Shares of in-flight networking specialist Gogo (NASDAQ:GOGO) jumped as much as 12.2% higher on Thursday, reaching that peak at 1:25 p.m. EST. Investors can thank another large customer contract for this boost.
This morning, Gogo announced a new installation deal for its 2Ku wireless broadband platform. Hong Kong-based airline Cathay Pacific will install Gogo's networking service across a fleet of 148 wide-body airliners serving roughly 3 million passengers a month. The companies hope to have the Gogo service up and running by the middle of 2018.
To put the Cathay deal in perspective, Gogo recently completed its 300th installation of 2KU network services. The company hopes to have 600 planes equipped by the end of 2017, so another 148 aircraft six months later would be a significant increase.
Looking further ahead, Gogo recently received regulatory approval to install network services on China-based airliners. The company is finding plenty of growth traction for its satellite-based network services. Gogo may be unprofitable today, but the company is paving the way toward profitable hypergrowth in the near future.