Avelo Airlines and Breeze Airways are two of the newest airlines in the United States, and they have similar business models — both operate point-to-point routes in underserved markets.
The major difference is their approach and passenger experience — Avelo flies used 737s with a pretty basic product, while Breeze flies new A220s with Wi-Fi, premium seating, etc. Along those lines, there’s an interesting development on the West Coast…
Breeze announces big West Coast expansion
A few day ago, Avelo announced it will completely discontinue West Coast flights by the end of 2025, including terminating operations in Burbank, which has been a focus city for the airline. Now, just days later, Breeze has announced a significant West Coast expansion, including launching flights to Burbank for the first time.
For all practical purposes, Breeze is jumping into the markets that Avelo is pulling out of. Interestingly, this service is only launching in March 2026, which is a mighty long lead time for a leisure oriented domestic airline to add new service. With this expansion, Breeze will serve 300 routes across 76 cities, in 34 states.
Breeze is entering a total of five new markets with this expansion, all of which have historically been served by Avelo, including:
- Arcata, California (ACV)
- Burbank, California (BUR)
- Eugene, Oregon (EUG)
- Pasco/Tri-Cities, Washington (PSC)
- Remond, Oregon (RDM)
Here’s how Breeze founder David Neeleman describes this development:
“With an expanded West Coast presence that connects travelers to our broader nationwide network, Breeze’s service will bring even more options and convenience to these underserved communities. Our continued growth is evidence that our unique form of air travel that combines affordability and ease with high-value options like premium seating and inflight WiFi is not only working, but highly desired by today’s travelers.”
Will Breeze have more West Coast luck than Avelo?
Avelo and Breeze are both not publicly traded, so our insights into their financials are limited, beyond what’s disclosed in regulatory filings. It’s interesting to see how the two airlines have evolved:
- Avelo seemingly started off with better financial performance, while Breeze seems to have improved in recent times (again, there’s not that much transparency here, but I think anyone who has looked at their filings would agree)
- Avelo started on the West Coast while Breeze started on the East Coast, but now Avelo is focused on the East Coast, and Breeze is increasingly focusing on the West Coast
For the most part, Avelo and Breeze are competing for the same type of customer, and in general, you’d think their performance in given markets would be comparable:
- Avelo has better per-seat operating costs, given that it flies old 737s that probably cost very little to acquire, and the jets are higher capacity
- Breeze is probably able to generate a bit more revenue per passenger, given that the carrier has some premium seating and Wi-Fi, and also given the lower passenger capacity, which makes it easier to fill planes
Since the companies aren’t publicly traded, it’s hard to know how all those things balance out. Though my assumption would be that if a market wasn’t working well for Avelo, it’s probably also not going to work great for Breeze.
The thing is, the decision to operate a route isn’t about whether it’s profitable in absolute terms, but instead, it’s about whether it’s more profitable than the next best option. As we know, airlines are struggling right now with domestic flying (in terms of demand and yields).
So I’m not sure if Breeze actually sees some potential here that Avelo didn’t, or if the airline just figures that it’s growing, so it might as well put some more effort into the West Coast, building on what Avelo has already done.
Also keep in mind that Avelo is now in the business of operating deportation flights. I mention that because it increases the opportunity cost for Avelo’s scheduled operations. Breeze isn’t doing any deportation flying (yet?), so the airline has to be more focused on how it deploys capacity.
Bottom line
Breeze Airways is expanding on the West Coast, an announcement that comes days after Avelo Airlines revealed it would end all West Coast flying. Most significant is that Breeze is expanding to Burbank, which was a focus city for Avelo since launch. The dynamics here are interesting, and I’m curious if Breeze is able to find success…
What do you make of Breeze’s West Coast expansion?
