Ryanair Considers Starlink Future Despite Public Spat with Elon Musk
Ryanair has indicated it remains open to using Elon Musk's Starlink satellite internet technology on its aircraft in the future, despite a highly publicised feud between the airline's chief executive and the world's richest person. The suggestion comes from the budget carrier's finance chief, Neil Sorahan, who stated the company would evaluate "whoever is the best, when the tech and price is right" for in-flight connectivity.
Fuel Drag Concerns Sparked Online Feud
The possibility of a future partnership emerges in the wake of a notable online exchange between Ryanair boss Michael O'Leary and Tesla CEO Elon Musk. The disagreement ignited after O'Leary was questioned about following competitors like Lufthansa and British Airways in adopting Starlink technology for its fleet of approximately 650 aircraft.
O'Leary dismissed the idea, citing that adding the necessary antennas would create a "2% fuel drag," potentially increasing the airline's annual kerosene bill by a substantial $200-250 million on top of its existing $5 billion cost. Musk responded on his social media platform X, labelling this interpretation as "misinformed," which quickly escalated into a tit-for-tat exchange where each man branded the other an "idiot."
Marketing Opportunity Boosts Bookings
Far from damaging the airline, the public spat appears to have provided an unexpected marketing boost. Sorahan described the episode as "good fun" and confirmed it drove significant traffic to the Ryanair website. O'Leary himself revealed last week that the quarrel with Musk had increased bookings by an estimated 2% to 3%, following the launch of a promotional "big idiot sale" campaign that playfully referenced the Tesla chief.
However, Sorahan tempered expectations regarding immediate implementation, noting that in-flight wifi remains a distant prospect for the short-haul specialist. "I have been looking at wifi for as long as I have been at Ryanair," said Sorahan, who joined the company in 2003. "There is still a fuel cost that we would have to absorb." The airline has concerns that passengers on its typically one-to-three-hour flights may be less willing to pay for connectivity services.
Strong Financial Performance and Raised Forecasts
Amidst the headline-grabbing feud, Ryanair also announced upgraded financial forecasts, underscoring its robust position as Europe's largest airline. The Irish carrier now anticipates carrying 216 million passengers by March 2027. It has revised its average fare guidance for the current year, expecting an increase of 7% to 8%, up from previous projections of a 7% rise. Average fares already climbed 4% to €44 during its third quarter ending in December.
The company reported a third-quarter profit after tax of €115 million, representing a 22% decline. This figure excludes an €85 million provision for a fine from the Italian competition authority, which Ryanair is contesting. Despite this quarterly dip, the airline maintains a strong full-year outlook, forecasting a profit after tax between €2.13 billion and €2.23 billion.
Fleet Delivery Progress and Share Performance
On operational matters, Ryanair reported positive developments with aircraft manufacturer Boeing, contrasting with delivery challenges experienced a year ago. The airline confirmed that the final four Max 8 aircraft are scheduled for delivery by the end of February, while the newer Max 10 model is expected to join its fleet in the spring of 2027.
In early European trading on Monday, Ryanair shares, which are listed on both the Dublin and New York stock exchanges, experienced a slight dip of 1.7%. This minor decrease follows an impressive performance throughout the previous year, during which the company's stock value surged by more than 50%.
