Ryanair Holdings plc has decided not to equip its 580‑aircraft fleet with Elon Musk’s Starlink satellite‑internet system, citing a projected 2% fuel penalty and the short duration of most of its flights.
The move underscores Ryanair’s ultra‑low‑cost strategy, which relies on keeping fuel consumption and aircraft weight as low as possible. The airline currently offers no in‑flight Wi‑Fi, so the decision is not a service change but a cost‑control measure that preserves its low‑fare model.
Competitors such as Lufthansa, United, Delta, and SAS are installing Starlink, potentially giving them a connectivity advantage on longer routes. Ryanair’s rejection highlights its focus on maintaining the lowest operating costs in the European market, even as the industry moves toward satellite connectivity.
CEO Michael O’Leary said the 2% fuel penalty would erode margins on an airline that depends on high aircraft utilisation and minimal operating costs. He also noted that passengers are unlikely to pay for Wi‑Fi on an average one‑hour flight.
The decision comes amid rising fuel costs and a tight margin environment. Ryanair’s Q3 FY24 profit fell to €15 million from €211 million a year earlier, driven by a 35% jump in fuel expenses. The airline’s focus on cost discipline remains a core competitive advantage.
By rejecting Starlink, Ryanair preserves its cost advantage and maintains its position as the lowest‑priced carrier in Europe, even as the industry moves toward satellite connectivity.
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