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Thursday, June 4, 2020
Home Aviation Aviation spending hits profits at Inmarsat | Business

Aviation spending hits profits at Inmarsat | Business


Technicians at work on an Inmarsat satellite in Cannes. The company’s revenues were up 9.4 per centEric Gaillard/Reuters

Growth in government contracts helped drive first-half revenue at Inmarsat, which provides broadband services for ships, aircraft and remote land areas, but profits were down because of a big increase in capital expenditure and a rise in financing costs.

With user demand for inflight wifi on the increase, the London-based company has been investing heavily in its aviation division. New contract wins with Qatar Airways and Avianca, the Colombian airline, have brought the total of aircraft expected to install its passenger cabin broadband to 1,200. It is also planning to launch its continent-wide European Aviation Network with Lufthansa this year.

Capital expenditure more than doubled to $300.8 million, driven by a big increase in its aviation division in the first half. The company said it…

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