By
Godfrey Benjamin
August 10th, 2023
Virgin Galactic stock has gained approximately 7.22% in the past year but has dropped approximately 20% and 8.9% in the past three months and one month respectively.
Virgin Galactic Holdings Inc (NYSE: SPCE) stock was trading at around $19.96, down 17% during today’s premarket. The vertically integrated aerospace and space travel company, today announced that it will begin the planned enhancement program for its VMS Eve and VSS Unity. Additionally, the company will conduct the Unity 23 test flight after the planned enhancement program work is over. According to the company through a note to investors, the scheduled enhancement program is meant to improve the vehicle performance. Additionally, the program is meant to enhance vehicle flight-rate capability. Notably, the company intends to complete the vehicle testing program that includes a planned research test flight with the Italian Air Force. This is expected to happen before Virgin Galactic will start commercial flights.
“Our decisions are driven by detailed and thorough analysis, and we fly based on the most accurate and comprehensive data available. Virgin Galactic vehicles are designed with significant margins for safety, providing layers of protection that far exceed loads experienced and expected to occur on our flights. The re-sequencing of our enhancement period and the Unity 23 flight underscores our safety-first procedures, provides the most efficient path to commercial service, and is the right approach for our business and our customers. We are deeply appreciative of the Italian Air Force Research Mission and grateful for their continued partnership with us in this test flight program,” said Michael Colglazier, Chief Executive Officer of Virgin Galactic.
The company undertook the test flight that carried with it the CEO Richard Branson to space, in what he described as a lifetime experience. However, the company experienced a glitch when the flight vehicle detoured its intended flight path. Although the flight vehicle landed successfully, American regulators needed the company to explain if the mishap is of any danger to the public.
Virgin Galactic amid Postponement of Flights
The company continues to venture into the space tourism industry despite the disruptions by the Covid pandemic. Notably, the company has received hundreds of ticket requests costing around $200,000 and $250,000 per seat. However, the company has since revised the prices to around $450,000 per seat.
The company further updated its investors in a note and indicated that its third-quarter earnings results will be released on November 8, 2021. Virgin Galactic stock has gained approximately 7.22% in the past year but has dropped approximately 20% and 8.9% in the past three months and one month respectively through Thursday.
According to market analytics provided by MarketWatch, the company has a market capitalization of approximately $6.16 billion. Virgin Galactic has 257.26 outstanding shares.