Finances Space

Viasat and Intelsat’s financials benefit from increased aircraft travel

The reviving in-flight connectivity (IFC) sector is helping satellite companies Viasat and Intelsat, who stated passengers returning to the skies boosted their financial results. Viasat reported a milestone of $665 million in earnings for the three months ending June 30, up 25% year over year, because of a stronger IFC business. Its net profits increased to $17 million from a deficit of $12 million the previous year.

Intelsat, which is currently in Chapter 11 after the COVID-19 assisted in its insolvency in May 2020, said that a rebound in North American airline travel allowed it to generate stronger revenues and a smaller deficit. The operator reported a $507.9 million revenue increase for the quarter and a net loss of $152.3 million, compared to a $405.4 million loss for the same time in 2020. The findings came after Intelsat purchased Gogo’s commercial aviation sector last year, despite the company’s current restructuring.

Viasat saw improvements in all of its segments for the quarter, including government, satellite services (including its IFC and residential broadband operations), and commercial networks. Satellite services sales increased 36% year over year to $274 million in the first quarter of the fiscal year 2022, marking the company’s fourth consecutive quarter of progressive growth. While fixed broadband sales in the United States increased, Viasat claimed the segment’s growth was fueled by a rebound in commercial aviation passenger numbers.

According to the report, the number of planes in operation increased by more than 80% year over year to about 1,400 at the ending of June, thanks to new activations and jets returning to the sky. Icelandair has begun flying Viasat-equipped planes on the trans-Atlantic flights between Europe and the United States, and Viasat has also expanded its partnership with Delta Air Lines. As it aims to deploy the first of the three-satellite Viasat-3 constellation in early 2022, the business has issued financial predictions for the years ahead, in an uncommon gesture for the company.

This includes a 20 percent increase in average revenue from the financial year 2021 to the financial year 2023, which concludes March 31, 2023. In an August 5 financial results call, Viasat Chief Executive Officer Rick Baldridge informed investors, “This guidance illustrates that we anticipate solid growth across all of our company over the next two years as we start to put the ViaSat-3 network online.”

According to the firm, the first ViaSat-3 satellite that will serve the Americas has been handed to Boeing for the last spacecraft testing and integration in preparation for deployment in the first or the second quarter of 2022. A second ViaSat-3 spacecraft will launch five to six months later to cover the Middle East, Europe, and Africa, followed by the third spacecraft to cover Asia.

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