Breeze Airways has turned a profit for the first time since the airline began operations in May 2021. While coming out of a pandemic usually isn’t the best time to start an airline, travel boomed after the Covid-19 lockdown restrictions started to ease but, by all accounts, Breeze struggled mightily.
The airline, founded by serial aviation entrepreneur David Neeleman, who also founded Morris Air, WestJet, JetBlue Airways, and Azul Brazilian Airlines, is privately owned so it doesn’t have to report earnings to shareholders but it does have to report some financial metrics to the Department of Transportation (DOT) which had some truly horrible financial numbers in the early years.
Throughout 2024, the airline’s financial performance improved dramatically and, in March, the airline celebrated its first month of operating profit. The airline turned another profit in April but presumably dipped back into the red in the months that followed.
Finally, to close out 2024, the airline announced its first full quarter of operating profit. Breeze generated more than $200 million in revenue with an operating margin of more than 4% in the fourth quarter. To highlight just how much the airline has improved year over year, its total revenue for the year ending December 31, 2024, was over $680 million, an increase of more than 78% from 2023.
Breeze Airways Chief Executive Officer, David Neelman, had this to say about the profitability milestone:
“This milestone is a major accomplishment for Breeze and a strong testament to the hard work, dedication, and determination of our more than 2,000 incredible Team Members. In under four years, we have managed to grow and expand Breeze at an unprecedented rate while establishing a robust presence in dozens of underserved markets across the U.S. Most importantly, we’ve done so safely, providing millions of people access to efficient, affordable, and elevated air travel. It’s clear our hybrid model – one we refer to as ‘Nice Low-Cost Carrier, or NLCC’ – is not just working, but thriving.”
While Breeze considers itself a premium leisure low-cost carrier, it operates a route network that is very similar to ultra-low-cost carrier Allegiant. Breeze operates a point-to-point business model which centers around serving secondary airports that have been abandoned by major carriers.
The airline notes that, as of December 2024, Breeze was the sole carrier serving 87% of its 220 nonstop routes. That’s quite the competitive value proposition. The airline has shown that it is willing to remove service quickly if routes are not profitable and aggressively go after competitors in markets where it wants an increased presence.
While I haven’t personally flown on Breeze, As they have largely stayed out of Texas, I’ve heard good things from those who have. The airline has an extremely young fleet and, on most aircraft, a true premium seat option. Most revenue service is now flown using Airbus A220 aircraft with Embraer 190s being used for charter operations and select revenue flights.
While many travel writers, including myself, thought the writing was on the wall for Breeze shortly after it started flying, the carrier has turned in its first ever profitable quarter to close out 2024. With carriers like Spirit and Silver filing for bankruptcy, it’s great to see a new entrant having success.
Summary
Breeze Airways closed out 2024 with its first ever profitable quarter. The airline has shown drastic financial improvement year-over-year and is entering 2025 on a positive note. While the airline struggled early on, we should have learned by now not to bet against David Neeleman.
(Images courtesy Lorenz von Schimonsky. You can find more of his work on Instagram at @abia.spotter.)
