In early 2020 Gogo‘s business aviation segment logged an average of 3,500 flights per day with inflight wifi active. That number dropped by nearly 90% into mid-April to just 378 connected flights. But Gogo, and the rest of the aviation market, is moving beyond that low point for commercial and private air travel in the USA. General aviation in particular is bouncing back strong, with Gogo reporting that it surpassed 3,000 connected daily flights on 25 June.
I’m encouraged because we’re seeing several positive trends taking shape in the market. We’ve strived to be a good partner with our customers to get through a very difficult time together, and we’re now in the midst of a measurable recovery as flight activity increases.– Sergio Aguirre, president of Gogo Business Aviation
Business aviation hit a low point in mid-April when many aircraft owners chose to park their aircraft and 30 percent of Gogo Business Aviation’s accounts chose to reduce their spending through either account suspensions or service-plan downgrades. By the time the company’s earnings call arrived in early May ~25% had already reactivated their accounts. Gogo is now reporting that 60% of suspended accounts reactivated. And the planes are flying more and more.
As previously anticipated, business aviation traffic is rebounding significantly faster than commercial passenger service, and many of those planes are flying with Gogo’s air-to-ground inflight wifi system on board. Moreover, the company indicates that installations of new AVANCE L5 and L3 kit have resumed.
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The strong rebound is good news looking to future results, though Q2 will still be rough on the revenue side and lagging commercial aviation recovery hangs over the company precariously.
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