Ryanair Considers Starlink Technology Despite Public Spat with Elon Musk
Ryanair has indicated it could potentially adopt Elon Musk's Starlink satellite internet technology in the future, despite a highly publicised feud between the airline's chief executive and the world's richest person. The Irish carrier's finance chief, Neil Sorahan, made the suggestion as the company raised its profit and passenger forecasts, partly attributing increased bookings to the very public disagreement.
The Feud That Fueled a Marketing Campaign
The controversy began when Ryanair boss Michael O'Leary was questioned about following competitors like Lufthansa and British Airways in installing Starlink technology across its fleet of approximately 650 aircraft. O'Leary dismissed the idea, citing that adding the necessary antennas would create a "2% fuel drag", potentially adding $200-250 million to its annual $5 billion kerosene bill.
Elon Musk responded on his X platform, calling O'Leary's interpretation "misinformed", which sparked a tit-for-tat exchange where both men labelled each other an "idiot". Rather than damaging the airline, Ryanair capitalised on the publicity by launching a "big idiot sale" campaign that poked fun at the Tesla CEO.
Sorahan described the spat as "good fun" and confirmed it had driven significant traffic to the Ryanair website. O'Leary himself revealed last week that the quarrel had increased bookings by between 2% and 3%, demonstrating how corporate conflicts can sometimes translate into commercial success.
Practical Considerations for In-Flight Connectivity
Despite the openness to future Starlink adoption, Sorahan emphasised that in-flight wifi remains a distant prospect for Ryanair. "I have been looking at wifi for as long as I have been at Ryanair," said the executive, who joined the airline in 2003. "There is still a fuel cost that we would have to absorb."
The airline faces particular challenges with implementing paid wifi services on its predominantly short-haul routes, where flights typically last between one and three hours. There are concerns that passengers may be less willing to pay for connectivity on such brief journeys compared to long-haul flights.
Sorahan clarified Ryanair's position: "We would look at whoever is the best, when the tech and price is right" for in-flight wifi solutions, suggesting the door remains open to Starlink despite the executive-level disagreement.
Improved Financial Performance and Forecasts
Alongside the Starlink discussion, Ryanair announced upgraded financial forecasts on Monday. The airline now expects to carry 216 million passengers by March 2027, demonstrating continued expansion ambitions for Europe's largest carrier.
The company revised its average fare guidance upward, now anticipating a 7% to 8% increase this year compared to previous guidance of 7%. In its third quarter ending December, average fares rose 4% to €44 (£38).
While third-quarter profit after tax fell 22% to €115 million (excluding an €85 million provision for an Italian competition authority fine that Ryanair is appealing), the airline maintains strong full-year expectations. Ryanair forecasts profit after tax between €2.13 billion and €2.23 billion for its complete financial year.
Fleet Development and Market Performance
Ryanair reported positive developments in its aircraft delivery schedule, noting that Boeing deliveries are progressing well compared to last year's challenges. The final four Max 8 models are expected by the end of February, while the newer Max 10 variant will join the fleet in spring 2027.
Despite a 1.7% drop in early European trading on Monday, Ryanair shares have demonstrated strong performance overall, rising by more than 50% throughout the previous year. The company maintains listings in both Dublin and New York, providing international investor access to Europe's dominant low-cost carrier.
The combination of strategic openness to new technology, effective marketing from executive conflicts, and solid financial performance paints a picture of an airline navigating both controversy and commercial reality with equal measures of pragmatism and publicity savvy.
