American Airlines Taps Starlink for 1,000-Plus Jets as SpaceX Pushes Into Terrestrial Wireless

SpaceX shares gain 3.3% to EUR 147.92 as American Airlines plans fleet-wide Starlink internet and an 800 MHz spectrum deal pressures US carriers.

SpaceX shares advanced 3.3% on Friday to EUR 147.92, extending a recovery that has been building over recent sessions from Thursday's close of EUR 143.22. The gain came as two separate developments — a sweeping inflight connectivity deal and a contested spectrum acquisition — reinforced the company's push to become a broadband player on the ground as well as in orbit.

American Airlines Goes Fleet-Wide

American Airlines is set to equip its entire mainline fleet with satellite internet, according to media reports, covering more than 1,000 aircraft. The rollout includes over 530 Boeing jets. Installations are slated to begin in 2027. Neither party disclosed financial terms, but the agreement hands SpaceX another marquee customer in the market for connectivity aboard commercial airliners.

A Spectrum Bet That Rattles the Carriers

The stock's momentum also drew support from SpaceX's planned expansion of mobile services. Per Reuters, the frequency agreement with Grain Management acted as a near-term catalyst. Under the deal struck Thursday, SpaceX takes over a nationwide portfolio of up to 14 MHz of paired spectrum in the 800 MHz band. The Wall Street Journal reported a cash consideration of roughly USD 8 billion, though the parties have not officially confirmed the exact figures. The transaction still requires approval from the US telecom regulator, the FCC.

Strategically, the move is notable for what low-band airwaves can do. Frequencies in the 800 MHz range are prized for carrying signals reliably through thick walls and into enclosed spaces. Starlink Mobile has so far leaned primarily on spectrum around 2 GHz, which delivers solid bandwidth but struggles with structural obstacles. If SpaceX manages to combine its low-earth-orbit satellites with terrestrial frequencies, Starlink Mobile could mature into a serious US network operator — a prospect that pressured AT&T, Verizon and T-Mobile US shares immediately after the deal became public.

Regulators and a Steep Build-Out Bill

The FCC has separately cleared the operation of 15,000 second-generation Starlink satellites for direct-to-device connections, and SpaceX has noted that this generation is optimized for worldwide 2 GHz spectrum. Even so, approval of the specific wireless licenses tied to the Grain transaction is far from guaranteed, and the agency has deferred some of the company's other network expansion applications.

Costs beyond the spectrum itself loom large. Analysts at Bernstein estimate that building a full terrestrial network would run between USD 50 billion and USD 130 billion. SpaceX would need to lease or erect tens of thousands of its own cell towers to blanket densely populated areas — a multi-year undertaking that would absorb enormous liquidity.

A Parallel Funding Push Weighs on the Story

That capital need arrives alongside a separate, hefty financing effort. Reuters and the Financial Times report that SpaceX is negotiating a USD 40 billion package to purchase Nvidia AI chips, with private equity firm Apollo expected to play a leading role and substantial tranches of corporate bonds forming part of the structure. Back in June, the company had already raised USD 25 billion through bond placements. Starlink revenue is growing quickly, but the cumulative obligations could narrow SpaceX's financial room to maneuver.

Analyst Notes and Launch Pad Progress

Sentiment also got a lift from the research community. Barclays initiated coverage of SpaceX on Thursday with an "Overweight" rating and a USD 254 price target. A day earlier, Charles Minervino of Susquehanna raised his target to USD 173 from USD 144, keeping a "Neutral" rating on the stock.

On the launch side, work on the Starship vehicle at Kennedy Space Center's Launch Complex 39A has entered operational and acceptance testing. Preliminary planning documents list October 19 and October 30 as the earliest possible dates for the next test flights.