Key facts
- SpaceX president Gwynne Shotwell reported that customers are choosing shorter flights over direct routes to access Starlink internet.
- This trend of prioritizing Starlink-equipped flights over direct routes is a new observation for the company.
- SpaceX announced a new deal with American Airlines to equip 500 planes with Starlink.
- The company also secured new partnerships with Southwest, Virgin Atlantic, Iberia, and Aer Lingus.
- SpaceX reported $1.8 billion in quarterly revenue from enterprise and government contracts for Starlink.
- SpaceX's first earnings call as a public company revealed $7.8 billion in quarterly revenue and a $541 million net loss.
SpaceX's satellite internet service, Starlink, is reportedly influencing travel choices, with some customers opting for shorter flights to ensure they have access to the service. Gwynne Shotwell, president of SpaceX, shared this observation during the company's first earnings call as a public entity, noting it was an unexpected development.
Shotwell stated that customers are choosing shorter, hop flights over direct routes specifically to fly on planes equipped with Starlink. This behavior was described as unprecedented by the company. A similar sentiment was previously expressed by YouTuber MrBeast, who indicated he would select flights based on Starlink availability, even if it meant an additional layover.
Business Insider reached out to 13 airlines with Starlink agreements. A spokesperson for Southwest Airlines suggested Shotwell might have been referring to a different carrier, as Southwest does not operate regional jets with Starlink on varied routes. Alaska Airlines declined to comment, and other airlines did not respond by the publication deadline. SpaceX also did not provide a comment for verification.
In addition to the customer trend, SpaceX announced a significant new agreement with American Airlines to equip 500 of its planes with Starlink. The company also highlighted new partnerships with Southwest, Virgin Atlantic, Iberia, and Aer Lingus. Enterprise and government contracts for Starlink generated $1.8 billion in quarterly revenue.
During the earnings call, SpaceX reported $7.8 billion in quarterly revenue, a 92% increase from the previous year, alongside a net loss of $541 million. The company also revealed plans to develop Starlink Mobile into a full-fledged carrier. CEO Elon Musk defended the company's substantial investment in AI infrastructure, detailing future ambitions that include data centers in space.