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Breeze, a low-cost carrier founded in 2021, is aiming to build a loyal customer base by introducing a co-branded credit card.
Breeze Airways has revealed plans to launch a co-branded credit card and revamp its loyalty program, marking a significant milestone for the relatively new low-cost carrier.
The newly launched co-branded credit card, in collaboration with Barclays, enables customers to earn 10 times the points for various expenses such as airfare, checked baggage, premium seating, onboard snacks, and beverages. Additional perks include complimentary onboard Wi-Fi and the ability to accumulate points through everyday spending at grocery stores and restaurants.
The credit card comes with an $89 annual fee and offers 50,000 BreezePoints to customers who spend $2,000 within the first 90 days of account opening. Cardholders will also enjoy priority boarding on Breeze flights.
The carrier’s loyalty program will now be referred to as “Breezy Rewards” instead of “BreezePoints.”
Established in 2021, Breeze operates similarly to Allegiant by connecting underserved areas to popular leisure destinations.
A Big Step for Breeze
Lukas Johnson, Breeze’s chief commercial officer, expressed excitement about the launch of the co-branded credit card as part of the loyalty program upgrade.
According to Johnson, partner credit cards are a critical component of loyalty programs as they provide opportunities for customers to earn points through daily activities. Angela Vargo, Breeze’s vice president of marketing, noted the significance of the credit card in allowing customers to earn rewards for trips to more destinations that Breeze serves.
Though low-cost carriers like Breeze typically attract budget-conscious travelers rather than frequent flyers, Johnson believes the carrier will succeed in attracting customers to sign up for the credit card.
Breeze’s Financial State and a Potential IPO?
As a private company, Breeze’s financials are not publicly disclosed, making it challenging to assess the profitability of its business model. Reports suggest that Breeze has used up a significant portion of its startup funding and is operating at a loss. However, CEO David Neeleman remains optimistic about the carrier’s profitability in 2024.
Regarding the launch of the credit card, CFO Trent Porter explained that the financial challenges reported were due to operational scaling costs and that the carrier had sufficient resources to cover these losses.
While one of Breeze’s main competitors, Avelo, also aims to achieve profitability by 2025 and is considering an IPO, Breeze has not set an immediate timeline for going public. Porter mentioned that an IPO could be on the horizon in 2025 or 2026, but it is not a current focus for the airline.
