CEOs of low-cost carriers Breeze and Avelo report that they both expect to turn an annual profit in 2024. The airlines were launched in 2021 at a time when the demand for air travel was down more than 30% from prior to the COVID pandemic.
The carriers have focused on linking smaller cities with fewer travel options, such as flying to Los Angeles’ Hollywood Burbank airport instead of Los Angeles International. Avelo Airlines CEO Andrew Levy said he expected the carrier to turn a profit earlier, but inflation and other economic challenges slowed the progress.
Breeze Airlines flew more than 2.8 million passengers last year, while Avelo flew 2.3 million. Southwest, the largest domestic airline, flew more than 137 million passengers in 2023. Together, Southwest, Delta, American and United control 75% of the U.S. market.
“When you have Goliaths, and you’re just David, it’s really hard,” Levy said.
