Breeze Aviation Group, Inc., d/b/a Breeze Airways, a new low-cost carrier with a high technology customer focus, today announced that it has closed a $200 million Series B funding round led by funds and accounts managed by BlackRock, and Knighthead Capital Management, LLC. The funding round also includes additional investments by the airline’s existing investors, including Peterson Partners and Sandlot Partners. Breeze initiated its first flights on May 27, 2021, and has quickly grown its route network to 16 U.S. cities and 39 routes.
With the additional $200 million from the Series B funding, Breeze Airways has raised more than $300 million in startup capital, more than any other U.S. start-up within three months of operations launch. The supplemental funds will be used to fuel the company’s continued expansion.
“Welcoming funds and accounts managed by BlackRock and Knighthead and additional funding from our existing investors further validates our business strategy to offer new nonstop flights at reduced fares between smaller cities where the Guest’s only choice today is a lengthy connecting flight through a large hub airport,” said David Neeleman, CEO and Chairman of the Board. “We look forward to working with our new investors, humbled to be considered the best-funded startup in U.S. aviation history, and are excited about the growth that it will fuel.”
“Breeze’s use of right-sized and efficient aircraft to offer new non-stop service between smaller U.S. cities constitutes a true competitive advantage, and delivers a better experience for travelers whose only current options are connecting flights,” said Adam Zirkin, Partner at Knighthead Capital Management, LLC. “Moreover, the airline’s unique use of technology allows for better service at lower cost, eliminating the missed connections, delays, and long customer service hold times that are such an unfortunate part of air travel as we know it. We’re excited to partner with David and the rest of the Breeze team, as they build and provide this new and improved travel experience.”
Based in Salt Lake City, Breeze offers point-to-point flights from smaller, secondary airports, bypassing hubs for shorter travel times. Breeze currently operates 13 single-class Embraer aircraft, flying routes with an average flight length under two hours.
Breeze will start taking delivery of 60 new Airbus A220 aircraft in October, which will be delivered at a rate of about one per month for the next five years. The focus of the Breeze A220 aircraft will be on routes longer than two hours’ flight time.
Breeze uses technology to deliver a simplified travel experience. Leveraging the company’s technology platform, Breeze has created a simplified purchasing experience that offers the traveler a streamlined process that can be completed quickly and efficiently through an app.
When the airline announced its first 39 routes, 95 percent of them did not have any existing nonstop, year-round service. Many U.S. origin-destination travelers have no available nonstop flights today and are forced to take inconvenient, and often expensive, connecting flights through hub airports. Breeze solves this problem with nonstop flights that by-pass hubs, getting them where they need to go in half the time for about half the price.