costs, labor rates, and supply chain difficulties as factors contributing to higher costs in building the F-35. Despite these challenges, he expressed pride in Lockheed's ability to balance affordability with quality.
The F-35 is currently under scrutiny due to Defense Secretary Pete Hegseth's call for eight percent of potential budget cuts to fund other priorities, and significant criticism from Presidential adviser Elon Musk, who considers the program obsolete. However, McIntosh is optimistic about the future of the F-35, stating, "The finalized contract is now the milestone that we're shooting towards."
Both Lockheed and Pratt & Whitney announced on March 3 that the F-35 fleet and its F135 engines, respectively, have achieved 1 million hours of operations across all variants of the fighter. Lt. Gen. Michael Schmidt, program executive officer for the F-35 and head of the JPO, lauded the achievement as a testament to the unwavering dedication and resilience of all those involved in the program. Additionally, Lockheed highlighted the F-35's crucial role in maintaining air superiority and working in tandem with other aircraft platforms, including the control of drones like the U.S. Air Force's future Collaborative Combat Aircraft.
- The F-35 fighter's unit price for the upcoming Lot 18 will be below the rate of inflation, according to Lockheed Martin's vice president and F-35 general manager, Chauncey McIntosh.
- Despite inflation's rise due to factors like material costs, labor rates, and supply chain difficulties, Lockheed Martin has taken pride in balancing affordability with quality in building the F-35.
- The Joint Program Office (JPO) is yet to reach a preliminary agreement on the Lot 18 engines, and industry sources predict negotiations with Pratt & Whitney will continue late into the year.
- The cost of the F135 engine for Lot 18 is estimated to be around $15 million, bringing the total average cost of a F-35 with an engine to around $97 million.
- Investing in the military aircraft industry, particularly in companies like Lockheed Martin and Pratt & Whitney, could be a significant business opportunity given the ongoing development and production of advanced aircraft like the F-35.
- The F-35, being a crucial part of military warfare, has found its place in modern aerospace technology, maintaining air superiority and working in tandem with other platforms, including drones like the US Air Force's future Collaborative Combat Aircraft.
- The F-35's role in air warfare and air force operations, paired with the 1 million flight hours it has achieved, has earned praise from program executives and industry leaders, despite criticism from individuals like Defense Secretary Pete Hegseth and Presidential adviser Elon Musk.
