(Reuters) - Viasat ( VSAT ) raised its fiscal year 2025 revenue forecast on Wednesday, indicating a surge in demand for the satellite communications company's connectivity solutions from the aviation and defense markets.

The California-based company has benefited from a growing need for constant connectivity and robust security solutions as it offers in-flight connectivity and data encryption, among other products, to enterprise and government customers.

Viasat ( VSAT ) now expect flat-to-slightly-up year-on-year revenue growth for fiscal 2025, compared with its prior expectation of roughly flat revenue growth.

It faces stiff competition in the satellite communications market from major players such as Elon Musk's SpaceX, Intelsat, L3Harris Technologies, and EchoStar.

Revenue for the first quarter rose 44%, to $1.13 billion from a year earlier, compared with analysts' average estimate of $1.08 billion.

The company, which counts the U.S. government among its customers, said its first-quarter results were also boosted by Inmarsat, which it acquired last year to broaden its satellite and land-based communications services.

Viasat ( VSAT ) provides in-flight connectivity services to aviation customers including Delta Air Lines ( DAL ), American Airlines ( AAL ) and United Airlines.

Its net loss narrowed to $33 million in the first quarter, from a net loss of $77 million a year earlier.

Revenue from its communication services segment rose 48%, to $826.8 million, while revenue for its defense and advanced technologies segment, which provides solutions including encryption and cybersecurity, increased 37%, to $299.7 million.