‘Starlink moves the needle’: Elon Musk as United Airlines CEO Scott Kirby says passengers switching airlines for Wi-Fi
Elon Musk has backed United Airlines CEO Scott Kirby's assessment that Starlink's in-flight internet service is helping the airline attract passengers from rival carriers. Musk reacted to Kirby's remarks in a CNBC interview, writing on X, “Starlink moves the needle”.
Kirby, on Wednesday, October 21, said United was already seeing customers switch from other airlines because of its Starlink-powered Wi-Fi, as the carrier accelerates the rollout of the satellite internet service across its fleet.
"We're going to cross the 50% threshold this week with 50% of flights on Starlink. By the end of next year we'll finish Starlink. We already see customers moving from other airlines today," Kirby told CNBC.
The exchange highlights how United is positioning high-speed in-flight connectivity as a competitive advantage to win over passengers who have traditionally preferred other airlines.
During the interview, Kirby was asked whether United could quantify how many passengers had moved to the airline specifically because of Starlink.
The CEO acknowledged that the evidence was largely anecdotal but pointed to the response to the airline's recent frequent-flyer status match programme, which encourages customers of competing airlines to switch to United.
"Well, It's mostly anecdotal today. I mean, some numbers though. The status match program that we did had about four times normal status match applications, as normal status match programs do," Kirby said.
He added that around a quarter of the customers who applied for the programme had either already obtained or applied for a United credit card, which he described as an indication of their intention to remain with the airline.
Kirby also explained that United operates in highly competitive markets, including Chicago, New York and Los Angeles, where passengers have multiple airline options.
Unlike airports dominated by a single major carrier, United's hubs have more customers who divide their travel between competing airlines. According to Kirby, this gives the airline an opportunity to attract passengers who previously flew with its rivals.
United is accelerating the installation of Starlink across its aircraft, with the service expected to become available across its entire fleet by the end of 2027.
The airline said on October 20 that Starlink had been installed on more than 640 aircraft, with approximately three additional aircraft being equipped every day. It is already available on around half of United's flights, including regional services.
The rollout is expected to reach 61% of departures by the end of 2026 and 87% by June 1, 2027, before covering the entire fleet by the end of next year, as per reports.
United also said that more than 5.4 million passengers experienced Starlink connectivity on its flights in September.
The service is available free of charge to members of United's MileagePlus loyalty programme across all classes of travel.
While Kirby sees Starlink as an important tool for attracting passengers, he acknowledged that the technology alone may not be sufficient to help United achieve its profitability targets.
The airline has been facing higher fuel expenses, which have put pressure on its earnings outlook. United's third-quarter fuel expenses increased 62% year-on-year, while the company expects to pay an average of $4.80 per gallon for fuel in the fourth quarter.
Asked whether Starlink could help the airline achieve double-digit profit margins, Kirby said, "Is it going to be enough to get us to double-digit margins? I don't know. It's going to be hard."
He described the service as a significant revenue opportunity, particularly as United seeks to attract passengers from competing carriers and turn them into long-term customers.
In its October 20 earnings announcement, United said it was winning new, brand-loyal customers through Starlink, while retaining them through its mobile application, onboard services and other technology investments.
The airline added that customer service scores on Starlink-equipped aircraft were nearly twice those recorded on planes offering other Wi-Fi services.
Garvit Bhirani is a journalist based in Gurugram. He is a Deputy Chief Content Producer at LiveMint, where he covers national and international news stories, focusing on accuracy and compelling storytelling for readers. <br><br> With a total of six years of experience in journalism, he has previously worked with Vaco Binary Semantics for Google, taking on the role of news curation lead, and reported from the field on health, education, and agriculture stories for 101reporters and News9. He has also served as a content editor for entertainment and news media organisations. <br><br> Garvit holds bachelor’s and master’s degrees in journalism and mass communication from Guru Gobind Singh Indraprastha University and Gurugram University, respectively. During college days, he joined India’s only non-profit student journalism network, where he anchored daily news updates and produced his own weekly show called ‘Data Fix’. <br><br> He was selected for the YES Foundation Media for Social Change Fellowship in Delhi, the Talking Data to the Fourth Pillar residential workshop, and the VOICE Fellowship in Pune. <br><br> He holds certificates in COVID-19-verification reporting, data journalism, food & agriculture, tech policy, media literacy and countering misinformation, and tackling election disinformation courses from Thomson Foundation, IndiaSpend, The Dialogue, US Mission in India, and AFP. <br><br> He can be reached on <a href="https://www.linkedin.com/in/garvit-bhirani">LinkedIn</a> or on <a href="https://x.com/GarvitBhirani">@garvitbhirani</a> on X
Get Latest real-time updates
Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More
✕
Wait for it…
Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.