I’ve said it before, but the only conclusion I can draw from stopping the only operation they have that really generates revenue is that the revenue it’s generating doesn’t actually cover all the operating costs for a flight.
To be pedantic, the revenue they’re generating in their current vehicle doesn’t cover the operating costs for a flight, plus the costs of their existing tech debt.
Presumably this is the primary reason for upping to six passenger seats— maintaining roughly the same operational costs while increasing revenue by 50%, all while tactically lowering refurbishment costs due to design improvements in the delta vehicle.
If they didn’t have a viable path to profitability, their share price would have already completely collapsed. As of now, while the current price is pessimistic due to the massive delays, FAA and NTSB investigations, and overall concerns with safety culture in the broader aerospace market, they at least have a plan to achieve profitability within the next three years.
I don’t think the share prices of any of these little public space companies are rational at all. IMO, companies like Astra, Momentus, and Virgin Galactic shouldn’t have been public in the first place and don’t have a real path to profitability.
