Since its launch in May 2021, low-cost airline Breeze Airways has been on a steady but challenging path toward profitability. However, in a significant milestone, the airline announced on January 23, 2025, that it had achieved its first quarterly operating profit in the fourth quarter of 2024. CEO David Neeleman expressed confidence that this marks a turning point for the company, predicting full-year profitability in 2025.
Breeze Airways generated over $200 million in revenue in Q4 2024, achieving an operating margin of more than 4%. While the airline did not disclose the exact profit figure, it will report the details to the U.S. Department of Transportation. The result is a major improvement from previous quarters, as Breeze had reported a negative operating margin of 20.9% in Q3 2024 and a $33.6 million loss. Similarly, Q4 2023 had seen an even steeper operating margin decline of -25.9%.
Neeleman attributed the airline’s improved financial performance to a favorable industry environment, including higher airfares and an increasing preference for premium travel options. Breeze has capitalized on this trend by offering a mix of premium and economy seating on its Airbus A220 aircraft.
A key factor in Breeze’s financial turnaround has been its strategic growth. The airline expanded significantly in 2024, adding 29 destinations and increasing its available seat miles by 52%. With a total of 66 destinations now on its map, Breeze has positioned itself as a dominant player in underserved markets.
The airline’s model is centered around connecting secondary cities that lack direct flight options. This approach has helped it establish itself as the leading carrier in 24 of its 66 markets and the sole operator on 87% of its more than 200 routes. By focusing on small airports with minimal competition, Breeze has carved out a unique niche in the industry.
One of the most notable shifts for Breeze has been the stabilization of its routes. As of early 2025, 75% of the airline’s routes have been in operation for at least six months. This has led to increased consumer awareness and improved financial outcomes, as passengers become more familiar with Breeze’s offerings.
Despite its recent profitability, Breeze Airways remains in an aggressive growth phase. The airline plans to expand capacity by an additional 25% in 2025. However, unlike 2024, which saw a rapid increase in new destinations, Breeze will focus more on strengthening existing routes and increasing flight frequencies.
Beyond domestic growth, Breeze is also setting its sights on international expansion. The airline is working toward gaining FAA approval to operate international flights, with plans to launch services to Mexico, Central America, the Caribbean, and possibly even Ireland and the British Isles. While the possibility of flights to Hawaii has been discussed, Neeleman confirmed that such plans are unlikely before 2026.
Despite its recent success, Breeze still faces hurdles. The airline’s on-time performance in 2024 stood at 69.6%, a figure it aims to improve through better turnaround processes and operational efficiency. Chief guest officer Fiona Kiesel noted that several initiatives have already been implemented to enhance punctuality.
Breeze has also lagged behind its competitor, Avelo Airlines, in reaching profitability. Avelo, which launched around the same time in 2021, had already posted profits in the first two quarters of 2024 before taking a loss in Q3. Analysts point out that Neeleman’s track record of founding successful airlines, including JetBlue, gives Breeze a solid foundation. However, financial sustainability will depend on maintaining profitability and ensuring continuous access to capital.
Breeze Airways had $110.7 million in cash and short-term investments at the end of Q3 2024. Since then, the airline has strengthened its cash position, which Neeleman describes as a sign of long-term stability.
With its first profitable quarter in the books, Breeze Airways has demonstrated its potential to succeed in the competitive airline industry. The company’s strategy of focusing on underserved routes, offering premium seating options, and stabilizing its network appears to be paying off. However, continued financial discipline, improved operational efficiency, and successful international expansion will be key factors in sustaining profitability beyond 2025.
As Breeze continues to navigate the evolving aviation landscape, the coming year will be crucial in determining whether the airline can maintain its upward trajectory or face renewed challenges in its quest for long-term success.
