Musk Reignites Feud With $DAL Over Wi-Fi Provider Choice

Elon Musk posted on August 19 claiming Delta customers were rebooking with rival airlines to access Starlink Wi-Fi, captioning the thread "I warned them. It will get much worse." The post drew more than 50,000 likes and 4,600 reposts within a day, reopening a dispute tied to Delta's March decision to select Amazon's Leo satellite network for free in-flight Wi-Fi, per CNBC.
Delta CEO Ed Bastian has defended the choice on price and technology, with Amazon Leo expected to begin rolling out in 2028 across 500 aircraft initially. Amazon had roughly 200 satellites in orbit as of the deal's announcement, according to GeekWire, and the Leo deal is not financially material to Amazon given its $200.6 billion in latest quarterly revenue.
Starlink, meanwhile, has continued signing airline partners including Southwest, Alaska, and American Airlines, the latter covering more than 500 narrowbody jets starting in 2027. United has 450 Starlink-equipped aircraft in service, nearly half its fleet, targeting close to 1,000 by year-end with fleet-wide coverage expected by 2027. United CEO Scott Kirby has called faster in-flight Wi-Fi a competitive advantage on multiple earnings calls.
Delta is guiding to third-quarter adjusted EPS of $2.00 to $2.50 and full-year adjusted EPS of $6.50 to $7.50, alongside a 15% dividend increase, according to CNBC, while United raised its full-year adjusted EPS guidance to $9.00 to $11.00. Both stocks are up roughly 16% year-to-date as of August 20, with the report noting that switching costs in the airline industry run deeper than in-flight Wi-Fi, and neither airline has yet reported measurable unit-revenue impact tied to connectivity.