Elon Musk Starlink
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. 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.
Because of its partnership with Starlink, the satellite internet service operated by Elon Musk’s SpaceX, scott Kirby, the CEO of United Airlines is already noticing customers switch from rival carriers. The remarks came as United reported quarterly earnings that fell slightly short of Wall Street expectations.
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. “We already see customers moving from other airlines today,” Kirby said when discussing the impact of the onboard internet service. It’s a huge head start,” he said, according to the Benzinga report.
However, he added that it remains unclear whether the benefit will be large enough on its own to help deliver double-digit profit margins. “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. 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. During the earnings call, Kirby warned that elevated oil prices could continue to pressure the airline industry over the next year.