Peru’s interim president, José María Balcázar, announced that the country will defer the purchase of 24 F‑16 Block 70 fighter jets from Lockheed Martin until the next elected government takes office. The jets, valued at roughly $3.5 billion, were part of a competitive bid that Lockheed had secured earlier in the year.
The bid was contested by Saab’s Gripen and Dassault’s Rafale, but Lockheed’s offer stood out after it was revised from 12 jets for $3.42 billion to 24 jets for $3.5 billion, effectively halving the unit cost. The aggressive pricing was a key factor in the initial selection of the F‑16 before the postponement was announced.
Peru’s interim government is set to end on July 28, following a runoff election held on June 7. The decision to delay the purchase reflects concerns about the transitional administration’s budgetary capacity and the political uncertainty surrounding the upcoming election. The U.S. ambassador to Peru warned that the United States could use “all available tools” to influence the outcome, underscoring the strategic importance of the deal to U.S.–Peru defense ties.
For Lockheed Martin, the $3.5 billion order would have added to near‑term revenue and helped fill a substantial backlog. The loss of the contract is a notable hit to projected sales for the fiscal year, prompting the company to adjust its production schedule and cash‑flow projections. Lockheed maintains a large backlog, but the removal of this order represents a significant adjustment to its near‑term revenue outlook.
Peru’s air force currently has only two of its 31 fighters combat‑ready, highlighting the urgency of modernization. The postponement delays the acquisition of new aircraft that would have addressed this capability gap. Peru’s designation as a Major Non‑NATO Ally in February 2026 has deepened U.S. defense cooperation, making the F‑16 deal a high‑profile element of that relationship.
The postponement illustrates how large defense contracts can be vulnerable to political shifts and budgetary constraints. Lockheed Martin must navigate the revenue impact, while Peru faces a decision on future procurement that will shape its air defense posture for years to come.
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