just pointing out that there is an AD for the cockpit design that they are not going to fix. I didn’t write the AD, the FAA did. Both David P and N think the A220 can do no wrong. Well, it’s just another airplane.

 

Go ride the jumpseat in one then see what you have to say about it compared to the uncomfortable steampunk cockpit that you and I work it.

 

Tgere is no need to change the cockpit and the switch placement in question is the same as many other aircraft. The procedural solution is just fine. Don't try and reselect auto throttles during takeoff. You won't hit the autopilot switch by mistake if you do that.

 

So Breeze lost $166 MIL on $383 MIL in revenue in 2023. Yeah, I get that fuel was high and fares were somewhat low, but considering we already "spend smartly", how does Breeze overcome the loss? It doesn't seem possible to "cost cut" our way out of it. We scaled ops to almost double last year, yet the loss actually grew from 2022, so scaling won't actually fix the immediate issue. It seems the only way Breeze can overcome the loss is to increase revenue through market maturation. I would assume the credit card goes a long way towards that, but raising fares as an ULCC, especailly one that stimulates traffic, is almost.....impossible? If more money will be raised, I'm not so sure DN is going to have much control left....

Genuinely curious to hear opinions on how Breeze gets out of this hole.

 

Fares were not low in 2023. In fact they were some of the highest fares in airline history. They are dropping in 2024 but it's still a excellent revenue environment for airlines.

 

You’re talking about 22 and 23. It’s the year 2024. Not sure if you know they said they’ve been profitable at least March and April. So things are trending good… But it’s definitely tough time for the airlines at least LCC

 

So tell me what changed in 2024? That's my question. Costs cannot be cut any more. Is Breeze commanding a higher fare? Is fuel dropping? March/April were profitable from a charter standpoint. It accounted for $43 MIL alone in 2023. March/April happen to be the highest charter months.

 

Then why does management constantly tell us there was an overcapacity (softening of fares)? If this were the case, Breeze fares would not be able to get stronger, leading to weak revenue increases.

 

Profitability can be measured on many levels. Breeze has made no official announcement they are profitable and they continue to report only required government financials. If they are truly profitable they will be screaming it on every platform available. A operating profit is quite different than a actual profit.
Airlines had a very good year in 2023.
Following a better-than-expected performance, total airline revenue in 2023 is estimated to have recovered
to around 107% of the pre-Covid level. The exceptional year-on-year (YoY) growth is driven by strong
passenger revenue but is partly offset by lower air cargo revenue. In 2024, passenger and cargo revenue is
expected to approach the pre-pandemic split with shares of 88% and 12% respectively.
▪ Passenger revenues are projected to reach USD 642 billion in 2023, a remarkable increase of 47% from
2022. The primary driver behind this growth has been passenger demand, which in revenue passenger
kilometers is expected to reach 38% YoY. Asia-Pacific is the region with the strongest demand growth as it
accounts for more than half of the total global increase. Europe and North America follow in second and
third place. Passenger revenue growth is expected to slow in 2024 to 12%, but from the much higher 2023
base.

 

If you look at the revenue vs expenses from 2022 to 2023, the margins are way better now. Q2 of 2022, it was 28mil in revenue and 64mil in expenses. Q4 of 2023 it was 120mil in revenue and 152mil in expenses. Just based on the trend and economy of scale, we should be getting close to becoming fully profitable end of this year.