Breeze Airways said Thursday that it had its first profitable quarter since its launch in 2021, a stark contrast with its other ultra-low-cost rivals that have struggled in recent years.
Breeze reported that its revenues were up 78% during the fourth quarter compared to the same time last year.
The ultra-low-cost carrier relies on a business model that connects travelers from areas with little commercial air service to popular leisure destinations.
Lukas Johnson, Breeze’s chief commercial officer, told Skift that he believed the carrier’s premium offerings played a role in its profitability.
“We always have this vision of great guest service, elevated product, and a plane that was just the right size to serve all these markets that had lost service,” Johnson said. “And what we’re seeing now is that it kind of unlocked really a whole new niche.”
The landscape for ultra-low-cost carriers since the pandemic has been grim. Spirit Airlines and Frontier Airlines have struggled to be profitable as engine issues and growing demand for premium products has eaten away at the business model. Last year, Spirit filed for Chapter 11 bankruptcy and recently said it would cut 200 jobs.
In an effort to attract more high-spend travelers, Spirit and Frontier have also started offering premium products. Breeze has offered premium fares since its launch, giving those who select its “Nicest” fares free Wi-Fi, bags and roomier seating.
Johnson said the company has seen success with its point-to-point business model.
“When you’re looking at fishing in the same pond, the same exact style market in the same, very similar types of guests, versus we are doing something completely new and different,” he said.
When asked about a potential IPO, Johnson said it was “under consideration.”
“We’ve had a breakthrough quarter,” he said. “Now it’s about replicating that and making sure we can show the public that this is a growing and sustainable model.”
Airlines Sector Stock Index Performance Year-to-Date
What am I looking at? The performance of airline sector stocks within the ST200. The index includes companies publicly traded across global markets including network carriers, low-cost carriers, and other related companies.
The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more airlines sector financial performance.
Read the full methodology behind the Skift Travel 200.
