New York, May 27, 2026, 04:46 EDT
American Airlines Group Inc. shares are coming into Wednesday with a lift after the airline said it will put SpaceX’s Starlink Wi-Fi on more than 500 narrowbody jets. That announcement sent the stock up 7.2% to $14.85 on Tuesday. Regular trading on the Nasdaq hadn’t started yet in New York, where pre-market session runs until the exchange opens at 9:30 a.m. ET.
Airlines are now leaning on faster in-flight Wi-Fi to go after higher-value travelers. The shift comes as onboard internet has gone from a paid extra to a tool for keeping premium customers loyal, defending fares and cutting down on complaints about poor service.
American said it plans to start installations in the first quarter of 2027 for its domestic and short-haul international flights. Financial details weren’t released. The rollout will include over 500 Airbus planes, including new A321XLR and A321neo jets, American said.
Starlink’s system relies on low-Earth-orbit satellites that fly nearer to the surface than older setups, cutting signal lag users notice when loading a page or making a call. American said passengers can stream video, play games online, or use real-time work tools with the new service during flights.
Heather Garboden, American’s chief customer officer, said the airline is “continuously seeking out world-class partners like Starlink.” Jason Fritch, SpaceX’s Starlink enterprise sales VP, said the partnership is aimed at bringing “fast and reliable internet to passengers and crew.” American Airlines Newsroom
American Airlines shares jumped 7.2% on the day, getting a lift from the Starlink news and gains across travel names. United Airlines was up 6.0%, Delta climbed 4.3%, and Southwest Airlines added 3.5%. Airline stocks outperformed.
Stocks mostly gained on Tuesday, with the S&P 500 and Nasdaq both ending at fresh highs. The Dow dropped 0.2%. Growth names led, as investors shrugged off Middle East tensions for the day.
American is trying to close the gap in a packed market. United and Southwest already have Starlink partnerships. Delta picked Amazon’s Leo satellite internet for 500 jets from 2028. The move is as much about defending ground as gaining it.
American Airlines has built connectivity into its loyalty offer. The company said in 2025 it will start giving AAdvantage members free Wi-Fi on planes with Viasat and Intelsat gear, beginning January 2026, with AT&T as the sponsor.
Cost is the issue. Fast Wi-Fi is looking more like a necessity for airlines than a source of new revenue. Valour Consultancy’s David Whelan put the Starlink bill at about $170,000 per plane before equipment and installation, depending on the carrier. Air France-KLM CEO Ben Smith told Reuters high-speed Wi-Fi is now just “a cost of doing business.” Reuters
American is still dealing with higher fuel costs. Back in April, it posted record Q1 revenue of $13.9 billion but also booked a GAAP net loss of $382 million, and said the spike in jet fuel prices could tack on over $4 billion in expenses this year. The company’s full-year adjusted EPS guidance ranged from a 40 cent loss to $1.10 a share in profit.
American is set for the Bernstein 42nd Annual Strategic Decisions Conference at 9:00 a.m. EDT Wednesday, its investor relations calendar shows. Investors could get another read on management’s tone at the event.
