Virgin Galactic to raise price for flights


FILE PHOTO: Virgin Galactic's VSS Unity is released from its mothership, VMS Eve, on the way to its first spaceflight after launch from Spaceport America, New Mexico, on May 22, 2021 in a still image from video. Virgin Galactic/Handout via REUTERS.

Tustin (California): Virgin Galactic Holdings Inc says that it plans to charge more for its space tourism flights when it resumes sales in the first quarter of 2026.

The Richard Branson-founded company had been selling tickets for suborbital joyrides on its forthcoming Delta spacecraft at about US$600,000 a seat.

Company executives didn’t disclose a new price tag during a call with analysts after Virgin Galactic reported results for the first quarter last Thursday. 

The company competes with Jeff Bezos’ Blue Origin LLC in selling short trips to space for sightseeing and research.   

The first flight with the new spaceship – a research mission – is planned for summer 2026, with private astronaut flights slated for the fall of that year, the company said.

“We expect strong sales activity and repeat business, as seen with our last flight’s private astronauts signing up again. Most of our materials are US-sourced, and we’ve pre-purchased lead materials, minimising tariff impacts,” said chief executive Michael Colg Glazer.

Virgin Galactic paused tourism operations in June 2024 to focus on developing its upgraded Delta spacecraft. 

Shares of Virgin Galactic, which have slumped to under US$5, rose about 13% in postmarket trading after closing at US$3.35. 

The revamped Delta vehicles will hold six passengers, two more than in the vehicle used on previous trips.

The new craft also is designed for faster turnaround times between missions.

The company said that it will be able to clear the existing backlog of ticket holders in about a year using the new spacecraft. 

Virgin Galactic reported revenue of about US$460,000 for the first quarter, slightly above the roughly US$400,000 analysts were expecting.  

The company reported negative free cash flow of US$122mil in the quarter, similar to the same period a year ago.

Virgin Galactic expects to have negative free cash flow of between US$105mil to US$115mil in the second quarter. — Bloomberg

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Virgin Galactic , space , tourism

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