Lockheed Martin’s F-35: Mass Production Keeps Costs Competitive

The production of the Lockheed Martin F-35 Lightning II fighter jet has reached significant milestones, allowing it to maintain competitive pricing in a market with high demand for advanced military aircraft. With a targeted annual output exceeding 156 units, the F-35’s production numbers surpass those of other non-Chinese fighter jets, providing a crucial advantage in controlling per-unit costs.

The F-35 program, while often criticized for its budget overruns and delays, demonstrates the benefits of mass production. In 2024, Lockheed Martin delivered 110 F-35s and anticipates delivering between 170 and 190 units in 2025, which includes aircraft previously held back due to technical issues. The total number delivered since the program’s inception has now surpassed 1,200 jets, including various models such as the F-35A, F-35B, and F-35C.

Production Numbers and Cost Efficiency

The high production rate has kept the flyaway costs for the F-35 relatively low. Lockheed Martin’s recent deal with the US government for production Lots 18 and 19 totals $24.29 billion for 296 jets, resulting in an impressive average cost of approximately $82.4 million per aircraft. This pricing positions the F-35 competitively against similar fourth-generation jets, such as the F-15EX and Eurofighter Typhoon.

The F-35’s low costs can be attributed to the advantages of mass production. The conventional F-35A is the most affordable variant, while the more complex F-35B, designed for short takeoff and vertical landing, commands a higher price. According to data from F-35.com, the average flyaway costs for Lots 15 to 17 were $82.5 million for the F-35A, $109 million for the F-35B, and $102.1 million for the F-35C.

Despite the competitive pricing, the F-35 program has faced scrutiny for its high sustainment costs. These additional expenses include maintenance, spare parts, and advanced combat systems necessary for operational readiness. For instance, the Czech Republic reportedly paid $208.3 million for each aircraft, while Romania’s costs reached $225 million each. Export customers typically face higher prices compared to US and joint strike fighter partners.

Comparative Delivery Rates and Global Demand

While Lockheed Martin leads in production, other fighter jets such as the F-15 and F/A-18 have much lower delivery rates. In 2024, Boeing delivered only 14 F-15s and 11 F/A-18s. The production line for Super Hornets is set to close in 2027, further diminishing competition in that segment.

European manufacturers face similar challenges. The Dassault Rafale increased deliveries from 13 in 2023 to 21 in 2024, but overall numbers remain modest. The Eurofighter, produced across several countries, has encountered production delays due to a lack of orders.

The F-35’s success is also reflected in its export levels. Nearly every eligible US ally with the budget to purchase a high-end fighter has opted for the F-35. Countries such as Japan, the United Kingdom, and Italy are among the top customers, while nations like Morocco, Egypt, and Saudi Arabia have expressed interest but face restrictions from the US government.

The competitive edge of the F-35 program lies not only in its production efficiency but also in the significant geopolitical factors influencing defense procurement. With a strong domestic demand and a growing list of international partners, the F-35’s position in the global fighter jet market seems secure.

In summary, the F-35 Lightning II program exemplifies how mass production can effectively manage costs while fulfilling a growing demand for advanced military aircraft. As Lockheed Martin continues to scale its operations, the benefits of this approach are likely to reinforce the F-35’s status as a leading choice among modern fighter jets.