Virgin Galactic shares jump after opening spaceflight ticket sales

[NEW YORK] Virgin Galactic Holdings shares notched their second-biggest gain since trading began in 2019 after the space tourism company said it would open commercial ticket sales - a significant milestone in the path toward consumer flights.

Customers can make an initial deposit of US$150,000 when sales open to the general public Wednesday (Feb 16), Virgin Galactic said in a statement. Reservations will cost a total of US$450,000 for a 90-minute spaceflight, which includes "several minutes of out-of-seat weightlessness", the company said Tuesday.

"We plan to have our first 1,000 customers on board at the start of commercial service later this year, providing an incredibly strong foundation as we begin regular operations and scale our fleet," chief executive officer Michael Colglazier said in the statement.

The announcement gives a needed boost to Virgin Galactic, which has sputtered in recent months. After founder Richard Branson took a high-profile flight in July, the company said it would delay the start of commercial service to upgrade its space plane. The company also ran afoul of US regulators last year, forcing it to ground flights briefly.

The shares soared 32 per cent to US$10.74 in New York, the biggest 1-day gain since Jun 25. Despite the performance, the stock is still down 81 per cent from the June peak. BLOOMBERG