Virgin Galactic soars 12% after company reports smaller-than-expected loss and stays on track for commercial space flights in the 4th-quarter

• Virgin Galactic shares jumped 12% after the company reiterated plans to send customers to space by year-end.
• The company also reported a narrower-than-expected earnings loss in its quarterly report.

Virgin Galactic shares spiked as much as 12% Wednesday after the space-tourism company said it will be set for commercial flight later this year and reported a smaller-than-expected earnings loss.

Virgin Galactic, founded by Sir Richard Branson, said in its fourth-quarter earnings report late Tuesday that it's "on track and on schedule to" finish enhancing its spaceships by the third quarter and launch commercial service by the fourth.

As for numbers, the company said it lost $0.31 per share in the fourth quarter, compared to analysts' expected loss of $0.34 per share. It also ended the period with $931 million in cash on hand, an increase from just $679 million at the end of 2020.

"We achieved many important milestones in 2021 that laid an essential foundation towards becoming a scaled, commercial operation," the company said.

The renewed plan for commercial flight by year-end is a big step for a company that has repeatedly delayed sending customers into space, a goal that was once set for 2020.

Last week, the company opened ticket sales for commercial flight to customers. A single ticket had a $450,000 price tag for a 90-minute flight and several days of astronaut training. By 2026, the company is hoping to have flights as frequently as once per week, according to its earnings presentation.

Virgin Galactic shares traded 12% higher at $8.76 at 11:58 a.m. in New York. Even with the day's rally, though, shares are down 80% in the past year as hype around the company — much of it from Reddit retail traders — wavered amid several setbacks.