Delta Air Lines Inc (NYSE:DAL) signed a deal with Amazon.com Inc’s (NASDAQ:AMZN) Leo to bring low-Earth orbit satellite Wi-Fi to 500 aircraft starting in 2028. The deal snubs SpaceX’s Starlink as the rocket company reportedly moves toward filing what could be the largest IPO ever.

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Why Amazon Over Starlink

Delta chose Amazon Leo because of its existing relationship with Amazon Web Services, which already powers the airline’s internal systems. The service promises download speeds up to 1 gbps per aircraft and will be free for all SkyMiles members.

The catch is Amazon’s Leo has roughly 200 satellites in orbit. Starlink has over 10,000 and more than 10 million paying subscribers.

Amazon has been testing its ‌service with businesses and is “months away” from starting commercial service. The service will begin in small regions and expand as the satellite constellation grows.

United Airlines Holdings Inc (NASDAQ:UAL) has committed to Starlink across its entire fleet by the end of 2027. Southwest Airlines Co (NYSE:LUV) signed on last month. Alaska and Hawaiian are already live. American Airlines Group Inc (NASDAQ:AAL) is reportedly still deciding, with a decision expected within weeks.

Delta is betting Amazon catches up. Right now, Musk is winning the airline connectivity race by a wide margin.

What It Means For The SpaceX IPO

Starlink is the revenue engine behind SpaceX’s upcoming public offering. That cash flow matters more than usual because the xAI unit folded into SpaceX is reportedly hemorrhaging money, according to Axios.

Musk confirmed in December that a 2026 IPO was “accurate” but has since denied specific reports about which brokerages would be excluded, calling rumors about Robinhood Markets Inc (NASDAQ:HOOD) being shut out “false.” He reportedly plans to reserve up to 30% of shares for retail investors, triple the typical allocation.

Polymarket traders give a 52% chance SpaceX will be valued between $1.5 and $2 trillion after the IPO, with a 24% chance it lands between $2 and $2.5 trillion and just 10% odds it comes in below $1.5 trillion.

The chance of Musk becoming a trillionaire this year is at 70%, hugely dependent on the success of the upcoming IPO.

One airline choosing Bezos doesn’t dent the $1.75 trillion thesis. But if American follows Delta to Amazon Leo, prediction market traders may start repricing Starlink’s competitive moat heading into the biggest debut in Wall Street history.

Delta reports first quarter earnings on April 8 with analysts estimating 65 cents EPS on $15.08 billion in revenue, according to Benzinga earnings data. The airline has beaten EPS estimates in five consecutive quarters.

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