Virgin Galactic tumbles after delaying commercial service again

VIRGIN Galactic Holdings shares plunged after the space tourism company again delayed its commercial service, calling for a launch in the second quarter of 2023.

The company had previously disappointed investors by pushing back the launch, once planned for the third, then fourth quarter of 2022. In May, Virgin Galactic delayed it to the first quarter of 2023.

On a conference call Thursday (Aug 4) to discuss quarterly results, chief executive officer Michael Colglazier cited supply-chain disruptions and labour constraints as pressures on its operations.

Virgin Galactic shares fell 9 per cent to US$7.45 as of 5.51 pm after the close of regular trading in New York. The stock dropped about 39 per cent this year through Thursday's close.

The company, founded by entrepreneur Richard Branson, last month said it was contracting with Boeing's Aurora Flight Sciences to design and build 2 motherships. The twin-hulled aircraft carry its passenger spaceships to about 50,000 feet and release them to travel into space. BLOOMBERG