SpaceX rushes to secure a large order from American Airlines Group Inc. (AAL.US) before its IPO: over 500 aircraft to be equipped with Starlink by 2027, with a valuation of 1.75 trillion dollars and further endorsement.

American Airlines Group Inc. (AAL.US) plans to start installing SpaceX's Starlink satellite internet service on more than 500 narrow-body aircraft beginning in early 2027. This deepens the industry competition among airlines to provide faster and more reliable onboard internet connections in order to attract high-end passengers. American Airlines Group Inc. announced on Tuesday that this deployment will cover most of its domestic and short-haul international fleet, including the upcoming Airbus A321neo and A321XLR aircraft. The service will use Starlink's low Earth orbit satellite network, which American Airlines Group Inc. says can support streaming, gaming, and video calls. Just months before launching this initiative, American Airlines Group Inc. had announced a partnership with AT&T Inc. to offer free high-speed Wi-Fi to its AAdvantage frequent flyer program members, predominantly supported by Viasat Inc., with equipment provided by International Communications Satellite(Intelsat). This deployment began earlier this year, aimed at closing the gap with competitors who increasingly rely on high-end amenities and onboard technology upgrades to attract high-spending customers. American Airlines Group Inc. has been playing catch-up with United Airlines (UAL.US) and Delta Air Lines, Inc. (DAL.US) after the two companies had already begun focusing on high-end services earlier on. Heather Hargreaves, Chief Customer Officer of American Airlines Group Inc., said, "As a premium global airline, we are constantly seeking world-class partners like Starlink to provide the services our customers need and want." Airlines are increasingly turning to Starlink to improve intermittent onboard internet services. United Airlines has already started deploying satellite Wi-Fi on some of its regional fleet and plans to eventually expand it to a wider range. Southwest Airlines Co. also announced earlier this year its plans to equip more than 300 aircraft with Starlink internet by the end of 2026, with the first aircraft to be operational this summer. Meanwhile, Delta Air Lines, Inc. has chosen to provide onboard Wi-Fi through Amazon.com, Inc. Delta Air Lines, Inc. CEO Ed Bastian said in an interview last week that Amazon.com, Inc.'s products not only provide satellite internet service but also bring a wider range of entertainment and retail functions. As airlines compete for high-end passengers, they are not only deploying faster Wi-Fi. They are also investing billions to upgrade VIP lounges, seats, and frequent flyer programs. American Airlines Group Inc. said the installation of Starlink will begin in the first quarter of 2027. The airline currently operates over 6,000 flights per day to more than 350 destinations in over 60 countries. A spokesperson for American Airlines Group Inc. said that other aircraft not equipped with Starlink will continue to use Wi-Fi provided by Viasat and International Communications Satellite(Intelsat), under SES SA. SpaceX's Sprint for the Largest IPO in History: Starlink Becomes an Important Cash Cow In 2026, SpaceX is pushing forward with its largest-ever IPO, aiming for a valuation of up to $1.75 trillion to $2 trillion, potentially breaking the $29 billion financing record set by Saudi Aramco in 2019. At this critical juncture, American Airlines Group Inc. announced a Starlink service agreement with SpaceX, which not only endorses Starlink's technological strength but also reflects SpaceX's strategic intent to accelerate the capture of high-value B2B markets on the eve of its IPO. In-flight network market landscape: from GEO monopoly to LEO disruption The global in-flight Wi-Fi market is undergoing a structural transformation. According to market research firm data, the global in-flight Wi-Fi market was approximately $6.4 billion in 2025, and is expected to grow to $16 billion by 2034, with a compound annual growth rate of approximately 14%. For a long time, the market has been dominated by traditional suppliers such as Viasat, Intelsat (a subsidiary of the SES group), Panasonic Avionics, and Gogo, who rely on geostationary orbit (GEO) satellites for coverage, but face inherent limitations in bandwidth and high latency (about 600 milliseconds). Starlink has achieved a disruptive breakthrough with its low Earth orbit (LEO) technology. Its satellite network has a latency of only 20-40 milliseconds, and a single aircraft can support up to 350Mbps of bandwidth, enough to support real-time applications such as streaming, gaming, and video calls. Rapid growth of the LEO satellite interconnection market As of now, Starlink has reached cooperation agreements with United Airlines (about 350 aircraft), Southwest Airlines Co. (over 300 aircraft), Hawaiian Airlines, Baltic Air, and the Lufthansa Group, covering more than 30 airlines. According to Quilty Space forecasts, Starlink's aviation revenue will grow by 68% year-on-year in 2026, becoming one of its fastest-growing sub-sectors. Market share and competitive situation Despite Starlink's rapid momentum in the aviation field, traditional giants still dominate the existing market. After acquiring Inmarsat, Viasat is estimated to hold 40%-45% of the global commercial aircraft connectivity market, with over 3,000 connected aircraft, particularly in the Ka-band services for long-haul routes. Intelsat's 2Ku system remains the factory standard for narrow-body aircraft such as Airbus A320neo/A321neo. In addition, Delta Air Lines, Inc. has chosen to collaborate with Amazon.com, Inc. to provide onboard Wi-Fi and entertainment retail integration services using its Project Kuiper satellite network, forming a differentiated competitive edge. Starlink's core advantage lies in vertical integrationfrom satellite manufacturing, rocket launches to ground station operations, all carried out independently, reducing deployment costs much lower than competitors relying on third-party launches. In 2025, Starlink achieved $11.4 billion in revenue with an EBITDA profit margin of 63%, far exceeding the traditional satellite operators' level of about 20%. However, its challenges are also significant: Amazon.com, Inc.'s Project Kuiper has deployed over 1,500 satellites and plans to reach the FCC's threshold of 1,618 satellites by July 2026; AST SpaceMobile has received investments from AT&T and Verizon, planning to deploy 45-60 satellites by 2026 to provide direct mobile services. Most importantly, Starlink's expansion speed highly depends on SpaceX's own rocket launch pace, as any delay in Falcon 9 or Starship missions will directly affect the progress of constellation construction. Deep logic of IPO valuation SpaceX's trillion-dollar valuation is not only based on its existing business. Its S-1 filings show that its total revenue was about $15-16 billion in 2025, with Starlink contributing about 70% ($11.4 billion), but the company as a whole incurred a net loss of $4.9 billion due to the merger with xAI. Investors are betting on the long-term narrative of the "space infrastructure platform": from satellite internet to orbital data centers, and to the cost revolution brought by interstellar spacecraft launches. The value of this order from American Airlines Group Inc. lies in providing a verifiable commercial landing scenario for this narrativewhen airlines are willing to pay upfront for Starlink and commit to major fleet upgrades, it signifies industry recognition of the sustainability of its high-margin B2B business.