Gogo Sees Rising Demand for In-flight Connectivity

The number of business aircraft outfitted with Gogo air-to-ground connectivity systems stood at 4,678 at the end of last year, up 12 percent from late 2016, the company said in a recent fourth-quarter filing. Demand for in-flight connectivity was up across all business aircraft segments, Gogo said, but was especially robust for light jets and turboprops, which surged 19 percent year-over-year.

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During the fourth quarter, Gogo’s business aviation service revenues increased 25 percent year-over-year, to $45.5 million. Compared with fourth-quarter 2016, equipment revenues for this segment climbed 36 percent, to $20.6 million, as demand grew for Gogo’s new Avance systems. Segment profit strengthened to a record $26.8 million in the quarter, up 16 percent year-over-year.

For the full year, Gogo recorded $240.6 million in business aviation revenues, up from $199.6 million in 2016. This year, the company said it expects revenues for this segment to be $285 million to $295 million, an increase of between 18.5 and 22.6 percent.