Space tickets to hit $850,000 soon

Passengers planning suborbital space travel will pay up to $850,000 for a seat, according to executives at Virgin Galactic. The price increase follows the sellout of a previous ticket tranche priced at $750,000. The company announced the new pricing structure during its third-quarter earnings call on Thursday.

The shift in pricing comes as the company faces financial pressure. Virgin Galactic reported $427,000 in revenue for the third quarter but recorded a net loss of $59 million. Executives stated that outstanding debt remains below $100 million. To manage these costs, the company announced a new at-the-market stock offering worth $250 million to help pay down debt.

The company’s path to profitability involves expanding both its commercial and defense operations. Michael Colglazier, the chief executive officer, told investors that government contracts offer a new revenue stream. He cited high demand for rocket systems within the defense sector and stated that Virgin Galactic plans to expand its production capabilities to meet that demand.

In October, the company signed a cooperative research and development agreement with the Air Force Research Laboratory’s Space Warfare Directorate. The agreement was established at Kirtland Air Force Base. Colglazier noted that the company’s expertise in rocket design and production can support these government needs.

Operational changes are also underway at Spaceport America in southern New Mexico. The company plans to increase its annual flight capacity to 150 flights using two spaceships. The newest vessel, Apeiron, landed at the facility in late October. Commercial flights, which were originally scheduled for late this year, are now expected to begin in the second quarter of 2027.

Management explained that the delay allows time to integrate hardware and software systems. No flights have occurred since the company’s last launch two years ago. Virgin Galactic shares, which trade under the ticker symbol SPCE on the New York Stock Exchange, fell 7% on Thursday to close at $2.67.