Would you switch airlines for better Wi-Fi? United Airlines says passengers are already doing it. The airline says Starlink is drawing passengers away from competitors, while SpaceX is earning billions from satellite connectivity.
Both shares climbed more than 6% following third-quarter earnings. The results revealed how the same satellite internet service is becoming financially important to two very different businesses.
“We are winning new long-term, brand-loyal United customers because they are trying us for Starlink” — United CEO Scott Kirby said in Tuesday’s earnings release.
Starlink Can Influence Passengers to Switch Airlines?
United now has Starlink on more than 640 aircraft, adding approximately three daily. Around half its flights offer the service free to MileagePlus members. More than 5.4 million passengers experienced it in September.
The airline says customer-service scores on Starlink-equipped planes are nearly double those with other Wi-Fi systems.
Kirby expects Starlink to boost revenue per available seat mile in 2027. United projects 87% coverage by June and fleet-wide availability by year-end.
However, Kirby acknowledged during Wednesday’s earnings call that evidence of passengers switching airlines remains largely anecdotal. United has not quantified the additional revenue Starlink generates.
SpaceX Is Already Counting the Money
At SpaceX, the financial impact is clearer.
Its connectivity division, which includes Starlink, generated $5.25 billion in Q3 revenue, up 69% annually. Operating income nearly doubled to $2.37 billion.
According to its SEC earnings release, SpaceX reported $14.6 billion in total revenue and $4.4 billion in net income.
Its AI division generated even more sales, at $7.56 billion, although connectivity remained its largest source of operating profit.
For investors, the connection is significant. United believes satellite internet can attract customers from competing airlines. SpaceX is already earning substantial profits from a growing connectivity business that serves airlines and other customers.
Is Starlink Really Driving the Stock Rally?
United’s rally also followed record quarterly revenue of $17.9 billion and resilient passenger demand, despite higher fuel costs and disappointing profit guidance.
SpaceX’s gains came alongside an earnings beat, surging AI sales and Musk’s disclosure of possible merger discussions with Tesla.
Starlink alone cannot explain either rally. However, the latest earnings suggest satellite connectivity is becoming an important commercial advantage for United and a major profit engine for SpaceX.
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