Branson, one of six Virgin Galactic Holding Inc employees strapped in for the ride, has touted the mission as a precursor to a new era of space tourism, with the company he founded in 2004 poised to begin commercial operations next year.
"We’re here to make space more accessible to all," an exuberant Branson, 70, said shortly after the flight. "Welcome to the dawn of a new space age."
The success of the flight also gave the flamboyant entrepreneur bragging rights in a highly publicized rivalry with fellow billionaire Jeff Bezos, the Amazon online retail mogul who had hoped to fly into space first aboard his own space company's rocket. "Congratulations on the flight," Bezos said on Instagram. "Can’t wait to join the club!"
Space industry executives, future customers and other well-wishers were on hand for a festive gathering to witness the launch, which was livestreamed in a presentation hosted by late-night television comedian Stephen Colbert. Among those present was fellow billionaire and space industry pioneer Elon Musk, who also is founder of electric carmaker Tesla Inc .
Grammy-nominated R&B singer Khalid took the stage after the flight to perform his forthcoming single "New Normal."
The gleaming white spaceplane was carried aloft on Sunday attached to the underside of the dual-fuselage jet VMS Eve (named for Branson's late mother) in a takeoff from Spaceport America, a state-owned facility near the aptly named town of Truth or Consequences. Virgin Galactic leases a large section of the 18,000-acre site.
Reaching its high-altitude launch point at about 46,000 feet, the VSS Unity passenger rocket plane was released from the mothership and fell away as the crew ignited its rocket, sending it streaking straight upward at supersonic speed to the blackness of space some 53 miles (85.9 km) high.
The spaceplane's contrail was clearly visible from the ground as it soared through the upper atmosphere, to the cheers of the crowd below.
At the apex of the climb with the rocket shut down, the crew then experienced a few minutes of microgravity, before the spaceplane shifted into re-entry mode, and began a gliding descent to a runway back at the spaceport. The entire flight, from takeoff to landing, lasted about an hour. "I’ve dreamt of this since I was a kid, and nothing could prepare you for the view from space," Branson told hundreds of cheering supporters from a stage outside Virgin Galactic's Gateway to Space complex at the spaceport, before he and crewmates doused one another with champagne.
The daredevil executive had previously broken world records with ocean-crossing exploits in hot-air balloons.
Retired Canadian astronaut Chris Hadfield pinned Virgin-produced astronaut wings onto the blue flight suits worn by Branson and his team. Official wing pins from the Federal Aviation Administration would be presented at a later date, a company spokesman said.
Virgin has said it plans at least two further test flights of the spaceplane in the months ahead before beginning regular commercial operation in 2022.
Several hundred wealthy would-be citizen astronauts have already booked reservations, priced at around $250,000 per ticket.
The Swiss-based investment bank UBS has estimated the potential value of the space tourism market reaching $3 billion annually by 2030.
Proving rocket travel safe for the public is key.
An earlier prototype of the Virgin Galactic rocket plane crashed during a test flight over California's Mojave Desert in 2014, killing one pilot and seriously injuring another.
Virgin Galactic's passenger rocket plane VSS Unity, carrying billionaire entrepreneur Richard Branson and his crew, descends after reaching the edge of space above Spaceport America near Truth or Consequences, New Mexico, US, July 11, 2021. Reuters
His ride-along also upstaged rival astro-tourism venture Blue Origin and its founder, Bezos, in what has been popularized as the "billionaire space race."
Bezos has been planning to fly aboard his own suborbital rocketship, the New Shepard, later this month.
Branson has insisted he and Bezos are friendly rivals and not engaged in a personal contest to beat one another into space.
Blue Origin, however, has disparaged Virgin Galactic as falling short of a true spaceflight experience, saying that unlike Unity, Bezos's New Shepard tops the 62-mile-high-mark (100 km), called the Kármán line, set by an international aeronautics body as defining the boundary between Earth's atmosphere and space.
"New Shepard was designed to fly above the Kármán line so none of our astronauts have an asterisk next to their name," Blue Origin said in a series of Twitter posts on Friday.
However, US space agency NASA and the US Air Force both define an astronaut as anyone who has flown higher than 50 miles (80 km).
A third player in the space race, Musk's SpaceX, plans to send its first all-civilian crew (without Musk) into orbit in September, after having already launched numerous cargo payloads and astronauts to the International Space Station for NASA.
The spaceplane's two pilots were Dave Mackay and Michael Masucci. The three other mission specialists were Beth Moses, the company's chief astronaut instructor; Virgin Galactic's lead operations engineer Colin Bennett; and Sirisha Bandla, a research operations and government affairs vice president.