Breeze Airways founder and CEO David Neeleman believes the U.S. airline, launched in 2021, can eventually operate as many as 2,000 routes, 10 times the 200 it currently flies.
Neeleman cited the figure in February when discussing Breeze’s decision to exercise options for 10 Airbus A220-300s. The airline currently operates 22 A220-300s, and expects to have 32 in its fleet by the end of 2024 and 90 by the end 2028.
During a conference call with reporters, Neeleman said the airline will operate only A220-300s on scheduled service flights by the end of this year, with its 10 Embraer E190s to be dedicated to charter flights.
Neeleman pointed to the A220-200’s range, noting it can fly nonstop routes of up to 3,400 nautical miles and describing it as the ideal aircraft for long, thin routes. “We can easily go transcon,” he said.
The airline continues to focus on routes connecting larger airports to smaller markets, including transcontinental services. Recent route announcements have included service between Denver and Providence, Rhode Island; between Los Angeles and Greenville-Spartanburg, South Carolina; and between San Diego and Raleigh-Durham, North Carolina.
“Breeze’s business model is to bring air service to underserved markets across the U.S., so the vast majority of our routes have no nonstop competition,” Neeleman said, adding the “economics of the A220 are integral to that success, which enables thin routes to be profitable.”
Neeleman said it was necessary to exercise options to ensure Breeze has the capacity to grow. With A220 production slots in high demand, “you have to exercise options to get in line,” he explained. “We didn’t want to wait until 2025.”
Breeze configures its A220-300s with 137 seats, including 12 premium seats with 39-inch pitch. Neeleman said the airline is considering expanding to 16 premium seats on the aircraft. “Passengers want to be upgraded,” he noted.
The carrier, which is not publicly traded, will be profitable this year, according to Neeleman. “When you start an airline, revenue is at an all-time low and cost is at an all-time high,” he said. “When you spread the overhead across more airplanes, the cost comes down.”
Neeleman said Breeze is quickly building customer bases at the airports it serves. “On routes we’ve been on for over six months, 25% of the traffic is repeat,” he explained.
“So, that repeat business really drives profitability and then your average fares go up a little bit, and then you have this transition point where you cross and you become breakeven and then you start making a profit … We fully anticipate making a profit this year and then continue to make a profit.”
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