Space tourism company Virgin Galactic Holdings Inc SPCE reported third quarter financial results Monday after market close. The company also announced an updated number of reservations for future space flights.
What Happened: Virgin Galactic said it ended the third quarter with 700 flight reservations.
“Demand for space travel is strong, and we’ve been selling seats ahead of the pace we had planned,” Virgin Galactic CEO Michael Colglazier said.
Virgin Galactic updated its pricing model earlier this year, raising the price for a seat to space to $450,000. The company said the new price point, which is up from a previous $250,000 price tag, has been well received.
The company said it is on track for private commercial space flights to begin in the fourth quarter of 2022.
Virgin Galactic is targeting 1,000 reservations by the start of its first commercial flights in 2022.
The company ended the third quarter with $1 billion in cash and cash equivalents.
Related Link: SpaceX CEO Elon Musk Books A Flight With Richard Branson's Virgin Galactic
Why It’s Important: Virgin Galactic reported a delay to commercial service earlier this year, which saw analysts cut their target prices for its shares.
The Unity 22 space flight that sent founder Sir Richard Branson to space was a big event for Virgin Galactic. The company said the stream was watched by tens of millions of people and also brought in tens of thousands of requests for information on future spaceflights.
Celebrities including Leonardo DiCaprio, Justin Bieber and Tesla Inc TSLA CEO Elon Musk are among the people who have reserved their ticket to space.
Future flights that include big names could see similar viewership and increased demand for information on space flights.
“It’s a pivotal time for the company as we transition from a prototyping space innovator to the global, scaled, commercial operation we are becoming,” Colglazier said.
The enhancements being made by the company are expected to increase the service life of space flight vehicles and improve the flight-rate capability.
SPCE Price Action: Virgin Galactic shares are up 5.03% to $20.89 on Tuesday afternoon at publication.
Disclosure: Author is long SPCE shares.
Photo: Courtesy Virgin Galactic
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