Ryanair CEO who argued with Elon Musk over Starlink thinks every airline will have free WiFi within 5 years
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- Ryanair CEO Michael O'Leary argued with Elon Musk about Starlink last week.
- But he thinks that as the technology improves, "We'll all be offering free WiFi access."
- O'Leary said he would adopt it "in a heartbeat" if antennae didn't need to be installed outside the plane.
Free and fast in-flight WiFi could be available on every plane within five years, according to the airline boss who argued with Elon Musk over Starlink.
"I think as the WiFi technology improves over the next four or five years, we'll all be offering free WiFi access," Ryanair CEO Michael O'Leary said during an earnings call on Monday.
"Customers will use it if it's free, but if they have to pay for it, they won't use it."
The Irish budget airline is known for its no-frills offering and dedication to keeping costs low. In the last quarter, it had an average airfare of 44 euros — about $52 — while reporting after-tax profits of 115 million euros ($137 million) before an exceptional charge for a fine.
In recent months, many airlines have signed deals with Starlink, which can provide in-flight internet speeds of over 200 Mbps — faster than many home WiFi connections.
However, for Ryanair and O'Leary, cheap tickets are more important for winning customers.
"I have no doubt in my mind that a low fare will beat free WiFi on board every single time," the CEO told investors.
His weeklong quarrel with Musk was sparked by questions about the extra fuel costs incurred by installing a Starlink terminal on an airplane.
O'Leary said the aerodynamic drag would lead to a 2% increase, costing over $200 million a year and raising ticket prices. However, a SpaceX executive said in an X post that the increase was only 0.3%.
Either way, O'Leary said on Monday, any extra fuel costs would be unacceptable.
He said that Ryanair would add in-flight WiFI "in a heartbeat" if the technology improves so that antennae don't need to be installed outside an airplane's fuselage.
O'Leary suggested that, in the next few years, such antennae could instead be installed in the hold.
Ryanair is continuing discussions with Starlink, Amazon, and the British telecoms firm Vodafone, he said.
Some of these operators believe that at least half of passengers would pay for in-flight WiFi, O'Leary said on the call, but he thinks no more than 10% would do so.
Every Starlink-airline deal so far has included free access for all passengers, although many mandate signing up for loyalty programs.
Ryanair's spat with Musk also garnered "lots of free publicity," O'Leary said. The outspoken boss and the airline's social media team are known for making provocative comments to get attention.
The airline's press conference last week, promoting a sale in the wake of the argument, was covered by some 1,500 news articles across nearly 60 countries, O'Leary said on the call.