Virgin Galactic, the space tourism company owned by Richard Branson, has experienced a significant financial boost in the second quarter as it began flying paying customers. The company reported Revenue of $1.9 million for the quarter ended June 30, a substantial increase from $357,000 in the same period last year. This surge in revenue was driven by commercial spaceflight and membership fees from future astronauts.

However, despite the increase in revenue, Virgin Galactic incurred a net loss of $134.4 million, up from $110.7 million in the previous year. This loss can be attributed to the company’s investment in research and development expenses for the development of its future fleet. The company spent $87 million on research and development in the April-June quarter, compared to $62 million a year ago.

Virgin Galactic aims to fly customers monthly using its current vehicle, VSS Unity, and is also working on developing a next-generation spacecraft, Delta-Class, which will allow for weekly flights. The company successfully conducted its first commercial flight on June 29 and plans to fly the second commercial spaceflight on August 10 with three private astronauts.

Despite the financial loss, Virgin Galactic’s CEO, Michael Colglazier, remains optimistic about the company’s future. He stated that the company’s financial position remains strong and that they are focused on scaling the business and delivering their Delta Class spaceships for commercial service by 2026. Virgin Galactic expects to generate $1 million in revenue in the current quarter and the fourth quarter of 2023.

Virgin Galactic’s shares fell 6 percent as the broader market declined. Nonetheless, the company’s success in attracting revenue from space tourists demonstrates a growing market for commercial space travel.

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