SpaceX Starlink Multiple Tailwinds Released: American Airlines Finalizes Partnership for 500 Aircraft, Military Service Fees Surge Fivefold

Tradingkey - Elon Musk's SpaceX is set to list on Nasdaq in mid-June, targeting a valuation of $1.75-$2 trillion, with the market closely watching whether its performance can support such an epic valuation.

According to prospectus data, Starlink is currently the company's sole profit pillar. Its communications business, including Starlink, generated $11.39 billion in revenue last year, accounting for 61% of total revenue. Market consensus suggests that Starlink's user growth and commercialization progress will be key variables in validating its valuation.

Today, American Airlines ( AAL) confirmed the introduction of Starlink's inflight connectivity, injecting new growth momentum into the Starlink business. American Airlines finalized an inflight network upgrade plan, intending to equip over 500 narrow-body aircraft with the SpaceX Starlink system. This further consolidates Starlink's advantage in the inflight Wi-Fi sector, as it continues to win favor with major global airlines.

In fact, until March this year, American Airlines was still comparing and filtering between Starlink and Amazon's ( AMZN) Leo solutions. According to the airline's announcement on Tuesday, equipment installation will begin early next year, initially covering Airbus narrow-body models such as the A321neo. The company also clarified that it will not adjust network partners for its Boeing fleet at this stage, which currently continues to use inflight connectivity services from Viasat and Panasonic.

On the other hand, in the US-Iran conflict, Starlink successfully implemented service price hikes due to the indispensability of its battlefield communications, directly boosting company revenue. SpaceX raised the satellite connectivity fees for LUCAS suicide drones from $5,000 to $25,000 per month—a nearly fivefold increase—doubling the operating cost per drone. Despite the Pentagon's objections to the pricing standards, it ultimately compromised given the battlefield necessity, further proving Starlink's irreplaceable role in military communications.

Additionally, Starlink holds significant potential orders. The Pentagon is planning to purchase over 3,500 additional Starshield terminal subscriptions, including 100 high-value aviation-grade services, which Reuters estimates could bring SpaceX hundreds of millions of dollars in annual revenue. Meanwhile, for direct-to-cell services targeting Iranian civilians, SpaceX has quoted a $500 million setup fee plus a $100 million monthly operating fee; if an agreement is reached, it will become another major revenue growth driver.

In the long run, Starlink's industry barriers remain unshakable. With approximately 10,000 satellites in orbit, accounting for over 60% of the global total, the constellation sizes of competitors like OneWeb and Amazon's Kuiper fall far short, and the Pentagon has yet to find an alternative supplier. Furthermore, Starlink's battlefield penetration continues to deepen, covering platforms such as aerial drones and unmanned surface vessels, as the military market space steadily expands. Coupled with the commercial imperative to optimize its revenue structure ahead of the IPO, the growth certainty of the Starlink business has been further enhanced.