Why Gogo Flew 14% Higher on Tuesday

What happened

Nearly everyone who’s visited a U.S. airport has come across the services of Gogo (NASDAQ: GOGO). The company’s specialty is in-flight, high speed internet services. On Tuesday, the stock gained some nice altitude after it published a new set of metrics.

So what

Gogo said that late last week, its services were available on over 3,000 daily flights. That’s a dramatic increase from the valley of its mid-April figure, which was 378. It’s also not far away from the company’s average of 3,500 in the days before the SARS-CoV-2 coronavirus spread around the world.

Image source: Getty Images.

The coronavirus is, naturally, the reason for that steep fall and hearty recovery. When the pandemic seized the world a few months ago, it quickly and effectively brought the travel industry to a virtual standstill. At one point, said Gogo, 30% of its key Gogo Business Aviation accounts either suspended their memberships or downgraded their plans.

Since then, however, 60% of the customers suspending their accounts have reactivated them. Four-fifths of those clients suspending or downgrading have reverted to their previous plan.

Now what

Now, with more states and municipalities reopening — for better or worse — airplanes are starting to fill up again. Gogo anticipates that this trend will grow.

“[W]e’re seeing several positive trends taking shape in the market,” the company wrote in its press release touting the improved numbers. “[W]e’re now in the midst of a measurable recovery as flight activity increases.”

10 stocks we like better than Gogo
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now… and Gogo wasn’t one of them! That’s right — they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of June 2, 2020

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

You May Also Like

About the Author: Over 50 Finance