Since interchange isn’t regulated, U.S. airlines are unique in the world that they make money in large part (and in some cases only) because of their underlying credit card business. They sell frequent flyer miles to banks, and earn about 50% margins generating billions of dollars. Delta generated $6.9 billion from American Express last year.
But it turns out that airlines may be missing out on the big money? New technology makes it possible to use spare electricity on planes to mine crypto. And the company that came out with an announcement about this saw its stock immediately shoot up over 60%.
Volato Group, Inc. (NYSE American: SOAR), a leader in private aviation innovation, announces a new patent-pending technology that advances how aircraft generate revenue by repurposing underutilized aircraft resources for cryptocurrency mining.
…By default, the system operates using excess electricity generated during normal flight operations, ensuring seamless integration with no additional costs or resource demands. However, the system is designed to dynamically scale up and utilize additional onboard electricity when spoiled capacity—such as unoccupied seats or unused cargo space—occurs. This flexibility allows operators to transform inefficiencies into valuable Bitcoin assets, maximizing revenue potential while maintaining operational integrity.
They use special hardware “optimized to achieve peak performance at high altitudes” that they say is more efficient than mining crypto on the ground and their pitch is that this “secures a future where aircraft don’t just move people or goods—they actively create value through advanced computing” because of course.
Matt Levine says,
I know that when I fly in a small plane, it is important to me that none of its power goes to waste. If the person sitting next to me isn’t using her overhead light, that electricity had better be going to mining Bitcoin.
Senator Richard Blumenthal held a hearing on Wednesday to slam airlines for unbundling and charging fees. Maybe he could push the FAA to approve U.S. airlines for inflight crypto mining in exchange for free checked bags? They could probably get approval from the new administration for mining World Liberty Financial tokens?
At a minimum, airlines should be able to work out deals with CFM or Pratt & Whitney to make engines free: power by the hour, but $0 as long as the planes fly a minimum number of hours and mine enough bitcoin.
Cure cancer using AI? Nope. Crypto.
Defend the vulnerable? No. Justice can wait. Crypto.
Forever wars? Ecosystems collapsing? Affordable housing? No. Crypto! Mars!
Vapid. I hate this. All of it.
@1990
You’re such a lefty clown.
Nobody cares what you hate.
Why should we stop progressing and making money because some losers who can’t function in society will be left behind? We waste too many resources and money trying to help people who aren’t worth it. People are sick of it, life is too short to care about others.
On April 13, 2010, ABC News aired a video story titled “Paying to Pee: Have the Airlines Gone Too Far?” The plan by the Irish discount airline Ryanair to charge passengers for using the bathroom has been met with skepticism and outrage, with critics labeling it inhumane. While this cost-saving move could generate significant revenue, similar to Bitcoin, it has sparked considerable backlash. Additionally, airlines could turn human waste from passengers and pilots into a billion-dollar revenue stream that rivals loyalty programs like Delta Air Lines’ SkyMiles. I also propose implementing surge pricing for aircraft pay toilets shortly after meal service to maximize airlines’ profitability.
Yup, when a stock price jumps 60% in ONE DAY … buy that puppy … well, maybe not if it starts the day at 22-cents a share. If it actually needs mentioning, computer-airplane links don’t work well, it would take mega-mega-mega improvement to get to the point where an effective data link can respond in almost the tiniest tidbit of a second. A far better business idea is the Holy Water Plane Spray that would douse just before take-off. Automatic add-on.
@Andy
Earlier on, I was more of an idealist, but these days, I’m much more a late-stage George Carlin, ‘let it burn,’ enjoy the show kinda guy. So, feel free to label me and lob ad hominems at internet strangers. It’s somewhat fun, I guess.
You gotta admit though, crypto is a Ponzi scheme. Enjoy the pump! Watch out for the dump!
Oh Jesus Christ, “Bitcoin a Ponzi Scheme”.. nothing more said ! Total BS ! Can’t wait for all the fools to follow and have the first Bitcoin crash of 2029 !
