Amazon (AMZN) struck a new multi‑year partnership with Delta Air Lines (DAL) to upgrade the in‑flight Wi‑Fi experience for travelers. The collaboration will bring Amazon Leo’s advanced satellite technology to Delta’s fleet. The rollout begins in 2028, with Amazon Leo initially installed on 500 Delta aircraft.
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Forget margin or options. Here's how the pros trade AMZNImportantly, the deal is widely seen as a challenge to Elon Musk‘s Starlink, which already works with airlines such as United (UAL), Alaska (ALK), and Southwest (LUV). Starlink currently has far more satellites in orbit, but Amazon is quickly ramping up its Leo launches, including the heavy-payload Leo 5 mission set to fly on an Atlas V rocket.
Smarter, More Personalized Experience
Delta, which already offers free Wi‑Fi to SkyMiles members, plans to use Amazon’s technology to improve reliability, speed, and personalization across its onboard digital services.
Each Delta aircraft will be equipped with a single phased‑array antenna based on Amazon’s Leo Ultra, supporting speeds up to 1 Gbps download and 400 Mbps upload. This will let passengers stream movies, play games, join video calls, upload content, and stay connected just like on the ground, even while flying at 35,000 feet.
The deal expands on Delta’s long‑standing relationship with Amazon Web Services (AWS). Beyond in‑flight Wi‑Fi, the companies plan to integrate AWS, Amazon Leo, and other Amazon technologies to enhance the entire travel journey, from operations to customer‑facing digital tools.
Why Does the Deal Matter?
Airlines have long struggled with slow, unreliable in‑flight Wi‑Fi, and Delta’s move shows it now sees connectivity as a core part of the travel experience rather than a premium add‑on.
The partnership also positions Delta to compete better with other carriers such as JetBlue (JBLU) and United, both of which have invested heavily in upgrading onboard internet.
For Amazon, the deal extends its reach in aviation as airlines race to improve their digital offerings. For Delta, it is a way to deepen customer loyalty and open new revenue opportunities.
Is DAL a Good Stock to Buy?
Turning to Wall Street, DAL stock has a Strong Buy consensus rating based on 17 Buy and one Hold recommendations. The average Delta stock price target of $80.41 implies an upside potential of 24.61%.
What Is the AMZN Price Target?
On TipRanks, analysts have a Strong Buy consensus rating on AMZN stock based on 42 Buy and three Hold ratings assigned in the past three months. Further, the average Amazon price target of $284.30 per share implies 37.97% upside potential.
