Breeze Airways Records Its 1st-Ever Profitable Quarter

Today, US premium leisure low-cost carrier Breeze Airways
reported its first full quarter of operating profit since taking flight less than four years ago. This moment marks a significant milestone for the carrier, which connects primary underserved markets using an Airbus A220 aircraft fleet.

Post-pandemic profits

The airline has seen profitability in the past. Its first month of operating profits occurred in March 2024, less than three years after commencing operations. Profits were also recorded in April, followed by a period of major capacity increases that lasted for the rest of the year.

Breeze Airways added 29 new destinations to its network in 2024, increased available seat miles by more than 52% to carry 4.2 million passengers, and boosted total revenue by more than 78% over the previous year, which culminated in the airline reporting its first full quarter of operating profit for the final quarter of 2024. Airline founder and CEO David Neeleman noted just how significant this moment is for the fledging airline:

“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.”

According to the airline, the profit comes even as Breeze’s low-cost structure results in base fare options that are “an average of 44% lower” than other carriers serving the same city pairs.

Next to no competition

One way Breeze has set itself apart over the past four years is by serving secondary airports that major carriers have largely abandoned over the past twenty years. By the end of 2024, Breeze was the only carrier on 87% of its 220 nonstop routes, with “hundreds of additional routes” in the US alone under consideration.

Speaking to Simple Flying today, Lukas Johnson, Breeze Airways’ Chief Commercial Officer, explained that the airline’s choice to fly into smaller and more convenient airports aligns with its vision of providing excellent guest service, elevating the product above what people would expect from a low-cost carrier, and flying with a plane that’s precisely the right size:

“We consider all these different markets that nobody else is able to tap into. So that’s really just kind of carving out that niche.

“87% of the airport pairs that we’re flying to, we’re the sole carrier on them. It’s that combination, nobody else is doing it with that size of plane, which is brand new and fuel efficient. Our A220 fleet is youngest fleet out there.

“It’s not only a traditional, low cost model: but we’ve got a first class section, we’ve got extra leg room, we’ve got really great onboard product that we’re proud of and guests love. So that’s kind of the keys to success.”

The local airports also benefit from the capacity that Breeze offers of 137 seats, versus the small 70-seat regional jets operated by feeder airlines and the large mainline jets of the legacy carriers, which can be harder to fill. At the end of 2024, Breeze was the number one carrier by destinations served in 24 of its 66 cities, with Johnson confirming:

“Our airport and community partners are tremendous. They get the value of connecting two points.”

This is in keeping with the airline’s mission of connecting local communities instead of regional hubs or one large airport to serve a large catchment area. In the New York City area, for instance, Breeze operates from Long Island MacArthur Airport
(ISP), Westchester
(HPN), and New York Stewart
(SFW), in addition to the traditional option of Newark Liberty International Airport
(EWR).

The choice to operate from smaller airports also means fewer waiting times for passengers and airplanes, which spend less time waiting on the ground or in holding patterns. This allows the airline’s Airbus A220 jets to be utilized more than traditional hub-and-spoke carriers, contributing to the overall reported profits. According to Trent Porter, Chief Financial Officer at Breeze Airways, the A220s had an average utilization of more than 10 hours, a 4% increase year-over-year:

“By maintaining one of the most cost-efficient structures in the industry, combined with record-breaking growth and revenues, Breeze is doing something few airlines have managed to do at this age and stage. I’m confident this is just the first of many profitable quarters to come for Breeze.”

Breeze began flying in May 2021 with a fleet of leased Embraer E190 and E195 aircraft and has since transitioned most of its scheduled service flying to its growing fleet of Airbus A220-300
aircraft. The remaining ten Embraer E190s and three E195s primarily operate charter domestic and international flights while continuing to supplement scheduled service as needed; Johnson estimates 97-98% of its scheduled operations in 2025 will be with the larger A220.

In 2024, Breeze took delivery of 13 A220s, for a total of 33 A220s in its fleet. The airline has 90 firm orders with options for 30 more through 2028.

Revenues are also rising for non-flight revenue. The carrier also introduced a cobranded credit card with Barclays, which Johnson confirmed is surpassing expectations for its adoption rate:

“I would say we crushed both our year-end estimates and our partner bank’s goals. I’m super, super thrilled with how the program is doing.”

What about international expansion?

The airline previously indicated it will be expanding into scheduled international flights sometime this year. When pressed for details regarding potential destinations, airline officials decided to provide specifics. However, they confirmed the carrier was still working with the Federal Aviation Administration ( FAA
) on obtaining the final certifications needed for scheduled commercial operations. Breeze Airways CEO Neeleman, however, was optimistic about the opportunity for expansion:

“As we move into this exciting new phase of our growth, including highly anticipated international service, we must remain hyper- focused on operating the safest, most reliable operation in the industry. I’m more confident than ever in the future of Breeze, and it’s my strong belief that we have everything it takes to continue this upward trajectory.”

One key link might be working with other airlines to support connecting travel across Breeze’s network of underserved destinations. Johnson confirmed that the airline is “actively looking” at traditional interline and connecting partners, which would help passengers from these underserved communities reach an additional batch of destinations. In the meantime, the carrier is reportedly looking to expand to Hawaii.

For the time being, Johnson confirmed the carrier is focusing on maturing the markets that it has started over the last couple of years, including key points in its East Coast network:

“One thing that’s really valuable for us is that there’s not just one single hub. We’re growing, and there’s a lot of opportunity in a lot of our different markets.

“You can see that both in the Northeast [with] Hartford and Providence, and in the Southeast, you have Charleston, Richmond, Norfolk, and Raleigh-Durham. Then, in the South, we’ve got a number of growing airports in all of the Florida destinations, and New Orleans. All these areas are growing.

“2025 is going to be a little less brand new cities and a little bit more connecting the dots and adding frequencies to different markets.”

Breeze Airways presently operates over 200 year-round and seasonal routes to 66 cities across 30 states in the US.