Ryanair CEO O’Leary: Less than 5% Likely to Pay for Starlink Wi-Fi
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 21 2026
0mins
Should l Buy RYAAY?
Source: stocktwits
- Low Willingness to Pay: Ryanair CEO Michael O’Leary stated that less than 5% of passengers are expected to pay for Starlink Wi-Fi services, indicating a reluctance among customers to incur additional costs, which could impact the airline's future revenue growth.
- Heavy Cost Burden: Should Ryanair opt to equip its fleet with Starlink hardware, it would face an increase in fuel and installation costs ranging from $200 million to $250 million, placing financial strain on the company and limiting its ability to invest in technological upgrades.
- Investment Opportunities Limited: O’Leary expressed openness to investment from SpaceX CEO Elon Musk but highlighted that non-European citizens cannot own a majority stake in European airlines, which restricts potential external investors and affects the company's capital structure and growth strategy.
- Market Reaction Tepid: Ryanair shares fell 0.2% in pre-market trading on Wednesday, reflecting market concerns about the company's future profitability, while retail sentiment on Stocktwits trended in the 'extremely bullish' territory, indicating a divergence in investor perceptions of the company's potential.
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Analyst Views on RYAAY
Wall Street analysts forecast RYAAY stock price to rise
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Current: 64.470
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About RYAAY
Ryanair Holdings PLC is the leading airline group by passenger numbers in Europe. The company employs a low-cost no-frills model to offer low fares to leisure customers on short-haul intra-European routes. In 2020, the most recent pre-pandemic fiscal year, the company carried 149 million passengers, utilizing a fleet of 467 Boeing 737 aircraft across its 1,800 routes. To keep costs low the company serves predominantly lower-cost secondary airports. The company generated sales of EUR 8.5 billion in fiscal 2020.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Exploitation of Regulatory Gaps: Operating from his home near London, Zamora Yrala exploited vulnerabilities in the tightly regulated global aviation supply chain by selling parts that were either entirely counterfeit or accompanied by forged documentation, revealing significant regulatory failures within the industry.
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- Impact on Airlines: Major airlines including Delta Air Lines, American Airlines, and Ryanair were forced to conduct costly inspections and engine teardowns on aircraft fitted with AOG-supplied parts, significantly increasing operational costs and disrupting flight schedules.
- Exploitation of Regulatory Gaps: Operating from his home near London, Zamora Yrala exploited vulnerabilities in the tightly regulated global aviation supply chain by selling parts that were either entirely counterfeit or accompanied by forged documentation, revealing significant regulatory failures within the industry.
- International Attention: The case gained international attention as forged certification paperwork was discovered across multiple regions, including North America, Europe, Africa, and Asia-Pacific, highlighting the global and complex nature of the counterfeit aircraft parts issue.
See More
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- Court Ruling: The Commercial Court No. 12 of Barcelona has ordered Ryanair to comply with a July 2025 ruling, warning that failure to do so may result in criminal charges, reflecting the court's strict stance against the airline's unfair competition practices.
- Compliance Deadline: Ryanair has been given a 10-day deadline to withdraw denigrating content and publish a formal rectification on its website; failure to comply will incur monthly coercive fines, increasing the pressure on the airline to adhere to the ruling.
- Legal Consequences: The court has warned that Ryanair officials could face criminal investigation if they continue to disobey the orders, emphasizing the strict penalties under Spanish law for persistent disregard of judicial mandates.
- Ongoing Violations: Despite previous rulings, Ryanair has repeatedly violated court prohibitions, demonstrating a blatant disregard for the law, and the latest order serves as a final warning against its continued non-compliance.
See More
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- Maintenance Facility Development: Ryanair has reached a provisional agreement with CFM International to establish two engine maintenance facilities in Europe, with the first potentially opening in 2028, thereby enhancing its autonomy in engine maintenance.
- Long-term Parts Supply: The agreement secures Ryanair's direct procurement of over $1 billion in engine parts from CFM over the next 15 years, helping the airline lock in critical resources amid ongoing supply shortages in the aviation industry.
- Sustaining Cost Advantage: By investing in its own maintenance capabilities, Ryanair aims to maintain its cost advantage during manufacturing bottlenecks, reducing reliance on third-party maintenance services and enhancing its competitive position.
- Industry Dynamics Impact: CFM anticipates that the agreement will alleviate pressure on its repair operations while shifting part of the workload to Ryanair's future facilities, optimizing overall maintenance resource allocation and improving industry efficiency.
See More
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- EU Pilot Launch: Starlink has signed a deal with Spanish telco MasOrange to initiate its direct-to-cell satellite internet service in Valladolid, Spain, marking its first pilot in the European Union.
- Technology Expansion: This partnership positions MasOrange as the first European telco to offer direct-to-device satellite connectivity after Ukraine's Kyivstar, further advancing Starlink's technology deployment in the region.
- Market Potential: Starlink's direct-to-cell technology is expected to enhance internet connectivity for users in remote areas, addressing the growing demand for high-quality internet services and presenting significant market expansion opportunities.
- Future Outlook: As Starlink expands in the EU, it is anticipated to attract more telecom companies, promoting the proliferation of satellite internet services and enhancing overall industry competitiveness.
See More
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- Service Expansion: United Airlines has announced an expansion of its partnership with Elon Musk-backed Starlink satellite internet service, now available on over 300 aircraft, nearly covering its entire regional fleet, with plans to extend to over 800 aircraft by year-end, significantly enhancing passenger internet access.
- User Base: The service is currently utilized by over 7 million passengers, and it is free for MileagePlus members, which not only boosts customer loyalty but also has the potential to attract new users, enhancing the airline's competitive position in the market.
- Industry Dynamics: Despite Ryanair CEO O'Leary's concerns about fuel drag penalties associated with Starlink, he anticipates that all airlines will eventually offer free in-flight Wi-Fi, indicating a gradual acceptance of this technology across the industry and its future ubiquity.
- Stock Performance: United Airlines' stock surged 4.92% at market close on Monday and climbed an additional 0.34% in after-hours trading to $107.72, reflecting positive market sentiment regarding its business expansion and growth potential.
See More
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- Future Wi-Fi Trends: Ryanair CEO Michael O'Leary predicts that most airlines will offer free Wi-Fi on short-haul flights in the future, although current implementation is hindered by technological limitations and fuel cost considerations.
- Exploring Tech Partnerships: Ryanair is in talks with SpaceX-backed Starlink, Amazon's Leo, and Vodafone Group for Wi-Fi services, but O'Leary believes only 5-10% of passengers would pay for it, indicating limited market demand.
- Poor Financial Performance: In its latest earnings report, Ryanair reported an EPS of 7 cents, significantly below the expected 18 cents and down from 30 cents a year ago, highlighting the company's profitability challenges.
- Antitrust Fine Impact: Ryanair has also paid a $351 million antitrust fine, which is still under appeal, further straining the company's finances and impacting its future investment capabilities.
See More
