Virgin Galactic (NYSE:SPCE) stock is on the rise Friday following news of approval from the Federal Aviation Administration (FAA) for commercial flights.
The FAA is allowing Virgin Galactic to move forward with its plans to offer commercial flights to customers via its rockets. That major news for SPCE stock as it marks the first time the FAA has signed off on space flights for customers.
Virgin Galactic notes that this approval comes at the same time as it receives results from its may 22 test flight. The company notes that the results were positive with the flight backing up its plans for commercial offerings.
Michael Colglazier, CEO of Virgin Galactic, said this about the news sending SPCE stock higher today.
“We’re incredibly pleased with the results of our most recent test flight, which achieved our stated flight test objectives. The flight performed flawlessly, and the results demonstrate the safety and elegance of our flight system. Today’s approval by the FAA of our full commercial launch license, in conjunction with the success of our May 22 test flight, give us confidence as we proceed toward our first fully crewed test flight this summer.”
Virgin Galactic still has three more test flights planned to take place in 2021 before it starts offering commercial flights. The company’s current goal is for its first commercial flights to space to take place sometime in early 2022.
SPCE is seeing heavy trading today following the FAA approval news. As of this writing, more than 28 million shares of the stock have changed hands. That’s already above its daily average trading volume of 20.4 million shares.
SPCE stock was up 16.2% as of Friday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.