Is It Worth Investing in Breeze Airways Stock? Here What You Should Know

Since the start of 2022, equities markets have remained quite unstable, primarily due to macroeconomic factors such as the outbreak of a new variant of coronavirus, the recent war between Ukraine and Russia, and immense fears over escalating interest rates.

Having said that, the prospect of making money will never fail to keep the public from the market, despite knowing the risks. 

On March 8, 2022, several investors were reportedly looking to invest in stocks of a relatively new airline company, Breeze Airways, after it announced some massive development, but in vain. You cannot invest in Breeze Airways stock shares and will not find the company trading on any of the public stock exchanges or available for investment as the company still hasn’t filed for an initial public offering (IPO). 

What is Breeze Airways?

Breeze Airways is one of the most recently emerged privately owned airline companies that focus on serving the smaller markets around the United States that are mostly ignored by the larger airline companies.

David Neelman is the founder and CEO of Breeze Airways, and the privately-owned company is still under his control. David Neelman has made quite a career commencing some of the most successful airlines.

His former experience involves co-founding other renowned airlines like JetBlue, Morris Air, Azul Linhas Aereas, and WestJet. Booking flights with Breeze Airways is super easy, convenient, and user-friendly.

All customers need to do is create a guest account to carry out the transaction. Once you have made your guest account, you can simply choose your destination, seat assignments, type of fare, flight date, and accompanying travel bags.

At Breeze Airways, you can choose from two different fare types, each accompanied by its own distinct perks. The two different types of fares you can choose from are Nice and Nicer.

Since some of the most significant American airline companies focus on massive areas, a substantial chunk of the market is still untapped. Breeze Airways provides its services to 18 states. Some of these include:

  • Palm Beach, Florida
  • Charleston, South Carolina
  • Tampa Bay, Florida
  • Islip/New York, NY
  • Hartford, Connecticut,
  • Norfolk, Virginia,
  • Louisville, Kentucky

●       A Brief History of Breeze Airways

Breeze Airways originated its headquarters in the February of 2020 in Cottonwood Heights, Utah. It received its initial Embraer 195 in December 2020 and its first E190 in February 2021.

See also  Preferred Stockholders and Cumulative Preferred Stock (Explained)

The company officially started selling its fares on May 21, 2021, and was all set for its first scheduled flight on May 27, 2021.

A Series B round of funding enabled Breeze Airways to generate almost $200 million in August. After two months, the company got its first Airbus A220-300. 

●      Perks for the Breeze Airways Consumers

Being a relatively new airline company, Breeze Airways is constantly working on revolutionizing its flying experience once it is in the air. Besides the enhanced beverage and snack options available, the amenities of streaming free television shows and movies are soon going to be available on the flight. 

Furthermore, the thing that makes Breeze Airways stand out even more amongst its rivals is its take on connecting flights. Breeze Airways only caters direct flights, indicating that you won’t need to suffer through long layovers or worry about catching a connecting flight.

Your flight can be changed or even canceled up to 15 minutes before the time of departure, with no extra charges. If you have booked a flight at least a week before and canceled within 24 hours of booking, the entire fare will be refunded.

The other reservations will be credited as BreezePoints, which are travel credits based on a specific percentage of the seat and bag expenses, type of fare, and base fare. These points can be used for up to 24 months, starting from the date it was issued.

Why Is Breeze Airways Gaining Traction?

The Utah-based airline company has significantly gained traction over all this time, especially after it made an announcement of its expansion plans in the U.S and aimed to double its network to 77 routes.

As mentioned before, Breeze Airways was primarily founded to meet the growing demand between cities which were not being served by the other more significant airline carriers. As per the company statement, Breeze Airways prearranged 80 Airbus A220-300 aircraft.

The airplanes are projected to be delivered in a span of six years, one each month. Furthermore, the airline company will also make additions of more Embraer 190 and 195 planes to its fleet. The one-way coast to coast tickets begin from $99.

