Breeze Airways makes its first suggestion on international routes, considering adding first class seats

Could Frontier Airlines and Spirit Airlines finally merge?

“That’s my prediction,” the CEO of a competing low-cost airline told TPG.

Discussions have been going on for years about the possibility of the nation’s two leading low-cost carriers joining forces.

Spirit and Borders exploring a merger in 2022but Spirit withdraw from negotiations instead pursued marriage with JetBlue – a final arrangement blocked in court by the Biden administration.

Then, late last year, the Wall Street Journal reported that the airlines have resumed acquisition talks. However, according to reports, this deal broken days before the Holy Spirit announced it had filed for Chapter 11 bankruptcy protection.

Spirit’s financial turmoil – fueled by growing debt, falling revenues and a myriad of other factors – comes amid a period of tumultuous performance for low-cost airlines in general.

The landscape is more difficult for low-cost airlines

In recent years, the lower-cost segment of the U.S. airline industry has lost ground to larger “legacy” carriers, which boast long-haul international route scores of Travelers are hungry right now. Not to mention, larger airlines offer amenities like premium cabins, lie-flat seats and highly lucrative frequent flyer and credit card programs that have played a huge role in profits since modern times. coronavirus epidemic.

Some industry insiders — United Airlines CEO Scott Kirby, the most vocal — have predict collapse of some low-cost airlines, especially Frontier and Spirit. These carriers have long been known for offering extremely low base fares but charging extra for most other in-flight services.

In a wide-ranging interview last month with TPG, low-cost airline executive David Neeleman, CEO of Breeze Airways, offered his own views.

“I think Spirit and Frontier will survive,” Neeleman said. “But I think it would be much easier if they merged. If they became one.”

When asked if he openly predicted a future merger between the two carriers, Neeleman did not hesitate to answer: “Yes,” he said.

Both airlines have repeatedly declined to comment on any lingering merger or acquisition talks. It’s also worth noting that the incoming Trump administration is expected to take a less stringent regulatory stance than the previous administration, perhaps encouraging another consolidation effort.

Low-cost airlines eye premium services

Regardless, Neeleman said he generally agreed with the blunt assessment United’s Kirby has given about the state of the U.S. airline industry — specifically about the Chicago-based carrier’s advantages compared to low-cost carriers (of which Breeze is one).

Repeatedly in 2024, Kirby asserted United’s “structural, permanent, and irreversible” advantage in the industry — along with Delta Air Lines’ advantage.

Now that the major carriers have virtually eliminated change fees and added their own basic, no-frills, low-cost economy fares, Kirby and others have asked why Travelers choose a low-cost airline if a full-service airline has similar fares. .

Other low-cost airline executives have dismissed predictions of industry collapse.

“It’s funny,” Frontier CEO Barry Biffle said sarcastically when addressing the claim in an interview with TPG last month.

But Neeleman offers a slightly different perspective.

“Scott [Kirby] found a way to get people on United the same thing they were doing on Spirit, knowing that no one would choose to fly Spirit if they could come and fly United,” Neeleman said.

“If you board a United Airlines flight [Boeing 737] MAX 9 [jet] today, it’s perfectly configured for what people want,” Neeleman continued, noting that United’s offerings range from first class to extra legroom to a naked option.

It’s a more diverse menu of features that travelers can also find on Delta and American Airlines. Such diversity is also being implemented at a rapidly growing list of low-cost airlines: Frontier announced new first-class-style seats in December, Southwest has rows of extra-legroom seats planning for 2026 and JetBlue plans to add more domestic first class seats. cabin. (Neeleman is perhaps best known in the US for founding JetBlue in 2000).

The wind sees an opportunity

These days, Neeleman thinks travelers’ changing preferences — specifically their desire for roomy rows, premium seating and more overall options — bode well for the new startup. Yours, Breeze. The airline launched in 2021 at the height of the coronavirus pandemic.

Since its launch, the Utah-based airline has offered free bags, Wi-Fi service and first-class recliners to passengers who choose its “Best” fare. These fares are an alternative to classic low-cost airline (“Nice”) discount fares for bargain shoppers.

“When I played against those guys, we did really well,” Neeleman said of Spirit and Frontier. Because people want to fly the Breeze.”

Of course, his airline may face more competition in the coming years, as travelers increasingly find space options on more and more low-cost carriers’ planes. Neeleman said this is the main reason why Breeze is “really seriously considering” increasing the number of “Best” seats on its Airbus A220 aircraft.

“We started with 24 [first-class seats on board] and we went to 12, and I think we’re really seriously looking at going back to 16 because there’s so much demand,” he said, noting that the airline could reconfigure its aircraft I “overnight” to make those changes.

International flights are on the horizon

But what about international service?

The last time I spoke to Neeleman, about eight months ago, he teased one Upcoming international expansion tied to major long-term growth plans at Providence’s Rhode Island TF Green International Airport (PVD).

In fact, Breeze’s fellow startup airline Avelo — also launching in 2021 — hit it hard with new service to Mexico, Jamaica and the Dominican Republic from Hartford’s Bradley International Airport (BDL) and North Carolina’s Raleigh-Durham International Airport (RDU). BDL and RDU are the airports where the two emerging airlines have focused major attention.

Neeleman cited delays in Federal Aviation Administration approvals that would allow Breeze to fly its planes internationally. That process should wrap up by the end of March, he told TPG.

“And then we can go to Hawaii, which is like the North Atlantic – mainly just to the British Isles and Ireland. Places like that,” he said.

However, up first?

“Mexico, Dominican Republic, Jamaica, things like that,” he said.

Breeze currently offers 280 nonstop flights – and is uncompetitive on 86% of them, the carrier noted this month.

Its growth is expected to continue into 2025. According to data from aviation analytics firm Cirium, its seat count in the first half of this year will increase by about 49% year-on-year last.

Whether that focus is on international or domestic flights, or economy or premium cabins remains to be seen in the context of historical shifts in traveler preferences. Stay tuned.

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