United Airlines to offer free Wi-Fi in deal with Starlink

By Mary Schlangenstein and Loren Grush | Bloomberg

United Airlines Holdings announced a deal for SpaceX’s Starlink to power its inflight Wi-Fi, becoming the first major US carrier to use the satellite system.

The airline will begin testing the service early next year and roll it out to passenger flights later in 2025, that companies said Friday in a statement. Starlink will eventually be available for free across the carrier’s entire fleet of more than 1,000 planes on seatback screens and personal electronic devices.

Airlines have pushed over the last several years to provide fast and reliable inflight Wi-Fi instead of the glitchy, not-always-available offering that has long plagued passengers. Expanded satellite bandwidth has helped to produce internet experiences closer to what consumers expect on the ground, an offering that vacation travelers as well as road-warrior business people see as essential.

“Aviation was the last realm of the satellite connectivity market for which Starlink has not emerged as the industry leader,” Louie DiPalma, a William Blair analyst, said in a note. “However, Starlink is positioned to have the highest aviation market share over the next decade as this landmark deal will likely lead to other wins.”

Viasat, currently one of United’s Wi-Fi providers, likely will remain the market share leader five years from now, given the industry’s slow-moving nature, he said.

The rollout of Starlink on United aircraft likely will take three years while Starlink works to receive regulatory approvals, DiPalma said, making the revenue benefit for Starlink  “almost immaterial” for the next two years.

United shares rose 0.9% at 9:37 a.m. in New York. Shares of broadband service providers Gogo Inc. and Viasat Inc., which also offer inflight Wi-Fi, both declined.

Low Latency

Starlink is SpaceX’s ever-growing internet-from-space initiative that consists of more than 6,300 satellites in a relatively low orbit around Earth. Together, the satellites work in tandem to beam broadband internet coverage to the ground below. Unlike other satellite internet systems in much higher orbits, Starlink’s closer proximity to Earth cuts down on latency, as there’s less distance for signals to travel from the ground to the satellites.

In the US, only Hawaiian Holdings Inc. and public charter carrier JSX currently use Starlink.

The Starlink gate-to-gate service on United will allow access to personal streaming services and online shopping, connect to multiple devices at once by one user and enable downloading, editing and sending of documents in real time, the companies said.

“Everything you can do on the ground, you’ll soon be able to do onboard a United plane at 35,000 feet,” United Chief Executive Officer Scott Kirby said in the statement.

The airline has Wi-Fi through several companies, including Panasonic, which provides connectivity across the globe on some Airbus SE and Boeing Co. jets, including widebody aircraft for international flights. Viasat coverage includes the US, Canada, Mexico, Central America, the Caribbean and Europe. Thales SA has service in the continental US, while Intelsat’s Gogo covers domestic markets on United regional jets.

Outside of the US, Starlink is used by Qatar Airways QCSC and Air Baltic Corp., while Air New Zealand Ltd. and ZIPAIR Tokyo Inc. have announced agreements with the company.