United Airlines (UAL) has announced a significant move by partnering with Elon Musk‘s Starlink to offer in-flight internet services across its fleet. This development means that passengers on all UAL aircraft will enjoy free access to high-speed internet, starting early next year. The new service will allow flyers to stream live TV, use social media, and access various online features on both seatback screens and personal devices simultaneously.
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Why Is UAL Providing this Service?
Airlines are increasingly enhancing in-flight Wi-Fi to attract premium customers, particularly business travelers. Following in UAL’s footsteps, Delta Air Lines (DAL) began offering free internet to its SkyMiles loyalty program members last year. Similarly, Hawaiian Airlines (HA) and JetBlue (JBLU) have long provided complimentary Wi-Fi to their passengers.
Musk’s Starlink Is Expanding Quickly
Meanwhile, SpaceX’s Starlink, which launched in 2020, has made notable strides in expanding its satellite internet service. With around 6,000 satellites in orbit and serving over 3 million customers in 100 countries, Starlink is now extending its reach beyond rural households. This includes forging partnerships with various airlines to broaden its satellite-based internet services.
Is UAL a Good Stock to Buy?
Analysts remain bullish about UAL stock, with a Strong Buy consensus rating based on a unanimous 16 Buys. Year-to-date, UAL has soared by more than 20%, and the average UAL price target of $71.70 implies an upside potential of 40.8% from current levels.
