Please ensure Javascript is enabled for purposes of website accessibility

Why Gogo Flew 14% Higher on Tuesday

By Eric Volkman – Jun 30, 2020 at 6:34PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Airplanes are quickly filling up, and customers are returning to the company's services.

What happened

Nearly everyone who's visited a U.S. airport has come across the services of Gogo (GOGO 0.83%). 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.

A man with a smartphone in an airport.

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."

 

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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Gogo Inc. Stock Quote
Gogo Inc.
GOGO
$12.12 (0.83%) $0.10

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
332%
 
S&P 500 Returns
104%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/01/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.