Scott Kirby, the CEO of United Airlines is already noticing customers switch from rival carriers because of its partnership with Starlink, the satellite internet service operated by Elon Musk’s SpaceX. According to the remarks made during a CNBC interview and the company's latest earnings discussion, the airline views the rollout as a key competitive advantage. Kirby highlighted that the carrier is expected to cross the milestone of having Starlink installed on more than 50% of its flights this week and that the entire fleet is expected to be equipped with the service by the end of next year, according to a Benzinga report citing the interview. "We already see customers moving from other airlines today," Kirby said when discussing the impact of the onboard internet service. However, he added that it remains unclear whether the benefit will be large enough on its own to help deliver double-digit profit margins.
Elon Musk: 'Starlink moves the needle'
Kirby's comments quickly drew a response from Musk on X. Replying to a post that highlighted the interview, the billionaire wrote: "Starlink moves the needle." The exchange adds to Musk's long-running efforts to promote Starlink's aviation offering as a key differentiator for airlines seeking to improve onboard connectivity. United Airlines calls Starlink a 'tailwind'
Speaking during the airline's earnings call, Kirby described Starlink as a "tailwind" for the company and said United has launched a tracking tool that allows passengers to check whether their upcoming flight is equipped with the service.
Kirby also expressed confidence that the airline is building a significant lead over competitors.
"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," he said, according to the Benzinga report. The comments suggest that United views onboard connectivity as more than just a passenger convenience feature, seeing it instead as a tool for attracting and retaining travellers.
Earnings miss amid higher fuel costs
The remarks came as United reported quarterly earnings that fell slightly short of Wall Street expectations. The airline posted earnings of $2.54 per share, below analyst estimates of $2.59 per share. Revenue of $17.875 billion also narrowly missed the consensus forecast of $17.888 billion.
United said fuel expenses rose by $1.8 billion year-over-year, driven largely by energy market disruptions linked to the Iran war. During the earnings call, Kirby warned that elevated oil prices could continue to pressure the airline industry over the next year.
He also said that between six and 10 U.S. airlines could lose money this year if fuel costs remain high and geopolitical tensions continue to affect energy markets.
Ongoing debate with Delta Air Lines
The latest comments come against the backdrop of an ongoing debate between Musk and Delta Air Lines over inflight internet connectivity. Delta has chosen to deploy Amazon's Project Kuiper-based internet service on its aircraft instead of Starlink. Musk has repeatedly criticised the decision, arguing that airlines risk losing customers by not adopting Starlink's network.
In previous comments, Musk warned that Delta could lose passengers because of its decision and even mocked the carrier's onboard connectivity, claiming a flight without reliable internet would be an ideal place to isolate an AI model from online access.
With United now publicly stating that Starlink is already helping attract customers from competing airlines, the debate over satellite-powered inflight internet appears set to intensify.