Summary:
Breeze and Avelo are redefining air travel with low-cost models targeting smaller markets.
Low-cost carriers gained 13% global market share post-pandemic, while legacy airlines struggle.
Breeze operates Airbus A220 while Avelo utilizes Boeing 737 family jets.
These airlines are successfully expanding routes to neglected airports, boosting regional connectivity.
Tweed-New Haven Airport saw a rise from 50,000 to 500,000 enplanements thanks to these new carriers.
The Rise of Low-Cost Carriers
Start-up airlines like Breeze and Avelo have emerged as low-cost or ultra-low-cost carriers, capitalizing on the growing trend towards affordable travel. In a market where legacy airlines dominate, these newcomers have found their niche, making up a significant share of the airline capacity in the U.S.
Photo: Robin Guess | Shutterstock
Since the pandemic, low-cost carriers have increased their market share by approximately 13%, while legacy carriers have struggled to recover fully. According to Forbes, the low-cost model thrives on simplicity, allowing these airlines to minimize costs by avoiding complex operations.
Meeting the Needs of Travelers
Passengers often have mixed feelings about low-cost carriers. While they appreciate the affordable fares, they sometimes express frustration over service quality and additional fees. Breeze and Avelo focus on leisure travelers and those visiting family. Breeze operates the Airbus A220 while Avelo utilizes the Boeing 737 family, offering a no-frills experience with some added perks like power outlets and different seating classes.
Photo: Ceri Breeze | Shutterstock
Breeze has a fleet of 35 Airbus A220-300s and 13 Embraer 190/195s, while Avelo maintains 20 Boeing 737-700s and 737-800s. Both airlines have expanded their reach significantly, with Avelo flying from about 54 airports and Breeze from 66 airports.
Targeting Overlooked Markets
These start-up airlines are targeting airports often neglected by larger carriers, creating a new paradigm in the airline industry. They focus on smaller or medium-sized destinations, avoiding the traditional hub-and-spoke model. For instance, Tweed-New Haven Airport, previously serviced by a limited number of flights, now enjoys a boost in connectivity thanks to Breeze and Avelo.
Photo: West Virginia International Yeager Airport - CRW
The New York Times highlighted how these airlines have transformed Tweed-New Haven Airport, increasing daily flights from just a handful to around 30. The airport is now expected to see nearly 500,000 enplanements in 2024, a significant jump from just 50,000 in 2019.
Future Growth and Expansion
Looking ahead, Breeze plans to expand its destinations to include cities like Charleston and Jacksonville, while Avelo is set to launch new flights from Tweed to Dallas/Fort Worth. Notably, Tweed is a critical hub for Avelo, accounting for one in five of its scheduled flights.
Photo: Avelo Airlines | Bruce Snyder
Both Breeze and Avelo demonstrate that success in the airline industry is possible by focusing on underserved markets and offering affordable travel options without the complexities of larger carriers.
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