American Airlines, the last major free Wi-Fi holdout, is buckling under pressure
“Raw-dogging” that next flight could get even more challenging: American Airlines is testing free in-flight Wi-Fi on a small batch of routes starting next week.
For American, which is currently one of the priciest airlines to fly if you want to scroll, it’s a bid to stay competitive. The carrier has fallen behind rivals like Delta Air Lines, which offers free Wi-Fi for loyalty members and T-Mobile users on most of its flights. United Airlines, meanwhile, is planning to offer free connection through a deal with Starlink this spring.
Many smaller carriers at least offer free messaging — something American said it planned to add back in 2017 but never did.
Free Wi-Fi could be a pricey pivot for American, which currently sells a connection plan for $35 on cross-country routes. According to a report by airline consulting firm IdeaWorksCompany, the carrier pulled in $8.4 billion in ancillary revenue (bags, Wi-Fi, in-flight meals, etc.) in 2023.
American may be willing able to swallow its Wi-Fi losses thanks to big increases in the amount it receives from co-branded credit card partners. Like Delta, American has more than doubled the cash it rakes in from credit card companies. The airline pulled in $6.1 billion from its card partners last year, a hike of 17%. It expects those payments to grow 10% per year. Delta scored an even fatter paycheck, logging $7.4 billion in credit card revenue in 2024.