The company will commence operating on the west side of the United States, from Los Angeles, San Francisco, Las Vegas, and San Bernardino. Breeze Airways also expects to add more cities from the south-eastern and eastern parts of the United States.

See also  Participating Preferred Stock: Definition, Feature, And How Does It Work?

Some of the cities to be added are Fort Myers, Nashville, Jacksonville, and Savannah. With the world slowly and gradually recovering from the global crisis of the coronavirus pandemic, the travel industry is also expected to bounce back into motion.

Moreover, ever since Breeze Airways has announced its plan to make expansions, it seems that several potential investors have been attracted and have hopes of investing and getting higher returns.

But is Breeze Airways stock worth investing in? Moreover, is the company even open to selling its shares of stock to the public? Let’s find out. 

What is the Breeze Airways Stock IPO?

Since Breeze Airways is a privately owned airline company, it is not possible for the public to purchase its shares of stocks.

Many other stakeholders in the company consist of venture capital companies who make investments in the airline’s development and growth in exchange for an unstipulated stake in the firm’s future profits.

The shares of Breeze Airways stock cannot be found on any of the public stock exchanges and are unavailable for trading and investment as the company has still not filed for an IPO. More so, there is little indication for Breeze Airways to go public any time soon. 

The Estimated Value of Breeze Airways Stock

As the company is currently not listed as a public trading company, there is no determined price to report on how much one share of Breeze Airways stock would cost.

One of the most accurate ways to determine an initial public offering is to compare it against the industry’s other airline companies.

Using the opening IPO prices of companies that specialize in this particular sector, you can get a range of what to expect if Breeze Airways ever decides to go public anytime soon.

Southwest Airlines

  • The opening price of the stock was $11.00.
  • The former 52-week high price was $64.75.

Allegiant

  • The opening price of the stock was $18.00.
  • The former 52-week high price was $271.29.

Delta Air Lines

  • The opening price of the stock was $20.00.
  • The former 52-week high price was $52.28.
See also  What are Equity Shares? Types, Advantages, and More

American Airlines

  • The opening price of the stock was $25.00.
  • The former 52-week high price was $26.09.

United Airlines

  • The opening price of the stock was $14.00.
  • The former 52-week high price was $63.70.

Frontier

  • The opening price of the stock was $19.00.
  • The former 52-week high price was $22.70.

Jetblue Airways

  • The opening price of the stock was $25.00.
  • The former 52-week high price was $21.96.

Spirit Airlines

  • The opening price of the stock was $12.00.
  • The former 52-week high price was $40.77

With Breeze Airways mainly operating in untapped markets and direct flights provided to customers across the entire United States, you can infer that if the company ever makes the decision to go public, its IPO price would fall somewhere within the range of the above-mentioned opening prices.

Thus, it would be a safe bet to assume that the IPO opening price for Breeze Airways could range somewhere from $11.00 – $25.00.

On the contrary, if we examine the former 52-week highs of other airlines operating in the same sector, the possible growth of one share of Breeze Airways stock can reach between $22.00 – $271.00.

Bottom Line: Is Breeze Airways Stock Worth Investing In?

Unfortunately, it is not possible to buy Breeze Airways stocks or stocks from Breeze Aviation Group, Inc., its parent company.

However, given the airline company is constantly expanding its flights in more and more untapped areas of the United States, it might make an announcement to go public sooner or later.

It is an excellent question to ask as the developing airline company can be a significantly lucrative investment center, specifically if you take the following points into consideration:

  • Direct flights
  • Affordable ticket prices
  • Enhanced in-flight services
  • Ability to change and cancel flights 15 minutes before boarding the plane
  • User-friendly app for flight bookings
  • BreezePoints rewards program
  • A dedicated CEO who co-founded four additional airlines throughout his career.

In August 2021, the parent company of Breeze Airways: Breeze Aviation Group Inc., apparently raised $200 million in a financing round that was directed by Knighthead Capital and BlackRock.

To this date, Breeze Airways is deemed to have raised almost $287.3 million via various funding rounds.