Ryanair CEO Doubts Starlink Wi-Fi Demand, Says Elon Musk Is Welcome To Invest

• O’Leary said that talks with Starlink have been ongoing for 12 months as the low-cost airline considered adding the satellite internet service to its fleet.
• The airline’s CEO added that he was looking for a provider willing to invest in installing Starlink on the company’s fleet of over 600 jets.
• He stated that investing in Ryanair would be “significantly better” than the returns that Musk is generating from X.

Ryanair Holdings (RYAAY) CEO Michael O’Leary on Wednesday said that less than 5% of the airline’s customers are likely to pay for in-flight Starlink Wi-Fi services.

Addressing reporters, O’Leary explained that the airline cannot afford the $200 million to $250 million increase in fuel costs and installation expenses that Ryanair would have to bear if it were to equip its fleet with Starlink hardware.

“If you want passengers to pay something modest like a euro, two euros or $3 on our average one-hour-fifteen-minute flights, we think less than 10%... I think that’s even optimistic.. I think less than 5% of the passengers will take this,” O’Leary said.

The Ryanair CEO also said he would welcome an investment from SpaceX CEO Elon Musk, but pointed to rules for the ownership of European airlines. “He's free to do so at any time, but non-European citizens cannot own a majority of European airlines," O'Leary said.

Ryanair shares were up more than 1% in Wednesday’s pre-market trade. Retail sentiment on Stocktwits around the company trended in the ‘extremely bullish’ territory at the time of writing.

Talks With Starlink For Over 12 Months

O’Leary added that talks with Starlink have been ongoing for 12 months as the low-cost airline considered adding the satellite internet service to its fleet. However, Ryanair has not signed up yet due to cost concerns.

The airline’s CEO added that he was looking for a provider willing to invest in installing Starlink on the company’s fleet of over 600 jets. He stated that investing in Ryanair would be “significantly better” than the returns that Musk is generating from X.

‘Twitter Tantrum’ Boost

O’Leary also stated that Musk’s “Twitter tantrum” has provided a “wonderful boost” to the booking volumes at Ryanair.

“They're up about 2% or 3% in the last five days, which, given our volumes, is a very significant boost,” he added.

The low-cost carrier launched a “Big ‘Idiot’ Seat Sale” amid the ongoing feud with Musk, offering 100,000 seats in February, March and April at a starting price of £16.99 ($22.79).

£1 = $1.34

RYAAY stock is down 5% year-to-date, but up 67% over the past 12 months.

Also See: Trump’s Greenland Threat Reportedly Nudges Danish Pension Fund To Plan Exit From United States’ Treasuries: ‘The US Is Basically Not A Good Credit’

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

Share

·

Add us on