Virgin Galactic shares jump 15% after space company says next test flight will be this week

KEY POINTS

• Virgin Galactic stock jumped after the space tourism company announced its next spaceflight test is targeting May 22.
• “Following a detailed inspection and thorough analysis of our mothership, Eve, we have cleared our Spaceflight System for our upcoming flight,” Virgin Galactic CEO Michael Colglazier said in a statement.
• The company is working to complete development of its SpaceShipTwo system, with four test flights remaining before Virgin Galactic begins commercial service in 2022.

Virgin Galactic stock jumped after the space tourism company announced its next spaceflight test is targeting May 22, following the completion of a maintenance review of its carrier aircraft that threatened to delay the flight from this month.

“Following a detailed inspection and thorough analysis of our mothership, Eve, we have cleared our Spaceflight System for our upcoming flight,” Virgin Galactic CEO Michael Colglazier said in a statement.

Shares of Virgin Galactic jumped as much as 15% in premarket trading from its previous close of $19.92.

Virgin Galactic leadership,when the company reported first quarter results last week, revealed that the target date for the next spaceflight test was under evaluation due to a possible maintenance issue with VMS Eve, the aircraft that carries the spacecraft before launch. The company said its engineering analysis determined the VMS Eve “structures healthy,” clearing the aircraft for flight.

The company is working to complete development of its SpaceShipTwo system, with four test flights remaining before Virgin Galactic begins commercial service in 2022.

Virgin Galactic attempted the first of those four spaceflight tests in December, but the mission was cut short by an engine anomaly. The company scheduled a repeat of the flight attempt for February, but then delayed to May to give more time to address an electromagnetic interference issue with the spacecraft’s flight computer.

This upcoming spaceflight test will fly with just the two pilots onboard, but will also carry microgravity research payloads under NASA’s Flight Opportunities program. In addition to resolving the issue which cut short the December attempt, Virgin Galactic said this spaceflight test will further evaluate its customer cabin and test a livestream from onboard the spacecraft.