DAL Stock In Focus: Elon Musk Takes Aim At Delta Over Starlink As United Airlines Expands In-Flight WiFi

• Elon Musk warned Delta could lose customers by not using Starlink, while United expands Starlink across its fleet. 
• Delta plans Amazon Leo WiFi from 2028. 
• BMO analyst Michael Goldie cut Delta’s price target to $100 from $105 as higher fuel costs pressure the airline. 

Delta Air Lines (DAL) is facing fresh attention over its in-flight internet strategy after Elon Musk warned that the airline could lose customers over its decision to use Amazon Leo instead of SpaceX’s Starlink.

The jab comes as its rival United expands Starlink across its fleet. Separately, BMO Capital has trimmed its price target on DAL, citing higher jet-fuel prices.

Delta Air Lines stock edged 0.5% lower overnight, ahead of Tuesday. The stock is on track to reverse two straight months of losses with over a 7% gain in September. 

Elon Musk Takes A Dig At Delta Air Lines

Elon Musk, who leads SpaceX and Starlink, responded to a X post highlighting the growing availability of Starlink on United Airlines (UAL) aircraft. 

Musk wrote that Delta “will lose a lot of customers,” adding to the debate over whether onboard connectivity could influence travelers’ airline choices.

United has already equipped more than 600 aircraft with Starlink, representing roughly 36% of its fleet, according to the post Musk responded to. The airline expects the service to reach its entire fleet by the end of 2027, giving passengers broader access to high-speed internet while flying.

Delta Is Betting On Amazon Leo

Delta, meanwhile, has chosen a different technology provider. The airline plans to introduce Amazon (AMZN) Leo-powered WiFi beginning in 2028 instead of using Starlink. The contrasting approaches have put Delta and United under greater scrutiny as airlines compete on the passenger experience beyond fares and flight schedules.

Industry-wide turbulence has intensified this year because of higher fuel expenses, aircraft delivery delays and disruptions tied to the prolonged U.S.-Iran conflict, which has shaken the Middle East oil economy. Those pressures have squeezed margins across the airline industry, particularly for carriers that rely on lower-priced ticket sales. 

However, Delta Air Lines has jetted past its peers, gaining 21% so far this year. 

Fuel Costs Add Pressure For Delta 

The connectivity debate comes as Delta also deals with higher operating costs. On Monday, BMO Capital analyst Michael Goldie reduced his price target for Delta to $100 from $105 while maintaining an ‘Outperform’ rating. The new target still implies a 19% upside to the stock’s last closing price.

Goldie pointed to persistent conflict in the Middle East as a factor pushing jet fuel prices toward $4.30-$4.50 per gallon, levels near the highs seen during the spring. At the same time, demand remains resilient across different passenger segments, allowing airlines to continue raising fares, although the pace has moderated from April and May, according to BMO.

DAL Stock: Retail Stance 

On Stocktwits, retail sentiment around the stock improved to ‘bullish’ from ‘neutral’ territory the previous day. 

DAL stock has gained over 45% in the past twelve months. 

Also see: LKNCY Heads For A Red Month: Luckin Coffee Turns To Singapore, Middle East To Fuel Expansion Beyond China

For updates and corrections, email newsroom[at]stocktwits[dot]com.