Virgin Galactic has announced that the production of its new suborbital spaceplanes, the Delta-class vehicles, or SpaceShips, remains on schedule for the commencement of commercial flights by mid-2024. This update was shared during a May 15 earnings call, where the company highlighted significant progress in various areas including structures, propulsion, and avionics.
“An enormous amount of work is taking place across our company as well as our key suppliers,” stated Michael Colglazier, chief executive of Virgin Galactic, during the call. The company released a video showcasing the current production status and plans to provide regular updates starting in June.
The projected timeline, reiterated from February’s earnings call, anticipates test flights in spring 2024. Commercial flights, initially carrying research payloads, are scheduled for summer 2024, followed by private astronaut flights in the fall. With this schedule in place, Colglazier indicated that Virgin Galactic expects to resume ticket sales in the first quarter of 2026. New customers will be added gradually through a “white glove onboarding experience,” allowing for pricing adjustments. While specific prices haven't been set, they will exceed the previous $600,000 price point.
Virgin Galactic is also conducting a feasibility study for flights originating from an airport in southern Italy. “What we’re doing right now is establishing clarity of what airspace would be needed,” Colglazier explained, emphasizing that airspace requirements depend on specific flight paths influenced by weather conditions.
Further, the company continues exploring alternative applications for its carrier aircraft, capitalizing on its high-altitude, long-endurance capabilities with heavy payloads. This could extend to intelligence, surveillance, and reconnaissance, as mentioned in February. “The volume of missions that could leverage this capability is increasing,” Colglazier noted, highlighting meetings with Defense Department officials and aerospace and defense companies. “We’ve been encouraged by initial feedback,” including “multiple opportunities” related to the Golden Dome missile-defense initiative.
The company reported $0.5 million in revenue for the first quarter and an adjusted EBITDA loss of $72 million. However, Virgin Galactic asserts that peak spending on new spaceplane development is past, as one-time tooling investments are complete. “We’re pleased that the peak spending is behind us,” confirmed Doug Ahrens, chief financial officer of Virgin Galactic. This signals a decrease in quarterly spending through the remainder of the year.