Amazon’s Satellite Internet Venture Signs Up Its First Airline. Here’s What We Know.

Amazon CEO Andy Jassy previously has said Project Kuiper would be a “meaningful,” yet capital-intensive, business venture. (David Paul Morris/Bloomberg)

Amazon’s satellite arm has struck a deal with a major U.S. airline in what is a first for the company.

Amazon said in a press release Thursday that JetBlue will use Project Kuiper, its low Earth orbit satellite network, to enhance free on-flight Wi-Fi. The service will be implemented on select flights starting in 2027, Amazon said.

Amazon has strayed far beyond its roots as an e-commerce platform, extending into ventures including a pharmacy service, grocery delivery, and digital streaming. Project Kuiper, established in 2019, operates as a subsidiary of the company.

In his latest shareholder letter, CEO Andy Jassy laid out his vision to deliver internet to rural communities that “can’t leverage the internet” using the Kuiper network.

“This digital divide is what Project Kuiper, our low Earth orbit satellite network, aims to solve,” Jassy wrote. “While capital intensive to launch, we believe Kuiper will be a meaningful operating income and ROIC business for us.”

Amazon aims to have 3,200 satellites in orbit “over the next few years,” Jassy added. Last month, Amazon launched an additional 24 satellites into orbit as part of the fourth Kuiper mission, bringing the standing total to 102.

The company aims to deploy 27 more satellites at the end of the month in conjunction with United Launch Alliance, a launch service provider formed in 2007 as a joint venture between Lockheed Martin and Boeing .

Amazon stock climbed 3% on Thursday. The tech-heavy Nasdaq Composite was down slightly. JetBlue rose 0.3%.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com