Gogo raises 2018 adjusted EBITDA view to high end of $45M-$60M range
Gogo announced that as of December 31st, 2018, modifications to protect against de-icing fluid contamination on its 2Ku North American aircraft have achieved positive results. As a result of the success of the de-icing modifications, Gogo did not incur certain forecasted costs associated with further de-icing efforts in Q4 2018, and is raising its Adjusted EBITDA guidance to the high end of its previously announced range of $45M-$60M for the year 2018. As of December 31, 2018, Gogo had experienced no incidents of 2Ku system degradation on aircraft with Gogo's recent de-icing modifications. Based on Federal Aviation Administration data listing airports that have experienced de-icing activity, Gogo estimates that in 2018, aircraft with Gogo de-icing modifications flew more than 5,000 flights that had been de-iced. As of December 31, 2018, Gogo's de-icing modifications had been installed on more than 675 aircraft, representing almost 97% of the installed North American fleet. While the vast majority of global de-icing activities occur in North America, Gogo will modify existing 2Ku installations on international aircraft as part of each airline's maintenance program. All newly equipped 2Ku aircraft globally will include the de-icing modifications at the time of installation if requested by the airline. Availability across the entire Gogo 2Ku fleet was approximately 98% for the month of December, which compares to approximately 90% for the same period last winter.