FAA Grounds Blue Origin New Glenn After Upper Stage Failure Dooms AST SpaceMobile Satellite

The FAA has grounded Blue Origin’s New Glenn rocket following a mishap on its third launch that placed AST SpaceMobile’s BlueBird 7 satellite into an unusable low orbit. The upper stage’s second burn failed due to insufficient thrust from one BE-3U engine, nullifying the first reuse of a New Glenn booster despite its successful recovery.

New Glenn lifted off from Cape Canaveral Space Force Station on April 19, 2026, achieving a flawless first-stage performance with landing on a drone ship. However, the second stage underperformed, deploying BlueBird 7 roughly 100 miles lower than the target orbit of several hundred miles.

AST SpaceMobile confirmed the satellite separated and powered on but lacks propulsion to sustain operations, prompting plans to deorbit it with insurance covering losses. Blue Origin CEO Dave Limp acknowledged the delivery shortfall while praising booster recovery.

The FAA classified the incident as a mishap, mandating a company-led investigation under agency oversight. Blue Origin must submit a final report with corrective actions for FAA approval before resuming flights, potentially delaying up to 12 planned 2026 missions in a competitive market.

This upper-stage reliability issue underscores operational risks for New Glenn’s expansion amid rising demand for heavy-lift launches.