This Is Why Virgin Galactic Won't Go to Space as Often in 2024
Virgin Galactic (NYSE: SPCE) achieved something truly out of this world in 2023 -- it began operating a space tourism business. For the science fiction aficionados out there, this is the stuff of dreams (unless you are rich enough to actually buy a ticket on one of the company's flights). But there's still one very big problem here, and it shows up clearly when you start to look at the company's financial statements.
In the third quarter of 2023, Virgin Galactic's space travel business was basically up and running at its expected capacity of one trip per month. However, if you examine the earnings statement, that news doesn't look nearly as exciting as you might hope. For example, the company generated revenue of $1.7 million, but the cost of its space flights totaled $44.8 million. You don't have to be an accountant to figure out that the company would need to generate a lot more revenue before this business has any hope of turning a profit.
Image source: Getty Images.
Source Fool.com
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