My first salaried position as an Engineer was at a Nuclear Power Plant, and I learned a great deal about power generation and transmission. Right off the bat, I’ll point out that this is complex: The generation of power from any type of generator (including those affixed to jet engines) includes parasitic losses, mechanical transmission losses, windage, electromagnetic field anomalies, I-Squared R losses, mass moment of intertia, the list goes on. That said, there is a relationship (governed by the Laws of Thermodynamics) between electrical power consumed and shaft horsepower (which in turn drives fuel consumption of the primary driver, the jet engine). It’s certainly possible that a minor amount of electrical power is available that does not increase fuel burn, but that would likely be pretty trivial. Christmas tip to my fellow readers: Pass on buying stock in these guys.
Isn’t this just using jet fuel to mine bitcoin?
How dumb do you have to believe that this makes any sense?
There is no such thing as spare energy. There is spare capacity but any additional electrical draw increases the load on the engines which increases the fuel burn.
I bet they announce a perpetual motion machine next year, too.
@AndyS
“Why should we stop progressing and making money because some losers who can’t function in society will be left behind? We waste too many resources and money trying to help people who aren’t worth it. People are sick of it, life is too short to care about others.”
OK, you are a troll. I get that. But, in the course of the universe, you are just worthless anyway. I truly wish for you this Xmas, a large lump of coal.
1000w per unit making about $20000 per airplane a year. I’m sure you could put 10 in each airplane. They weigh nothing, supper small, and the cost to maintain them would be very minimal. Seems like a win as long as they get FAA approval. I don’t see how that would make any noticeable difference in jet fuel burned. Who cares about injustice and cancer we got bitcoin.
This is idiotic. There is no such thing as “spare” electricity on an airplane. If the load is low then the generators onboard don’t produce it. If demand is high, such as from crypto losers trying to profit off of electricity they don’t directly pay for, then the generators will produce more…and use more fuel in the process. This is just typical magical thinking from people who are scientifically and economically illiterate.
You’re not saving energy, you’re just not paying for it. If this becomes widespread then the expected higher fuel burn gets factored into the ticket price.
The only “spare” energy produced is from overcapacity of wind/solar due to free government money. By all means, mine away with that crap.
Gary. I founded three crypto companies. You have no Fing clue what you’re talking about. Stop these stupid stories please. You’re just plain wrong. Fake news. More like idiotic news.
Gary you should delete this terrible article. Seriously. You have no clue what you’re talking about and keeping this article in the long term just makes you look like a moron forever. Is that what you’re solving for here? Less respect and a foolish legacy?
Too bad they can’t mine crypto with APUs so airlines would have an incentive to fix them
@Alan Z
Hope you get cancer.
Andy, calm the F down. Jesus man. Get a grip!
@Ken A per the Irish Times: “RYANAIR CHIEF executive Michael O’Leary has come clean and admitted that his proposals to charge passengers to use the toilet on aircraft was just a cheap publicity stunt.” One should always carry a huge grain ofvsaltvaround.
But does mining Bitcoin produce anything of long-term value. It sure consumes a lot of power, but for what benefit?
A perpetual motion machine in disguise. In general, electricity is not stored in vast amounts. Yes, you can store some in the form of pumped storage but that is not ideal in many ways. To run crypto, extra fuel would have to be used unless you could generate the power during the glide before landing sort of like regenerative braking. Getting the extra equipment in the air to do this is not energy free nor cost free.
One comment talked about “Paying to Pee”. There might be somethin that. Having a larger toilet that is clean for a fee and others that are the typical cramped space for free. It would be interesting in such a situation to see if a larger clean toilet for a fee would pay for the costs it would incur.
“Having a larger toilet that is clean for a fee and others that are the typical cramped space for free.” What airlines are you flying? The only dirty bathrooms I’ve ever seen on a plane are those 10+ hours into a flight with urine soaked floors from idiots that can’t aim. I’ve never seen a lav too small, but then again I’m not obese. In my days of flying coach, I dreaded returning to my cramped seat.