Virgin Galactic falls after pushing back first commercial flight

[DETROIT] Virgin Galactic Holdings is pushing the start of commercial flights further into next year after rescheduling a test flight, disappointing investors with the unexpected delay to its space tourism business plans.

A programme to upgrade the company's spaceplane is taking place a month later than anticipated, forcing the delay of a planned research mission with a crew of 4 and the start of commercial service into the fourth quarter of 2022, it said Thursday (Oct 14).

Virgin Galactic had told analysts on an August conference call it was targeting its first private astronaut flight for "late Q3".

Shares of the company fell 14 per cent in postmarket trading to US$20.66.

"Our decisions are driven by detailed and thorough analysis, and we fly based on the most accurate and comprehensive data available," Michael Colglazier, the company's chief executive officer, said in a statement.

The rescheduling is unrelated to an internal probe into a potentially defective part, Virgin Galactic said. Last month, it delayed the flight window for the research mission to mid-October due to a possible problem with a flight control actuation system component. The upcoming research flight is scheduled to include two members of the Italian Air Force, an aerospace engineer and a Virgin Galactic employee.

The Federal Aviation Administration lifted a ban on the company's test flights last month after concluding an investigation into Virgin Galatic's failure to inform the agency of an errant trajectory in a Jul 11 launch. The regulator had grounded it on Sep 2.

BLOOMBERG