U.S. Air Force Invests $2.4B in E‑7A Wedgetail to Replace Aging AWACS Fleet

AeroMorning March 18, 2026

Washington, D.C. – March 12 2026 – The U.S. Air Force has awarded Boeing two contract modifications totaling approximately $2.43 billion to support continued development of the E‑7A Wedgetail airborne early warning and control aircraft, reinforcing efforts to replace the service’s aging Boeing E‑3 Sentry AWACS fleet.

Under the contract actions announced in mid‑March, the larger award — valued at roughly $2.34 billion — exercises an option under an existing rapid prototype contract with Boeing for the E‑7A Rapid Prototype Airborne Mission Segment. A separate modification worth about $99.3 million will support work on the aircraft’s Multi‑Role Electronically Scanned Array (MESA) radar, addressing diminishing manufacturing sources for critical radar components. Together, these modifications bring the cumulative U.S. Air Force investment in the E‑7A program to nearly $5 billion.

The Wedgetail is an advanced airborne warning and control platform based on the Boeing 737‑700 airframe, equipped with a fixed MESA radar designed to provide 360‑degree coverage and enhanced airborne battle management capabilities. It is intended to replace the U.S. Air Force’s legacy E‑3 Sentry AWACS, a platform that has served for decades but is increasingly challenged by maintenance issues and parts obsolescence.

According to U.S. Air Force officials, the recent contract modifications support a transition from the rapid prototyping phase into engineering and manufacturing development (EMD) activities. This includes maturing the system design, reducing technical risks, and conducting comprehensive testing and verification, consistent with Congressional direction included in the Fiscal Year 2026 Consolidated Appropriations Act.

The service has not publicly specified how many aircraft will be procured under the latest contract, nor has it confirmed a final production decision for a full fleet replacement. However, the awards signal continued commitment by the Department of the Air Force to field a next‑generation airborne early warning system capable of supporting joint operations and providing enhanced situational awareness.

The E‑7A Wedgetail type is already in service with allied operators, including the Royal Australian Air Force, the Republic of Korea Air Force, and the Turkish Air Force, and variants of the aircraft are being produced for other partners such as the Royal Air Force of the United Kingdom.