Frontier Airlines (ULCC) is planning to install SpaceX’s (SPCX) Starlink internet service in its aircraft beginning in early 2027. The move makes Frontier the latest major airline to choose Starlink for inflight Wi-Fi and increases SpaceX’s lead over tech giant Amazon (AMZN) in the race to provide satellite internet to commercial airlines.
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200% short exposure to AMZN with AMZOIn addition, Frontier is not the only low-cost carrier interested in Starlink. Indeed, the airline is part of the Indigo Partners portfolio, and several other carriers backed by the same private equity firm are also adopting Starlink. These include Wizz Air (WZZAF), Volaris, JetSmart, and Cebu Pacific.
More importantly, though, the wider airline industry is also moving quickly toward satellite-based Wi-Fi. Southwest Airlines (LUV) and United Airlines (UAL) have already announced plans to use Starlink, while American Airlines (AAL) said in May that it expects to install the service on more than 500 aircraft beginning in early 2027. Alaska Air Group (ALK) and Emirates have also chosen Starlink for future inflight connectivity.
Amazon Still Competing
Nevertheless, Amazon is still competing for airline customers through its Amazon Leo satellite network and has had some success so far. For instance, Delta Air Lines (DAL) selected Amazon Leo for Wi-Fi service starting in 2028, while JetBlue Airways (JBLU) became the first airline to choose Amazon’s offering last September.
However, Amazon’s satellite plans could face some headwinds after Blue Origin’s New Glenn rocket exploded during an engine test in May. The blast damaged the company’s only launchpad and delayed future launches. Since the rocket was supposed to carry Amazon’s Leo satellites, this delay could slow down Amazon’s network growth or force it to use other companies for launches.
Although Blue Origin hopes to start flying New Glenn again by the end of 2026, the setback could give SpaceX and its Starlink service more time to widen its lead in the satellite internet and in-flight connectivity market.
Is SPCX Stock a Good Buy?
Overall, analysts have a Strong Buy consensus rating on SPCX stock based on 23 Buys, four Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average SPCX price target of $245.32 per share implies 77.5% upside potential. (See SPCX Stock Forecast).
