United Airlines ($UAL) CEO Scott Kirby Says SpaceX's Starlink Is Already Winning Customers From Rival Carriers...
United Airlines ($UAL) CEO Scott Kirby stated that the carrier's deployment of SpaceX's ($SPCX) Starlink satellite internet is currently its leading competitive advantage in the U.S. airline industry and is already attracting passengers away from competing airlines.
"We already see customers moving from other airlines today," Kirby said during a CNBC interview and recent industry remarks. "Free was never the value proposition. Fast is the value proposition, and there's only one option for fast. It's Starlink." SpaceX CEO Elon Musk responded to Kirby's remarks on X, writing that "Starlink moves the needle."
Key details on United's Starlink deployment and competitive positioning include:
- Fleet Rollout Milestones: Having equipped more than 640 aircraft at a pace of roughly three planes per day, United is crossing the 50% threshold of flights operating with Starlink connectivity. The carrier projects Starlink coverage will reach 61% of departures by the end of 2026 and 87% by June 1, 2027, with full-fleet installation completed by the end of 2027.
- Customer Switching & Competitive Lead: Kirby noted that passengers are actively switching to regional flights equipped with Starlink and highlighted that United has launched a tracking tool allowing travelers to check if their upcoming flight has the service. "We're on our way to being the only global U.S. airline with Starlink at scale. A lot of new customers are going to try us. It's a huge head start," Kirby said, contrasting United's rollout with rival Delta Air Lines ($DAL), which opted for Amazon's ($AMZN) satellite internet network instead of Starlink.
- Earnings & Fuel Cost Context: Kirby described Starlink as a commercial tailwind after United reported quarterly earnings of $2.54 per share (narrowly missing the $2.59 consensus estimate) on revenue of $17.875 billion (versus $17.888 billion expected), as year-over-year fuel expenses climbed by $1.8 billion amid Middle East energy market disruptions.