US budget carrier Breeze Airways sets sights on 2027 IPO

RIO DE JANEIRO, June 6 (Reuters) – U.S. low-cost domestic carrier Breeze ​Airways is targeting an initial public offering in 2027, CEO David ‌Neeleman said on Saturday, noting the plan depends on market conditions.

The carrier considered an IPO sooner but decided to wait due to market conditions, he added during an ​interview with Reuters on the sidelines of the International Air Transport ​Association’s annual summit in Rio de Janeiro.

“To have an IPO, ⁠the market has to cooperate, the industry has to cooperate,” he said.

The ​carrier, which launched in 2021, has been steadily building toward financial stability, Neeleman ​said, adding that the company does not need to raise capital now, giving it the luxury of waiting for the right equity market environment before making its public debut.

Neeleman, ​who previously founded JetBlue and Azul, has built Breeze around connecting underserved ​mid-sized American cities with affordable, point-to-point service.

Breeze is also pushing into international markets. The ‌airline has ⁠announced service to Mexico, Costa Rica, and the Dominican Republic, with Jamaica initially on the list before being pulled back due to hurricane damage.

“International is an important part of our business,” Neeleman said.

The strategy is built around ​a specific scheduling ​model, flying international ⁠routes on Saturdays and Wednesdays, which tend to be off-peak days domestically, he said.

Neeleman, who has worked in the ​airline industry through some of its most turbulent periods, including ​the ⁠September 11, 2001, attacks in the U.S. and the pandemic, had a cautiously optimistic tone when asked about the state of the aviation business.

“It’s not as ⁠bad as ​the pandemic, obviously not even close,” he ​said, referring to war and spiking fuel prices. “I’m hoping it’ll get resolved soon.”