Not entirely perfectly. It doesn’t have enough power to play back 720p mkv files (I haven’t tried the commercial mpeg4 codec which is rumoured to work well with MPC on netbooks). But normal divx/xvid at around 640 is fine through VLC. The NC10 size is perfect for the tight economy seats and it has widescreen which the airlines still haven’t. But I had 2x13hr flights with Virgin which has movie on demand, I didn’t need the NC10 at all, except the NC10 has way better LCD than the rubbish one behind the seat backs.