Why Virgin Galactic Shares Are Rocketing Higher In After-Hours Trading

Virgin Galactic Holdings Inc (NYSE: SPCE) is surging higher in the after-hours session after the company announced it was cleared to fly FAA-licensed spaceflights following the conclusion of an FAA inquiry related to the Unity 22 flight in July.

The FAA previously grounded all Virgin Galactic flights, pending the results of an investigation into the company’s course deviation during the Unity 22 flight.

Virgin Galactic said Wednesday the FAA told the company the corrective actions proposed by Virgin Galactic were accepted, which concluded the FAA inquiry.

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The corrective actions include updated calculations to expand the protected airspace for future flights and an addition to Virgin Galactic's flight procedures that will help to ensure real-time mission notifications are sent to Air Traffic Control.

"Our test flight program is specifically designed to continually improve our processes and procedures. The updates to our airspace and real-time mission notification protocols will strengthen our preparations as we move closer to the commercial launch of our spaceflight experience," said Michael Colglazier, CEO of Virgin Galactic.

SPCE Price Action: Virgin Galactic has traded as high as $62.80 and as low as $14.27 over a 52-week period.

The stock was up 10% at $24.84 in after-hours trading at the time of publication.

Photo: courtesy of Virgin Galactic.