Startup Breeze Airlines Goes International as Budget Carriers Compete on Passenger Perks

There’s new competition on the tarmac, with five-year-old startup Breeze Airways getting permission to fly international routes. Breeze, which was started by JetBlue’s founder, said it’s the first sizable airline since Virgin America to get the global go-ahead.

Breeze is adding seven routes to start, which will connect tourist hotspots like Cancun and Punta Cana with smaller US hubs, including Charleston, South Carolina, and Providence, Rhode Island. 

As budget airlines including Spirit and Frontier struggle, carriers like Breeze are trying to cater to a customer who doesn’t need a hot towel and unlimited cocktails but still wants a step above un-reclinable seats and paying extra for water. 

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People struggling with their budgets aren’t trading down for travel, Bloomberg reports — they’re just not flying anymore. Higher-income fliers, meanwhile, are opting for cheaper seats with fewer frills, but not a totally bare-bones experience. 

Breeze and its rivals are after this flier: 

• Breeze offers four tiers of tickets and said that a double-digit percentage of passengers upgrade their experience (roomier seats, bigger baggage allowances) on their second time in the skies. The five-year-old airline notched its first quarterly operating profit last year. Fun fact: Founder David Neeleman said his daughter-in-law’s social account, Ballerina Farm, used to be more profitable than Breeze. 
• Budget carriers that have struggled with empty seats in recent years are using a similar playbook to Breeze’s to regain altitude. Spirit, which filed for its second bankruptcy last month and has lost money every year since 2019, has added perks like two free checked bags for credit card holders and assigned seat upgrades. Frontier, whose revenue fell nearly 5% last quarter, plans to introduce first-class-style seats this year. 

Unfriendly Skies: There’s more competition than ever to cater to slightly spendier customers, with not just budget carriers but also major airlines offering a wider selection of seating options and upgrades. And last year, Delta and United commanded three-quarters of the airline industry’s US profits. Another significant aspect of Breeze’s strategy is targeting underserved locations and connecting those cities with major tourism destinations. Breeze’s founder said 86% of its routes have no competition, while 90% of Spirit’s routes overlap with those of other airlines.