Airline startup Breeze Airways bags USD 200Mn in Series B funding round

American airline Breeze Airways has announced securing USD 200 million in a Series B funding round led by accounts and funds handled by Knighthead Capital Management LLC and BlackRock Inc. The company aims to use the fresh funding to expand its operations.

For the unversed, Breeze Aviation Group, Inc., trading as Breeze Airways is a low-cost U.S. air carrier headquartered in Utah. This airline startup was founded by serial entrepreneur David Neeleman back in July 2018.

Breeze Aviation Group, Inc., had earlier raised over USD 100 million and started its operations in late May. Breeze is currently serving 16 cities in the U.S. such as Charleston, South Carolina; Tampa, Florida; New Orleans, Norfolk, Virginia, Louisville, Kentucky; Hartford, Connecticut, Tulsa, Oklahoma, and Akron, Ohio.

The company is also currently operating in 39 routes. The carrier presently has 13 airplanes and has flights operating between smaller U.S. cities that have meager or absolutely no service from larger carriers.

Neeleman, who is also the CEO of Breeze Airways, had commented that the airline had over 100,000 passengers since it was launched. He added that the funding would make the airline optimistic “about some airplanes that might be accessible."

The CEO also stated that the airline had to work to develop new routes that are generally not served by other direct flights. Neeleman concluded that Breeze was profitable on a variable cost basis, especially on various routes.

Breeze Airways is presently planning to take delivery of sixty new Airbus A220 aircraft beginning from October 2021 which will be delivered for the next five years, at a rate of about one per month. The company plans to use the A220 aircraft on routes that are longer than two hours’ flight time.

Breeze Airways is currently the fifth commercial airline startup by Neeleman, including Canada's WestJet and JetBlue Airways Corp.

Source Credits –

https://money.usnews.com/investing/news/articles/2021-08-18/low-cost-us-carrier-breeze-airways-raises-200-million-in-new-funding