Breeze Airways, a low-cost carrier that was founded in 2021, made a significant move by launching a co-branded credit card and re-branding its loyalty program. The credit card, in partnership with Barclays, offers customers the opportunity to earn 10 times the points for various purchases, including airfare, checked baggage, premium seating, and inflight snacks and beverages. Other perks include complimentary Wi-Fi on board and the ability to earn points through groceries and dining at restaurants. The credit card has an $89 annual fee and offers customers 50,000 BreezePoints when they spend $2,000 in the first 90 days of opening the account, along with priority boarding for Breeze flights.
The loyalty program, now called “Breezy Rewards”, is part of Breeze’s efforts to revamp its customer retention strategy. With Breeze’s business model focusing on flying customers from areas with limited commercial air service to popular leisure destinations, the airline aims to attract more loyalty from travelers. The airline believes that the partnership with Barclays for the credit card will help incentivize customers to choose Breeze over other options, especially in markets where Breeze is the only available choice. Despite traditionally catering to travelers looking for the lowest airfare, Breeze is optimistic about attracting enough sign-ups for the credit card.
As a private company, Breeze’s financials are not publicly available, leading to speculation about the carrier’s profitability. Reports suggest that Breeze has been operating at a significant loss, but CEO David Neeleman remains confident that the airline is on track to become profitable by 2024. Chief Financial Officer, Trent Porter, attributes the current financial situation to overhead costs associated with scaling operations, but believes that the addition of the credit card will help offset these losses. While competitors like Avelo are also aiming for profitability in the near future, Breeze is looking into the possibility of an IPO, potentially in 2025 or 2026.
The launch of the co-branded credit card and re-branded loyalty program represents a significant step for Breeze as it continues to establish itself in the low-cost carrier market. Executives at Breeze, including the Chief Commercial Officer Lukas Johnson and Vice President of Marketing Angela Vargo, are confident that the airline’s unique offerings and routes will attract a loyal customer base. By providing customers the opportunity to earn points not only through airfare but also through everyday purchases, Breeze aims to differentiate itself from competitors.
With a focus on serving underserved markets and leisure destinations, Breeze is positioning itself as a viable option for travelers in need of affordable airfare. By offering a co-branded credit card with attractive rewards and benefits, the airline hopes to enhance customer loyalty and engagement. While the financial state of the airline may be uncertain, Breeze remains optimistic about its future profitability and potential for an IPO in the coming years. Overall, the launch of the credit card and loyalty program reflects Breeze’s commitment to growth and innovation in the competitive aviation industry.
