Virgin Galactic slumps again after Branson flight delayed

Bloomberg

Virgin Galactic Holdings Inc sank after saying its next test flight to space won’t occur until May, three months after the previous plan and further
delaying the company’s space tourism trips.
The new schedule also pushed back Virgin Galactic’s plan to carry billionaire founder Richard Branson on a separate test that had been set for the first quarter, since his flight would need to follow the May trial. Branson’s trip is likely for this summer and dates for it are being considered, the company said on a conference call after reporting quarterly results.
The delays underscore the challenges for Virgin Galactic as it seeks to get its space trips up and running. The company plans to resume sales after Branson’s flight.
President Mike Moses said electromagnetic interference problems caused a computer problem in December, when the rocket’s engine failed to ignite during a test flight. Virgin Galactic replaced flight-system computers but then uncovered additional EMI issues as it prepared for a February 13 flight. Those problems will take until May to correct.
“Investors looking for a shorter runway for profitability or even commercialisation of their space tourism business have been disappointed,” said Andrew Chanin, co-founder and chief executive officer of ProcureAM, which runs a space ETF that holds Virgin Galactic shares.
The report “is another good lesson and example that space is a tricky business,” Chanin said in an email.
The Las Cruces, New Mexico-based company also announced its first revenue flight, a space journey with three members of the Italian Air Force that is planned for late summer or early fall.
After the flight with Italians, Virgin Galactic plans a pause for maintenance and other preparatory work ahead of commencing regular customer flights in early 2022.