Gogo buys in own stock
September 7, 2023
By Chris Forrester
Business jet in-flight broadband specialist Gogo Aviation is spending $50 million (€46.6m) on a share repurchase programme.
“Our long-term capital allocation priorities are to first maintain adequate liquidity; second, invest in high-return strategic initiatives; third, carry an appropriate level of debt with a target net leverage ratio of 2.5x – 3.5x; and fourth, return capital to shareholders,” said Oakleigh Thorne, chairman and CEO.
“With a strong cash balance, our Gogo 5G, Galileo and other strategic projects well-funded, our net leverage ratio at 3.0x, and with strong confidence in our business, we are now comfortable moving to priority four and returning capital to shareholders,” Thorne said.
The company currently has some 128.7 million shares outstanding.
As of June 30th, 2023, Gogo reported 7,064 business aircraft flying with its ATG systems onboard, 3,598 of which are flying with a Gogo AVANCE L5 or L3 system; and 4,433 aircraft with narrowband satellite connectivity installed.