Virgin Galactic shares tumbled 10% on Thursday after the space-tourism company pushed back the start of commercial flights to February 2027 from the fourth quarter of 2026, citing more time for avionics and system installation.

Virgin Galactic plans to begin flight testing in October as work progresses on its spacecraft. A second vehicle is expected to enter the fleet in March 2027, adding capacity as the company moves toward regular service.

Despite the delay, Virgin Galactic said demand for its spaceflight offerings remains firm. The $750,000 tranche is already oversubscribed and booked ahead of schedule, while the company plans to introduce another group of seats at higher prices later this fall.

Virgin Galactic also reported a narrower second-quarter net loss of $56 million, compared with $67 million a year earlier. Lower operating costs and a gain tied to debt extinguishment helped reduce the loss, while management expects cash flow to turn positive sometime in 2027.