Breeze Airways' Big Break: A ULCC Finally Profits

In this episode of the Airline Weekly Lounge, hosts Jay Shabat and Meghna Maharishi analyze the financial performance and strategic direction of Breeze Airways and American Airlines.

American, despite improving its operating margin to 8% in Q4 2024, continues to lag behind United and Delta. Meanwhile, Breeze reported its first profitable quarter, leveraging a premium product strategy and expansion into underserved markets.

The discussion highlights American’s struggles to compete globally and Breeze’s progress toward sustainability in the low-cost space. With key insights on fleet choices, network expansion, and industry trends, the pair offer a compelling look into the evolving U.S. airline landscape.

This episode was recorded before Wednesday's tragic events in Washington D.C. The entire Airline Weekly team sends their deepest condolences to those affected.

This episode is presented by Riyadh Air.

Listen to This Podcast

Apple Podcasts | Spotify | YouTube | RSS

Takeaways

1. American Airlines' Q4 2024 operating margin improved to 8%, but it still trails Delta (12%) and United (11%).
2. American's transatlantic capacity has shrunk by 5% since 2019, while competitors United and Delta expanded aggressively in this market.
3. Fleet challenges, including retired widebody aircraft and delayed Boeing 787 deliveries, have hurt American’s international growth.
4. American remains heavily domestic-focused, relying on regional jets, whereas United is investing in larger aircraft for efficiency.
5. Breeze Airways, founded in 2021, has reported its first profitable quarter, signaling potential stability in the ultra-low-cost carrier market.
6. Breeze differentiates itself with premium seating options and underserved market routes, positioning it ahead of competitors like Spirit and Frontier in customer experience.
7. Charleston is Breeze’s busiest airport, while Florida remains central to its network strategy, highlighting its focus on leisure travel.