Abstract The dynamics of xenon atoms and ions expanding in the magnetic nozzle (MN) of a helicon plasma thruster is studied by means of near-infrared laser-induced fluorescence spectroscopy on resonant and metastable states. Fluorescence spectra are measured for several operating conditions inside and outside the thruster discharge chamber. In the near-field plume, the relatively intense magnetic field induces Zeeman effect on the probed optical transitions. Hence, modeling of the atomic lineshapes is addressed to accurately compute the Doppler shift and infer the velocity. The first direct measurements of the neutral flow in a MN reveal that atoms are accelerated to supersonic velocities behind the thruster exit. The ions acceleration region extends several centimeters downstream the exit plane. Larger axial ion speeds are attained when the thruster operates at lower mass flow rates and higher levels of input power.