Virgin Galactic reduces its losses than projected, improves its cash position

Virgin Galactic reduces its losses than projected, improves its cash position ...

Virgin Galactic Holdings Inc reported a lower-than-expected quarterly loss on Monday, stating that its cash position had improved, sending its shares 5% higher in extended trading.

As of December 31, the company founded by billionaire Richard Branson had accumulated approximately $931 million in cash, comparative to $679 million a year earlier.

The amount excluding the $425 million raised last month by a debt offering to help finance its commercial service, which is expected to begin later this year.

Virgin Galactic reopened ticket sales to the public for space travel earlier this month, stating that prices would be $450,000 per person, with a $150,000 initial deposit.

The airline has increased its focus on its Delta class of spaceships, collaborating with suppliers to increase the production of the craft that is expected to make up the bulk of its flight capacity and fly once a week.

According to Refinitiv IBES data, the company reported a loss of 31 cents per share in the fourth quarter and then 31th quarter. That was attributed to labor efficiency and the postponement of certain non-critical activities.

The total income sounded at $141,000, compared to $331,000.

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