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Shares of American Airlines (AAL) rose in premarket trading on Tuesday after the carrier announced plans to install Starlink, the service operated by Elon Musk’s SpaceX, on more than 500 narrowbody aircraft starting in Q1 2027.
At the time of writing, AAL stock was up nearly 7% and was on track to hit a four-month high.
American said Starlink will enable faster streaming, browsing and real-time communication across its domestic and short-haul international flights. The airline plans to roll out the upgraded Wi-Fi service across more than 500 Airbus aircraft, including upcoming A321XLR and A321neo deliveries.
Chief customer officer Heather Garboden said the partnership with Starlink is aimed at improving the onboard connectivity experience for passengers. Garboden added, “Starlink’s high speed and low latency make the Wi-Fi more reliable, which matters when customers are trying to load pages, join real-time collaboration tools or stay connected consistently throughout a flight.”
Fast and free in-flight Wi-Fi has become increasingly important for airline passengers, helping Starlink emerge as a major connectivity provider in the aviation industry. The SpaceX-operated service already counts United Airlines, Southwest Airlines and Alaska Air among its customers.
Soon after American Airlines announced its Starlink partnership, influencer Sawyer Merritt called the development “a big deal” in a post on X. Merritt added that SpaceX has now signed three of the four largest U.S. airlines, United, Southwest and American, covering “over 2,300 commercial airplanes,” adding that “only Delta remains.”
Meanwhile, SpaceX is preparing for what could become a record-setting IPO next month. In an IPO filing earlier this month, the company said its connectivity segment, “primarily driven by Starlink,” generated $11.39 billion in revenue last year.
On Stocktwits, retail sentiment was “bullish” and it has remained the same in the past one day. In the past 12 months, AAL shares have gained nearly 30%.
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