leftapproved

Dude, what airline isn't in financial trouble during its first few years? They all lose money. How do you know we have burned through all of our cash? You don't. Spending unwisely? This airline pinches pennies like you wouldn't believe. Stop growing?? That's the only way to stop the bleeding!! WE NEED SCALE! The management team knows EXACTLY how to make/save money. Relax.

That being said, you are right. Culture is on a thin rope right now. The Allegiant Mafia will continue to run this airline until it becomes Allegiant flying blue aircraft.

The stock.... I started getting a bit worried when Neeleman claimed that it would immediately vest in the event of an acquisition, then proceeded to backtrack his response as not true and claimed he would have that changed during an upcoming board meeting.... Did that ever happen??

Oh and the maintenance issues.... nah. The 220s are just fine. Do they have their quirks? Absolutely. It's like the same 5 things that rotate through all the aircraft.

bluespoon

So are you finally leaving? Probably for the best.

bluespoon

And the company has only been operating for just over 2 years, the A220 even less. That is nothing yet in the grand scheme of things. It’s not even close yet to what they’re envisioning for Breeze but it’s already been christened Allegiant 2.0 by some. We didn’t expect champagne to be flowing with velvet ropes parting when we joined, I think others had other ideas obviously. Its a startup, its what you make of it, plenty are working hard toward making it better.

sailingfun

They don’t all lose money the first few years. In fact many like Jet Blue are profitable almost the day they start up because costs are extremely low with staff all on first year pay. The first hump often seems to be around year five as costs escalate. There has never been a better time to be in the airline business with fantastic yields available and a capacity shortage. The issue at Breeze is not that they are losing money. It’s the magnitude of the loses which are virtually unprecedented.

“Breeze showed the same margin trend as Avelo in Q1 2023, worsening from Q4 2022. Their results, however, are far worse than Avelo. Breeze spent $1.77 for each $1 of revenue in Q1 2023, while Avelo spent $1.17. Both are losses, but Breeze's numbers are far worse. Breeze appears to have lost $174 million in the last 5 quarters. We don't have one of the quarters for Avelo, but it appears to be around half as much.

BREEZE vs AVELO

As of Q1 the airlines are more or less the same size in revenue, but with Breeze spending nearly double in expenses. It's not much of a fight based on their reported numbers. Avelo is winning the race to profitability hands down, although both need their margin trend to turn back the right direction in Q2 2023.”

Andy

Avelo's got better city pairs. Breeze's city pairs remind me of Skybus. For those that don't remember Skybus out of Columbus, there's google.
Now compare CASM. Avelo's flying 737s with tight seats vs Breeze. Avelo's got a lower CASM.

More seats per aircraft will help Breeze, but they really need to find a decent route structure.

Breeze's managers definitely aren't the best in the business.

AlexisTX

Attrition was discussed on the Pilot call today, apparently Many are leaving.

bluespoon

Ok so what? How come you’re not on the Avelo thread spouting their demise every chance you get if they’re not profitable either? Just over here at Breeze. You keep bringing up JetBlue which was a totally different time compared to starting up an airline now, how much was fuel back then? Obviously Avelo has gone a different route with lower costs using old 737s. Everyone’s losing money now with the price of oil going up.

bonvoyage

only the C suites know the truth about what’s going on. But I very recently talked with David. Of course what he tells pilots at his company should be taken with a grain of salt, but that grain of salt is much larger than what a wannabe Aviation journalist writes online.

the financials are fine. The ONLY reason the profit margin has bounced from Q4 to Q1 is the large spike in fuel costs. We were going to get 6 used A220s, it sounds like interest rates nearly doubled, which must’ve made that plan not make sense for the company. Things are running pretty much on track for where they should be, 28 months in. Starting next year, we will be aligning the company to the single fleet A220s. That will cut costs down. And the IPO target is Q2 2024

leftapproved

Many FO's are leaving. Normal. We're fat on FO's anyway.

sailingfun

All 4 majors are projected to be solidly profitable this quarter. Where did you hear everyone is losing money. Avelo is on track to post a profit and is performing fine at this stage. Breeze is losing money at a very high rate. The next two quarters will need to show a major turn around to secure additional funding.