Gogo has announced its financial results for the quarter ended June 30, 2018, showing a consolidated revenue of $227.5 million and a net loss of $37.2 million, an improvement of 16% from Q2 2017.
The inflight connectivity company said this was primarily related to increased business aviation performance and a reduction in commercial aviation operating spend.
Gogo says it has now reached 785 total 2Ku-equipped aircraft online on 12 global airlines, adding 139 incremental 2Ku aircraft online in the second quarter.
Oakleigh Thorne, Gogo’s President and CEO, said: “Our business aviation segment achieved its highest-ever quarterly revenue and EBITDA and we believe this segment is well positioned for continued growth.
“Our Commercial Aviation – North America segment showed solid service revenue growth over Q2 2017, excluding American Airlines. Our 2Ku operating metrics continue to improve and are helping to drive increased customer satisfaction.”
Barry Rowan, Gogo’s Executive Vice President and CFO, added: “Our second quarter results were elevated by the strong business aviation performance, a reduction and the timing of operating costs, and higher Commercial Aviation Net Service Revenue, among other items, and we maintain our 2018 Adjusted EBITDA guidance range of $35-$45 million.
“We are beginning to realise the benefits of our ‘Gogo 2020’ plan and we believe these operational improvements will drive strong EBITDA growth going forward.”
“Gogo 2020” is designed to change Gogo’s go-to-market strategy, increase quality, reduce cost structure and improve business processes.
Gogo’s reported recent developments:
- Launched service on Air Canada’s international wide body fleets, Iberia Airlines and Alaska Airlines
- Delivered continued improvement in 2Ku performance, with an average availability of over 97% in the combined months of June 2018 and July 2018, across all airline customers
- Completed Integrated Business Plan, or “Gogo 2020,” which includes a reduction in CA operating spend, excluding satellite communications costs, of nearly 20% over the next 10 quarters
- Achieved STC for A321NEO, a key STC expected to help drive future wins.