Gogo Shares Plunge More Than 20% After AT&T Announces In-Flight Wi-Fi Plans

Skift Take

The drop was inevitable after AT&T’s news, but Gogo still has a monopoly on in-flight connectivity and it will take AT&T years to catch up.

— Samantha Shankman

Shares of in-flight Internet provider Gogo Inc. are sinking more than 20 percent following news that AT&T would be competing to connect fliers to the Internet.

AT&T is promising fliers faster connection speeds, using technology from Honeywell Aerospace to connect with its 4G LTE network ground network by the end of 2015.

Gogo currently dominates the in-flight Internet market, providing an air-to-ground connection for passengers on Air Canada, Alaska Airlines, American Airlines, Delta Air Lines, United Airlines, US Airways and Virgin America.

Global Eagle Entertainment Inc.’s Row 44 provides a faster satellite Internet connection for fliers on Southwest Airlines and some foreign airlines. That company’s shares fell 4 percent.

The other player is ViaSat, along with partner LiveTV, which is slowly rolling out satellite service on JetBlue Airways jets.

GOGO Chart

GOGO data by YCharts

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