American Airlines stock pops as free AT&T Wi‑Fi rollout kicks off, beating peers

American Airlines stock pops as free AT&T Wi‑Fi rollout kicks off, beating peers

New York, January 7, 2026, 14:25 (EST) — Regular session

American Airlines Group Inc shares rose nearly 3% on Wednesday after the carrier said it has begun rolling out free in-flight Wi‑Fi for members of its AAdvantage loyalty program, with sponsorship from AT&T. The stock was up 2.9% at $16.12 in afternoon trading, while Delta dipped 0.1%, United slipped 0.3% and Southwest added 0.8%. American touched a session high of $16.50 and has traded about 65 million shares.

The move matters because free onboard internet has turned into a loyalty weapon, not a nice-to-have, as U.S. airlines fight for repeat business and higher-spending customers. Delta started offering free Wi‑Fi in 2023 through a T‑Mobile tie-up, and United signed on with SpaceX’s Starlink in 2025, raising the pressure on rivals that still charge on many routes.

American said the satellite-based service, powered by Viasat and Intelsat, will roll out in phases starting this month across its narrowbody and dual-class regional fleets, with near systemwide coverage targeted by early spring. “Free high-speed Wi‑Fi isn’t just a perk — it’s essential for today’s travelers,” chief customer officer Heather Garboden said in a statement. AT&T executive Jenifer Robertson said the sponsorship will help members stay “productive, entertained and in touch” from takeoff to landing. American Airlines Newsroom

Fuel costs were another tailwind in the background. Brent crude was down about 0.7% and U.S. crude fell 1.3% in late morning, easing pressure on jet fuel pricing. Reuters

Regulation is also in play. The U.S. Transportation Department proposed revising its guidance to put less weight on civil fines for airlines that violate consumer-protection rules, saying enforcement will focus on compliance rather than “finding and penalizing” violations. Reuters

Still, the Wi‑Fi push is not a free win. If the rollout runs late, or if sponsorship does not cover equipment and bandwidth, the carrier risks trading a fee stream for higher costs — and airline margins can swing quickly when fuel spikes or travel demand softens.

American’s stock has swung between $8.50 and $19.10 over the past year, and Wednesday’s run pushed it back toward its recent highs. Investors will be watching for more detail on how the carrier plans to pay for the service and what it gives up in “ancillary” revenue such as Wi‑Fi fees. The next hard catalyst is the company’s expected fourth-quarter report around Jan. 22.

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