Photo Credit: Gogo

Gogo reported signs of a recovering aviation market in its full-year (FY 2020) financial disclosure. The In-Flight Connectivity (IFC) provider reported a 17% increase in revenue from its Third Quarter (Q3), reaching a total of $77.6 million in Q4 2020. Although this was still 10% under Gogo’s revenue total from the same period in 2019, it is a positive shift in direction for an industry hit hard by the COVID-19 pandemic.

In December, Gogo sold its commercial aviation business to Intelsat for $400 million in cash. It now provides services only to the business aviation market. Gogo CFO Barry Rowan said that the sale provided significant financial relief and lowered the company’s net debt level.

“We are now well-positioned to execute a comprehensive refinancing to de-lever and reduce our interest expense, drive future growth, and increase shareholder value,” Rowan said in a March 11 statement.

Decreases in equipment revenue drove most of Gogo’s year-over-year losses. But, the company noted that its equipment installation rate recently returned to pre-COVID levels. Its FY 2020 service revenue of $212 million is only 4% lower than its 2019 total.

Gogo expects its revenues to grow at a compounded rate of at least 5% from 2020 to 2025 as air travel becomes safer and more in demand. The company also said it will spend most of the $25 million to $30 million in expected future CapEx on a new 5G service.