Virgin Galactic Hikes Space Tourism Ticket Prices Amidst Financial Turbulence

Virgin Galactic is set to increase the price of its space tourism flights when sales resume in the first quarter of 2026, a move that comes as the company navigates financial headwinds. The Richard Branson-founded company had previously offered suborbital joyrides on its forthcoming Delta spacecraft for around $600,000 per seat. While executives didn't specify the new price tag during a recent earnings call, the price increase signals a significant shift in the company's strategy as it aims for commercial launch.

The announcement follows the release of Virgin Galactic's first-quarter earnings report, which revealed a loss of $84.5 million, or $2.38 per share. Despite posting revenue of $461,000 for the period, the company's financials reflect the ongoing challenges of developing and launching its space tourism program. The company is currently focusing on developing its next-generation Delta-class spacecraft.

Analysts at TipRanks.com anticipate earnings per share of -$2.68 on revenue of $286,000 for the upcoming earnings announcement. Notably, Virgin Galactic has managed to beat EPS expectations in the past seven quarters, primarily due to reduced operating expenses. However, analysts caution that cost-cutting alone won't be enough to sustain the company, given its substantial cash burn rate and relatively low revenue.

SPCE stock has experienced a significant downturn, plummeting over 80% in the past year, and the company hasn't turned a profit since going public in 2019. Nonetheless, Virgin Galactic remains optimistic about the potential of its Delta-class spaceship, projecting $450 million in annual revenue with strong profit margins upon its commercial launch in 2026.

Options traders are anticipating a 12.8% price swing in either direction following the earnings report, according to TipRanks' Options tool. It's worth noting that SPCE's after-earnings price moves have historically been smaller than this expectation, suggesting that current option prices may be somewhat inflated.

Wall Street analysts currently have a "Hold" consensus rating on SPCE stock, based on one "Buy" and three "Hold" ratings assigned in the past three months. The average price target of $14.58 per share implies a substantial upside potential of 375%. The company's future hinges on the successful launch and commercialization of its Delta-class spaceship.

Virgin Galactic's decision to raise ticket prices reflects the high costs associated with space tourism and the company's need to generate revenue. Can Virgin Galactic overcome its financial hurdles and achieve profitability in the competitive space tourism market? Share your thoughts in the comments below.

• Space Tourism
• SPCE
• Virgin Galactic