The race among airlines to attract premium passengers has turned high-speed in-flight internet into a new battleground. Once known for its disruptions and paid service model, Wi-Fi is now the stage for a growing rivalry between Elon Musk’s Starlink system and Jeff Bezos’s Amazon Leo satellite network.
Starlink secured 11 new airline customers in the first part of the year, signing 22 new deals in 2025 and 8 in 2024, compared to only 3 in 2022. According to aviation intelligence firm Valour Consultancy, Starlink is emerging as one of the fastest-growing players in global aviation.
Starlink Expands Its Early Lead
Operating about two-thirds of SpaceX’s satellites in orbit, Starlink stands out in in-flight connectivity for its speed and ease of installation. Ookla’s assessments show Starlink operates several times faster than older generation systems.
Southwest Airlines announced it chose Starlink to enter the market quickly but did not completely rule out Amazon Leo. Tony Roach, the company’s customer and brand officer, mentioned that multiple options are available. American Airlines revealed plans to equip over 500 narrow-body aircraft with Starlink starting early 2027.
United Airlines also stated that its free Starlink Wi-Fi service covers more than 25% of daily flights for MileagePlus members, aiming for full fleet coverage by the end of 2027. United CEO Scott Kirby said this would create a decisive advantage over all other airlines.
Amazon Leo Gains Its First Customers
Amazon is still in the process of building its Leo satellite constellation. The company reportedly faces some setbacks following last month’s Blue Origin rocket failure. Nevertheless, Amazon has secured its first customers, signing agreements with Delta Air Lines and JetBlue Airways.
Delta plans to use Amazon Leo on 500 aircraft starting in 2028, building on its relationship with Amazon Web Services. Amazon emphasizes that it offers airlines not just connectivity but a broader ecosystem including cloud services, entertainment, and retail connections.
The investment cost for airlines is substantial. Installing Starlink or Amazon’s satellite broadband systems on large fleets can reach hundreds of millions of dollars. Jefferies analysts estimate that American Airlines’ Starlink transition alone could cost between $150 million and $250 million for equipment and installation, with annual service fees exceeding $60 million.
High Costs Demand Long-Term Commitment
Analysys Mason Research Director Lluc Palerm said the in-flight Wi-Fi market will become a competitive arena between Starlink and Amazon Leo. Palerm noted that Amazon is still in an early stage with its satellite network, placing it at a disadvantage.
Daniel Welch from Valour Consultancy pointed out that SpaceX has established a clear lead with contracts covering over 7,000 aircraft. Welch explained that switching providers is difficult for airlines because aircraft must be taken out of service, hardware is supplier-specific, and contracts typically last for years.
Ryanair CEO Michael O’Leary rejected Starlink citing costs and antenna fuel consumption, leading to a heated exchange between him and Musk.
Wi-Fi Seen as a Revenue Stream
For airlines, fast internet is no longer just an entertainment service. Companies aim to attract more customers to loyalty programs and continue sales of flights, upgrades, and credit cards even after the journey through Wi-Fi.
A 2025 study in the Journal of Air Transport Management found that Wi-Fi access correlates with increased passenger share on examined routes. Delta reported that over 163 million SkyMiles members have used free Wi-Fi since 2023, while Southwest President Bob Jordan said they want to leave passengers fewer reasons to switch to other airlines.
Starlink’s revenue in this area is also growing rapidly. According to SpaceX’s 2025 IPO filing, Starlink alone generated $11.4 billion of the company’s $18.67 billion revenue, indicating the system is becoming the company’s most important income source beyond consumer internet, including aviation.
Legacy in-flight internet providers Viasat, Intelsat, Panasonic Avionics, and Hughes still hold positions in large fleets. However, the speed, coverage, and additional service claims of next-generation Starlink and Amazon Leo networks are pushing airlines to make investment decisions in a more competitive environment in the coming years.
