sailingfun

If Breeze needs pilots they will pay market rates and have decent work rules. The problem is they currently are a financial train wreck. Avelo is right on the cusp of turning a profit with a low cash burn. Breeze needs to double ticket prices to break even. The question is can the Kneelman effect con investors into another round of equity investment.

“The climb out has not been without bumps, however. Airline industry news website Enilria.com pored over Breeze’s Transportation Department filings, and its report did not paint a pretty financial picture. Enilria says the filings show a negative 110% margin with a $37.9 million loss on $34.5 million revenues and $72.3 million in expenses in the third quarter of 2022.

“The revenue is staggeringly low,” Enilria wrties. “It cost Breeze $2.10 in expenses for every $1 of revenue. They have an Everest-sized mountain to climb by comparison, based on their own financial reporting.” Enilria also notes that “Breeze’s fuel bill alone has used up 60% of all their revenue in [the first three quarters of] 2022.”