The airplane manufacturer Boeing reported the company lost $1.64 billion during the third quarter of 2023 due to fewer deliveries of its best-selling plane coupled with more money dedicated to building two new Air Force One presidential aircraft.

According to the Associated Press, the company was forced to lower its forecast of 737 Max production from between 400 and 450 planes to 375 to 400 aircraft.

Boeing said that it expects the production and deliveries of 737 jets to slow down as it performs inspections and does additional work to fix the pressure-sealing section of the planes. Boeing is currently working with its supplier, Spirit AeroSystems, to correct improperly drilled rivet holes in the fuselage.

Boeing said that it lost $482 million during the quarter on a contract to build two new presidential jets for the Air Force because of higher estimated manufacturing costs. The company also posted a $315 million loss on a satellite contract.

Still, company CEO David Calhoun said the organization remains on track to meet its long-term financial goals.

“That demand will underpin our recovery, but it’s on us to perform,” Calhoun wrote in a note to employees, claiming that demand for Boeing planes remains strong. “I have heard those outside our company wondering if we’ve lost a step. I view it as quite the opposite.”

Boeing was able to deliver 105 commercial planes during the third quarter, which was down from the 112 aircraft it delivered during the same period in 2022. Deliveries of 737s also fell from last year while deliveries of 787 Dreamliners increased.