- In-flight internet provider Gogo is considering selling its commercial aviation business.
- The company's CEO, Oakleigh Thorne, said Monday during a conference call with investors that Gogo has had "extensive discussions with multiple parties" and that he's "optimistic that a deal may happen," according to The Verge.
- Gogo works with some of the world's largest airlines, including Delta, American, United, and AirFrance, but its business has been hobbled by the coronavirus pandemic.
- Gogo reported a consolidated revenue of $96.6 million in the second quarter, down 55% from the same quarter last year.
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In-flight internet company Gogo is considering selling its commercial aviation business as the coronavirus continues to take its toll.
Gogo CEO Oakleigh Thorne announced Monday that the company was looking to sell during a conference call following the company's second-quarter earnings report. He noted that while the coronavirus has impacted global aviation, business travel is beginning to recover. The company is only starting to see "the beginnings of a recovery" in commercial aviation, however.
"Going forward, we are focused on maintaining the strength of our franchise and realizing the value of [commercial aviation] through a potential sale of the division," Thorne said.
Thorne added that Gogo has had "extensive discussions with multiple parties" and that he's "optimistic that a deal may happen," according to The Verge.
Gogo works with some of the world's largest airlines, including Delta, American, United, and AirFrance. But the coronavirus pandemic has wiped out a significant portion of Gogo's business. The company laid of 143 workers, mostly in its commercial aviation division, and previously furloughed 600 employees, or about 50% of its workforce.
Gogo reported a consolidated revenue of $96.6 million in the second quarter, down 55% from the same quarter last year. In North America, Gogo's sessions per day prior to the pandemic clocked in at 125,000 — in April, they dropped to 11,000, a decrease of 91%. (The company noted that sessions had risen to 40,000 per day in August, The Verge reports.)
Gogo isn't the only company affiliated with the airline industry that's been hit hard by the pandemic. Global Eagle, a company that provides internet for ships and airlines, filed for bankruptcy in July. Airlines including Virgin Australia, Virgin Atlantic and Colombia's Avianca have filed for bankruptcy as demand from travelers has dwindled. And in March, President Donald Trump signed a stimulus bill that included a $58 billion bailout package for airlines.
Analysts expect the aviation industry to be hobbled for years to come. Moody's recently predicted a recovery by the end of 2023 in the best-case scenario.
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