Why Gogo Inc. Shares Jumped Today

What: Shares of Gogo jumped today, up by 11% as of 2:57 p.m. ET, after American Airlines dropped its lawsuit to switch providers.

So what: Gogo took a hit last week when American said it was considering switching to rival ViaSat for in-flight connectivity and entertainment options. At the time, Gogo assured investors that it had the opportunity to submit a competing bid and that the aircraft in question were simply using older technology.

Now what: The company was confident that it could submit a competitive bid and defend the contract. It appears that Gogo has done just that, as the company has announced that American dismissed the declaratory judgment action that it had filed. For now, Gogo has retained the lucrative partnership with the airline.

The article Why Gogo Inc. Shares Jumped Today originally appeared on Fool.com.

Evan Niu, CFA has no position in any stocks mentioned. The Motley Fool has the following options: long January 2017 $35 calls on American Airlines Group. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.