United Airlines Holdings Inc. (NASDAQ:UAL) is on the verge of joining an exclusive club that American Airlines Group Inc. (NASDAQ:AAL) entered earlier this month. The connection isn’t travel demand, fuel prices or summer vacation bookings. It’s a bullish chart pattern tied to trillionaire Elon Musk.
The Elon Musk Connection
On Tuesday, United announced a partnership with DIRECTV that will bring live television, including sports programming, to Starlink-enabled flights.
The move is part of the airline’s broader rollout of Space Exploration Technologies Corp.‘s (NASDAQ:SPCX) Starlink satellite internet service. Earlier this month, United launched its first international widebody flight equipped with Starlink and said it expects to install the technology on nearly 60 widebody aircraft by the end of the year.
American Airlines is also betting on Starlink. Last month, the carrier announced plans to equip more than 500 regional and narrow-body aircraft with the satellite-based internet service beginning in 2027.
The announcements highlight how airlines are increasingly embracing technology from one of Musk’s fastest-growing businesses. On Monday, Southwest Airlines Company (NYSE:LUV) rolled out Starlink Wi-Fi on a commercial flight for the first time. The stock is up over 5% in the past five trading days.
A Rare Bullish Signal
While investors focus on fleet upgrades and passenger experience, the charts are quietly flashing bullish signals.
American Airlines recently completed a Golden Cross, a technical pattern that occurs when a stock’s 50-day moving average rises above its 200-day moving average. Technical traders often view the formation as a sign of improving long-term momentum.
United appears close to generating the same signal after a strong June rally.
Chart created using Benzinga Pro
The 50-day average at $101.84 is closing in on the 200-day average at $102.42, with positive volume supporting further gains. If the crossover occurs, both airlines would share an unusual combination: bullish technical momentum and a growing partnership with Starlink.
Why Investors Are Paying Attention
For years, airlines competed primarily on fares, routes and loyalty programs. Connectivity is now emerging as another battleground.
Starlink’s low-Earth-orbit satellite network offers faster internet speeds and lower latency than many legacy inflight systems, allowing passengers to stream content, browse the internet and stay connected more seamlessly while flying.
Whether better Wi-Fi ultimately translates into higher profits remains unclear. But investors often look for companies that are improving both operationally and technically.
American Airlines has already joined the Golden Cross club. United appears poised to follow. And in both cases, Elon Musk’s Starlink is becoming part of the story.
Image via Shutterstock
