Gogo, an Itasca-headquartered in-flight Wi-Fi provider, stocks bounced between US$10 and US$16 range since its initial public offering where it was able to raise US$187 million. The figure fell roughly 20% since the company's debut. Many investors expressed their worries about Gogo but analysts said that the company would succeed as long as travellers wanted to use the internet.
Gogo reported a net loss of US$32.45 million on US$70.75 million in profit during the first quarter. Compared with its net loss of US$17.6 million on U$54.3 million in profit last year, Gogo lost more this year. However, Gogo already fixed the issues regarding its connection. To strengthen its network, the company secured a license to manage 1,000 Ku-band satellite airplanes. Gogo received the license from Federal Communications Commission following its deal with Intelsat to supply global satellite coverage.
The internet service from Gogo would be available in up to 80% of all the Wi-Fi-enabled airplanes in North America. Furthermore, analysts believed that the internet addiction of North American air travellers including the company's developing infrastructure would ensure a smooth ride for the investors of Gogo.
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