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CHICAGO - United Airlines has received Federal Aviation Administration (FAA) approval for its first aircraft type equipped with SpaceX’s Starlink satellite internet, with the inaugural customer flight scheduled for May. This development comes less than eight months after United announced its partnership with SpaceX. The airline, with a market capitalization of $23 billion and annual revenue exceeding $57 billion, continues to demonstrate its industry leadership as a prominent player in the Passenger Airlines sector, according to InvestingPro data.
The FAA granted a Supplemental Type Certificate (STC) for the Embraer 175, and United intends to commence its first commercial service on a United Express Embraer 175. The company plans to outfit about 40 regional jets per month with Starlink technology, aiming to equip its entire two-cabin regional fleet, comprising over 300 aircraft, by the end of this year.
In preparation for the launch, United is conducting beta tests on select flights to ensure the technology meets their standards for an exceptional passenger experience. "We’re working closely with Starlink and the FAA to finish installs on our regional fleet this year and bring the best inflight experience in the sky to more and more people," said Grant Milstead, United’s Vice President of Digital Technology.
United’s broader plan involves obtaining FAA STCs to install Starlink on every aircraft type in its fleet, which includes more than 16 regional and mainline models. The process for each STC typically encompasses design, installation, testing, and FAA approval.
The Starlink system boasts advantages over traditional inflight connectivity equipment, such as faster installation times, lighter weight leading to fuel savings, and enhanced reliability. With speeds up to 250 Mbps, Starlink will offer MileagePlus members free access to high-speed Wi-Fi, capable of supporting streaming, gaming, and other online activities. The MileagePlus program is free to join. United’s strong operational efficiency is reflected in its attractive P/E ratio of 7.3, suggesting potential value for investors. InvestingPro analysis reveals over 10 additional key insights about United’s financial health and market position.
United, which operates the most comprehensive global route network among North American carriers, is now the world’s largest airline by available seat miles. The airline’s parent company, United Airlines Holdings, Inc., is listed on the Nasdaq with the ticker symbol "UAL." For detailed analysis and comprehensive insights into United Airlines’ financial health, growth prospects, and valuation metrics, investors can access the full Pro Research Report available on InvestingPro, which provides expert analysis of what really matters for this leading airline stock.
Starlink, operated by SpaceX, provides high-speed internet globally and is the first and largest satellite constellation in low Earth orbit.
This news is based on a press release statement from United Airlines.
In other recent news, United Airlines has been navigating a series of significant developments. Fitch Ratings upgraded United Airlines’ Issuer Default Rating from ’BB-’ to ’BB’ with a positive outlook, citing the company’s reduction of its adjusted debt balance by $3 billion in 2024 and improved financial performance. This upgrade reflects United’s strong cash flow and strategic investments, including enhancements to its network and loyalty programs. Meanwhile, UBS has adjusted its outlook on United Continental Holdings, lowering the price target to $107 from $140, while maintaining a Buy rating. This change is attributed to weaker first-quarter trends and ongoing consumer softness, leading to a revised 2025 earnings per share estimate.
In another development, United Airlines announced the resumption of its New York-Tel Aviv flights following a cease-fire in Gaza, marking it as the first U.S. airline to restart this service. The company also plans to introduce a second daily flight to Israel. Airline stocks, including United Airlines, have experienced declines due to rising oil prices following new tariffs on imports from Canada and Mexico, which could increase operating costs. Additionally, Delta Air Lines’ lowered revenue and profit forecasts have raised concerns about potential demand and profitability challenges for United Airlines and its peers.
These recent developments highlight the dynamic environment in which United Airlines operates, with factors such as debt management, geopolitical considerations, and fluctuating oil prices influencing the company’s strategic decisions.
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