U.S. Air Force reduces F-35 jet request by half, prompting reassessment of Lockheed Martin programme

As the F-35’s largest customer, the Air Force’s move signals a strategic shift in funding priorities for fiscal year 2026. The decision aligns with Defense Secretary Pete Hegseth’s plan to adjust US military spending by 8% over the next five years.

The proposed reduction could still change as it proceeds through Congress, where Lockheed Martin retains considerable support. The defence company’s shares dropped as much as 7% on Wednesday, the steepest decline since 21 March.

Byron Callan, defence analyst at Capital Alpha Partners LLC, noted that Lockheed Martin “might be able to offset a sales decline” if it secures roles in other defence initiatives. He cited potential gains in “increments of the new unmanned Air Force fighter drone program and portions of the ‘Golden Dome’ missile and air defense system.”

Callan also expressed doubt about expanding international sales, stating, “We are skeptical that major new international customers will emerge, including India and the United Arab Emirates.” Notably, manned aircraft were not included among the 17 areas that Hegseth exempted from budget cuts in February.

The Air Force’s revised plan includes $3.5 billion for the F-35, along with $531 million for advance procurement of materials. Meanwhile, the Navy would request $1.95 billion to purchase 12 carrier-variant F-35s and $401.5 million for advance procurement, while the Marines seek $1.78 billion for 11 aircraft and $113.7 million for future materials.

Both the Navy and Marine Corps would face reductions from current levels, with the Navy cutting five planes and the Marines reducing their request by two. The Pentagon is currently operating under a stopgap funding measure due to Congress’s failure to pass a full budget.

The Air Force had originally aimed to buy 1,763 F-35As, but the programme has drawn increasing scrutiny in recent years. In December, Elon Musk commented that “some idiots are still building manned fighter jets like the F-35” despite the rise of drone warfare.

The F-35 programme now carries an estimated total cost of about $2 trillion, including $485 billion for development and procurement of 2,456 jets and around $1.5 trillion for long-term support. Of those, 967 have been contracted and 747 delivered to date.

Source: Bloomberg.