Can inflight internet be offered complimentary to passengers and without costing the airlines a small fortune? Historically the answer was a resounding no. But passengers typically do not want to pay a la carte for the service, despite increasingly expecting it to be on offer. Third-party funding (i.e. ad-supported solutions) theoretically solve the challenge. They’ve just never actually delivered on the financials to close the business case.
More and more, however, suppliers and airlines alike argue the numbers work. Conversations at World Aviation Festival in Lisbon this week were eye-opening on that front.
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More news from World Aviation Festival 2025
- Pushing IFE Evolution with Panasonic Avionics, United Airlines
- Arc Touts UX Improvements for Moving Map
- Making Marketing Pay: Beating Break-even with Ad-supported IFC
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It’s a useful fiction for suppliers (for obvious reasons) but also for the execs inside the airlines building the case to make the investment. But direct ad revenue really doesn’t bring in th big numbers necessary to cover the cost.
Good, free IFC is, however, increasingly table stakes for any airline above the bottom of the budget barrel, and a great IFC experience can get the passenger invested in loyalty programs, or just improve their experience of the airline product in a way that makes them more likely to choose this carrier again.
I am also generally inclined to believe there’s no way direct ad revenue can deliver sufficient cash to close the business case. The examples in the story, however, come from people and companies I believe. It certainly is not working for everyone, everywhere, all the time. But it also seems maybe it is working – or darn close – for some.