TLDR
- Starlink has signed 11 new airline customers in 2026, building on 22 in 2025
- American Airlines will equip 500+ aircraft with Starlink starting early 2027
- Amazon Leo has secured Delta and JetBlue but faces setbacks from Blue Origin rocket failures
- SpaceX now holds Starlink contracts covering more than 7,000 aircraft globally
- Starlink generated $11.4 billion of SpaceX’s $18.67 billion revenue in 2025
Elon Musk’s Starlink is pulling ahead in the race to power in-flight Wi-Fi, while Jeff Bezos’ Amazon Leo is still finding its footing. Airlines are picking sides, and the competition is heating up.
Starlink signed 11 new airline customers globally in 2026 so far, following 22 deals in 2025 and just three in 2022. SpaceX now holds contracts covering more than 7,000 aircraft, according to Valour Consultancy.
American Airlines announced in late May it would install Starlink on more than 500 narrowbody aircraft starting early 2027. Southwest Airlines also chose Starlink, with its first equipped plane expected to be in service later this month and 300 more conversions targeted by year-end.
United Airlines says free Starlink Wi-Fi for MileagePlus members now covers more than 25% of its daily flights. Full fleet coverage is expected by end of 2027.
Amazon Leo Enters the Race
Amazon has secured its first airline deals, signing agreements with Delta Air Lines and JetBlue Airways. Delta selected Amazon Leo for an initial 500 aircraft beginning in 2028, building on an existing Amazon Web Services relationship.
Amazon is pitching a broader technology package beyond connectivity, including cloud services, entertainment, and retail links. That approach is attracting carriers who already have deep ties to Amazon’s business ecosystem.
But Amazon faces real obstacles. Its Leo satellite constellation has only around 330 satellites in orbit compared to Starlink’s roughly 10,000. A Blue Origin rocket explosion in May damaged ground infrastructure and slowed its launch schedule. Amazon has also selected Kenya as the site of its first African ground station, a step toward expanding its network.
The Cost of Switching
Installing satellite broadband is expensive for airlines. Jefferies analysts estimate American Airlines’ Starlink rollout could cost between $150 million and $250 million for equipment and installation alone, with annual service fees potentially exceeding $60 million.
Switching providers later adds even more cost. Aircraft must be taken out of service for installations, equipment is provider-specific, and contracts typically run for years.
Not every airline is buying in. Ryanair CEO Michael O’Leary has ruled out Starlink, citing costs and extra fuel burn from the hardware. That drew a public dispute with Musk.
For airlines that do invest, faster Wi-Fi is about more than passenger comfort. It connects travelers to loyalty programs and opens new marketing channels. Delta says more than 163 million SkyMiles members have used its free Wi-Fi since 2023.
Starlink generated $11.4 billion of SpaceX’s $18.67 billion in 2025 revenue, making it the company’s largest revenue source. First-quarter 2026 revenue came in at $3.3 billion, up 32% year over year.
Amazon stock rose 2% to $250.03 in early trading on June 9. AST SpaceMobile shares, which had been above $133 before the Blue Origin explosion, traded around $96.99.
🚨 Our MAY Stock Picks Are Live!
A new month means new opportunities. Our analysts have just released their top stock picks for May, highlighting companies with strong momentum that rank highly on our KO Score algorithm. We’re also now sharing trade ideas for both long-term and short-term investors, giving you more ways to spot potential opportunities in the market.
Sign up to Knockout Stocks today and get 50% off to unlock the full list and see which stocks made the cut.
Use coupon code Special50 for your exclusive discount!
Be the first to comment