Virgin Galactic Calls Off Space Flight Again

Photo: CNBC

Virgin Galactic has pushed back the opening of its commercial flights for three more months, citing delays due to refurbishing of its carrier aircraft.

Virgin Galactic declared that the commercial service is being delayed to the second quarter of 2023. It has been explained as the latest obstruction for the inaugural of its space tourism business. Before, the company had postponed the date from the fourth quarter of 2022 to the first quarter of 2023.

The stock of the company declined over 10% in after-hours trading from its close of $8.19 a share. In the last 12 months, the stock of Virgin Galactic is down more than 70%.

At present, the company has one carrier aircraft – VMS Eve. It’s around14 years old and is going through a tortuous refurbishment process. In Virgin Galactic’s flights, the jet-powered mothership plays an important role by carrying the spacecraft of the company high up to 50,000 feet altitude for launch.

As per reports from the company, Virgin Galactic has a second-quarter adjusted EBITDA loss of $93 million, greater than the previous quarter’s loss of $77 million. In hand, the company has around $1.1 billion cash. Also, it explained about its plan to sell up to $300 million in common stock. Here, the company said is that it’s intended to add “financial flexibility going forward.”