The pioneering space tourism company Virgin Galactic is reducing the frequency of its current suborbital vehicle flights and will cease them by mid-2024. This results from the company shifting its focus towards developing its next-generation vehicles, the Delta-class spaceships. Virgin Galactic founder Richard Branson said that the move will allow the company to focus all its efforts on bringing these new spaceships into service.
The announcement came during a recent earnings call the company hosted to discuss its third-quarter results, which showed a net loss of $145.5 million. This was triple the company’s loss in the same period last year.
Branson pointed out that the company’s losses resulted from a “tougher regulatory environment” and that the increased fuel cost is making it harder for the company to compete in the commercial space travel industry. The company is focusing on developing its next-generation spaceship, the Delta class, which will offer passengers a more comfortable ride to and from the edge of space.
It will also be able to carry more people, up to six, which is far more than the current VSS Unity. According to a statement from the company, it plans to begin flying these new spaceships in 2025.
The spacecraft can fly up to twice a week, which is sharply more than the current VSS Unity’s monthly flights. Branson and his team estimate this will offer them up to 12 times the revenue Unity generates.
Virgin Galactic has sold thousands of flight tickets to date, but hundreds of seats remain. The company plans to sell these seats for a much higher price than it has done thus far. The first few customers to fly on these new spaceships will be researchers, who will pay about $150,000 per seat versus the $450,000 that Virgin Galactic has been charging for passenger tickets on Unity.
Virgin Galactic isn’t the only space travel company struggling to make ends meet in this competitive industry. Blue Origin, another space tourism company, has had several problems with its crewed vehicle, the New Shepard, grounded since a crash in June.
The CNBC Investing in Space newsletter provides you with the latest news, investor updates, and exclusive interviews on the fastest-growing companies in space exploration. Click here to receive your free trial today! 2019 CNBC. All rights reserved. This material may not be published, broadcast, rewritten, redistributed, or powered by CNBC Global Syndication.