Gogo records quarterly revenue of $121 million

Gogo President and CEO Michael Small.

Gogo has reported a record quarterly revenue of $121.2 million during Q2, up 22% year-on-year.

The company’s service revenue increased 28% to $101.4 million, exceeding $100 million in a single quarter for the first time.

Michael Small, Gogo’s President and CEO, said: “Q2 was another outstanding quarter for Gogo. We delivered record financial results; received the first of two certifications needed to fly 2Ku on our own aircraft; and signed a definitive agreement with GOL, a leading Brazilian airline, to equip its entire fleet of 140 aircraft with 2Ku, our next-generation satellite technology.

“We expect this year that 2Ku will begin to bring an industry-leading combination of capacity, cost, reliability and global coverage to planes both in North America and internationally.

“I am very pleased with our progress to date in getting 2Ku to commercial deployment and with our continued success in winning airlines as we expand internationally.”

Gogo says it has received the first of two required STCs for 2Ku and expects to obtain the second required STC in the third quarter, launching 2Ku service commercially later this year.

Industry rumours also suggest that it may announce a further 2Ku customer at the Apex Expo in Portland, Oregon, in late September.

Smalls added that during the quarter, Gogo installed 105 aircraft and its airline partners retired 56 installed aircraft primarily due to fleet-refresh programmes. As a result, it ended the quarter with 2,249 aircraft online, up 49 since March 31, 2015.

Business Aviation saw a 31% increase in ATG systems online to 3,170 at June 30, 2015 compared with June 30, 2014.

I terms of commercial aviation in the rest of the world, it ended the quarter with 148 aircraft online, an increase of 32 aircraft from March 31, 2015. Gogo says it has more than 400 aircraft contracts awarded, but not yet installed.

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