BUSINESS NEWS • GENERAL BUSINESS
January 23, 2026 at 07:57 PM UTC

Starlink In-Flight WiFi Divides Airlines Over Cost, Value and Passenger Demand

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LONDON | Jan 23, 2026 A public spat between Elon Musk and Ryanair chief executive Michael O’Leary has reignited a long-running debate in the aviation industry: is high-speed internet at cruising altitude now essential — or still an expensive luxury airlines can do without?

The disagreement centres on the cost of installing SpaceX’s Starlink satellite internet service, which Musk has been aggressively marketing to airlines as the future of in-flight connectivity.


Premium Carriers See WiFi as Non-Negotiable

For long-haul and full-service airlines competing for high-value customers, reliable in-flight WiFi is increasingly viewed as a basic expectation rather than an optional perk.

Carriers such as British Airways, Lufthansa, Scandinavian Airlines (SAS) and Virgin Atlantic have either adopted or committed to satellite-based connectivity from Starlink or rivals including Viasat and Intelsat.

“On transatlantic routes and in the United States, it has become a cost of doing business,” Air France-KLM chief executive Ben Smith said. “If you want to attract American customers, you have no choice.”

Executives and analysts say faster satellite networks now enable video calls, streaming and uninterrupted connectivity, aligning air travel with the experience customers expect in hotels or offices.


Starlink’s Edge — and Its Price Tag

Industry analysts say Starlink’s low-Earth-orbit satellites provide lower latency and more consistent coverage than traditional systems, making it particularly attractive for premium travel markets.

“I believe right now that Starlink is the gold standard,” SAS CEO Anko van der Werff said after signing up to the service.

But the technology does not come cheaply. Analysts estimate the cost at around $170,000 per aircraft, excluding installation and ongoing expenses. For long-haul airlines, the investment can be absorbed into a “freemium” model — offering free access to premium passengers while charging economy travellers or tying access to loyalty programmes.


Budget Airlines Push Back

For short-haul, low-cost airlines, the economics are far less convincing.

Ryanair, Europe’s largest airline by passenger numbers, has repeatedly ruled out installing in-flight WiFi, arguing that its customers prioritise low fares over digital connectivity.

“You wouldn’t expect the passenger experience of a long-haul flight on a budget airline,” said David Whelan, an analyst at Valour Consultancy. “If the goal is simply to move people from A to B at the lowest cost, WiFi doesn’t have to be part of that.”

O’Leary has also argued that antennas add weight and aerodynamic drag, increasing fuel consumption. Musk dismissed those claims as negligible and mocked O’Leary publicly on social media, at one point joking about buying the airline.


Will Passengers Pay?

Ryanair remains unconvinced that passengers would cover the cost themselves. O’Leary said internal estimates suggest fewer than 10% of passengers would pay even a small fee for WiFi on short flights.

“Our experience tells us we can’t justify costs of $150 million to $250 million a year,” he said. “The only way this works for short-haul airlines is if it’s free — and someone else pays.”

SpaceX did not comment publicly on Starlink’s airline pricing.


A Split Sky

The debate highlights a growing divide in aviation: while premium and long-haul airlines increasingly see high-speed WiFi as unavoidable, budget carriers remain focused on keeping costs down — even if that means staying offline at 30,000 feet.

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