Ryanair Rules Out Starlink Over Cost and Fuel Concerns

Ryanair has ruled out installing SpaceX’s Starlink satellite internet across its fleet following a public dispute between the airline’s chief executive, Michael O’Leary, and Elon Musk that escalated into personal insults, takeover speculation and renewed scrutiny of the economics of onboard connectivity. O’Leary said the costs associated with Starlink — including additional fuel burn caused by aerodynamic drag — would outweigh potential revenue, while European Union rules would prevent Musk from taking control of the airline even if he sought to invest.

The dispute began last week after O’Leary said Europe’s largest airline by passenger numbers would not adopt Starlink for in-flight Wi-Fi, citing the need to install two antennas per aircraft and the drag they would generate. 

“We like the Starlink system. It is a magnificent system. It works very well. But it would cost us about US$250 million a year, including an extra 2% drag that would add around US$200 million to our fuel bill,” O’Leary said in comments to Irish media.

Musk responded on X by calling O’Leary “misinformed,” prompting the Ryanair chief to reply on Irish radio: “I would not pay any attention to Elon Musk — he is an idiot.” Musk then called O’Leary a “complete idiot” and an “imbecile,” and suggested on X that he could buy Ryanair and replace its leadership. He also ran a poll asking followers whether he should acquire the airline, with about 76.5% voting in favor.

At a news conference in Dublin on Wednesday, O’Leary dismissed the takeover idea, citing EU regulations that limit foreign ownership of European airlines. “If he wants to invest in Ryanair, we would think it is a very good investment. But Mr. Musk cannot take control,” O’Leary said. He added that any investment would likely generate returns “significantly better than the returns he’s getting from X.”

Musk acquired X, formerly Twitter, in 2022 for US$44 billion following a protracted dispute with the company’s management.

O’Leary said Ryanair had held discussions with Starlink for about 12 months while assessing onboard Wi-Fi options but concluded that the economics did not work for a low-cost, short-haul carrier. Ryanair’s average flight time is about one hour and 15 minutes, and O’Leary said fewer than 5% of passengers would be willing to pay extra for connectivity.

“The Starlink people believe that 90% of our passengers would happily pay for Wi-Fi access. Our experience tells us we think less than 10% of our passengers would pay for this access,” O’Leary said, according to Reuters.

Ryanair is continuing talks with other providers, including Amazon, which is preparing to launch its Kuiper satellite network, but only “in a way that reduces our costs,” O’Leary said. He added that the airline ultimately wants to offer onboard broadband for free, but only if suppliers are willing to fund installation and accept lower passenger uptake.

The public feud has generated attention for Ryanair, which O’Leary said translated into a short-term boost in bookings. “They are up about 2% or 3% in the last five days, which, given our volumes, is a very significant boost,” he said, referring to ticket sales following the exchange with Musk. Ryanair shares rose about 2% on Wednesday, though they have moved little overall during the dispute.

O’Leary said he was unconcerned by Musk’s insults. “If he wants to call me an idiot, he wouldn’t be the first and he certainly won’t be the last,” he said, adding that his four teenage children regularly do the same. He also thanked Musk for the publicity, saying Ryanair had even launched a seat sale featuring a caricature of the billionaire.

Beyond Starlink, O’Leary used the appearance to address broader industry issues. He said average fares could rise between 2% and 4% in the coming year due to tight capacity in Europe. Asked about the potential impact of a US–EU trade dispute and possible tariffs on aircraft, O’Leary said it was too early to assess demand effects and added that he was not confident Boeing would absorb any new tariff costs.