American Airlines Group Inc. (NASDAQ:AAL) is betting on Elon Musk-led SpaceX to power faster in-flight internet across hundreds of planes, marking another major win for Starlink as airlines race to modernize onboard connectivity.
American Airlines Picks Starlink For More Than 500 Aircraft
On Tuesday, American Airlines announced that it plans to equip more than 500 narrow-body aircraft with Starlink satellite internet, including its Airbus A321neo fleet, early next year.
The move comes after the carrier reportedly evaluated both Starlink and Amazon.com, Inc.'s (NASDAQ:AMZN) low-Earth-orbit satellite offering Leo, formerly Project Kuiper.
"Your scrolling just got an upgrade," American Airlines said in a post on X, adding that the new service is designed for "streaming, browsing, gaming, and staying connected in real time, gate to gate."
Musk also shared the post on X, saying, "Starlink coming to American Airlines!"
Shares of American Airlines closed Tuesday up 7.18% at $14.84 and slipped 0.095% to $14.83 in after-hours trading, according to Benzinga Pro.
Starlink Expands Airline Industry Dominance
The agreement further strengthens Starlink's growing position in the airline industry, where carriers are increasingly prioritizing faster and more reliable Wi-Fi to attract higher-spending travelers.
Several major U.S. airlines — including United Airlines Inc. (NASDAQ:UAL), Southwest Airlines (NYSE:LUV) and Alaska Airlines (NYSE:ALK) — have already selected Starlink for onboard internet services.
Meanwhile, Delta Air Lines Inc. (NYSE:DAL) announced earlier this year that it plans to use Amazon's Project Kuiper-powered connectivity solution on hundreds of aircraft starting in 2028.
American said it currently has no immediate plans to replace internet providers on its Boeing fleet, which uses a mix of Viasat and Panasonic systems, CNBC reported.
SpaceX Pushes Beyond Rockets Ahead Of IPO
The deal also highlights Starlink's growing importance to SpaceX's broader business as the company reportedly prepares for a blockbuster public offering next month.
SpaceX disclosed earlier this month that its connectivity division, which includes Starlink, generated $11.39 billion in revenue last year, accounting for 61% of the company's total sales.
According to Benzinga Edge Stock Rankings, AAL carries a robust Growth score of 91.35%, while maintaining a bullish trend across short, medium and long-term trading periods.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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