Gogo, which has raised over $500 million in funding, provides in-flight connectivity to nine of the ten North American airlines that provide internet access, including Delta Air Lines, American Airlines, Virgin America, Alaska Airlines, US Airways, Frontier Airlines and Air Tran Airways. The company also has trial agreement with United Airlines and Air Canada.
As of September 30, 2011, Gogo had equipped 1,177 planes with internet access, representing approximately 85% of internet-enabled North American commercial aircraft and is operated on more than 4,200 daily flights.
Since Gogo launched in-flight Wi-Fi connectivity in 2008, the company has provided more than 15 million wi-fi sessions to more than 4.4 million registered unique users. Currently, Gogo has contracts to add wi-fi to another 525 planes. Gogo-equipped planes represent approximately 42% of the company’s revenue for the nine months ended September 30, 2011. The company’s earliest contract, which last for ten years, expires in 2018.
In terms of revenue, Gogo posted $36.8 million in 2009 revenue, $94.7 million in 2010 revenue and $113.8 million for revenue for the first nine months of 2011. In terms of profits, Gogo has taken a loss for the past three years, with $140 million in losses in 2010. This number has reduced in 2011, with a loss of $26 million for the first nine months of 2011.
While the company has been taking losses, Gogo seems to be in a good position when it comes to the fact that it is the major provider for most North American airlines. With the new funds from the offering, Gogo will expand its in-flight wi-fi connectivity to additional North American and international flights, product development and more.
Earlier this year, Gogo revealed it is expanding beyond in-flight connectivity to providing a multimedia platform for airlines for news, movies, shopping deals and more.
And American Airlines became one of the first North American airlines to begin testing Gogo’s in-flight streaming video to personal devices for passengers. Gogo’s system wirelessly streams content such as movies and TV shows from an inflight library to select types of Wi-Fi-enabled laptops during flights.
Fellow wi-fi provider Boingo filed for an IPO earlier this year.