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Stock impact report

Gogo to furlough more than 600 employees, applies for CARES Act grant and loan [MarketWatch]

Gogo Inc. (GOGO) 
Last gogo inc. earnings: 3/13 07:00 am Check Earnings Report
US:NASDAQ Investor Relations: ir.gogoair.com/investor-overview
Company Research Source: MarketWatch
Shares of Gogo Inc. tumbled 10% said Tuesday after the provider of in-flight connectivity and wireless entertainment said it will furlough more than 600 employees, or about 60% of its workforce, as part of its plan to cut costs as a result of the COVID-19 pandemic. The company said it will also reduce compensation for most other employees, including a 30% cut of Chief Executive Oakleigh Thorne's salary. Gogo said the cuts were necessary as as 60% of its revenue comes from its two commercial airline segments, and passenger traffic on the airlines using Gogo's service has dropped 95% this month. In addition, the remaining 40% of Gogo's revenue comes from its business aviation business, which has seen a "sharp decrease" in flight activity. Other actions Gogo is taking to deal with COVID-19-related impacts include renegotiating terms with suppliers, delaying equipment installations, cutting marketing and travel expenses and applying for an $81 million grant and $150 million loan under the Show less Read more
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