BermudAir focuses on reliability, growth as it marks one year of flights

Startup BermudAir took to the skies a little over a year ago, promising to provide all-business class cabins and dark 'n' stormy cocktails on its two-or-so-hour flights between the U.S. and its namesake island.

As with most new airlines, things did not go as expected. Within a month of launch, the all-business-class flights were out due to a seat supplier who "hasn't delivered," founder and CEO Adam Scott said. (The suites still still not arrived.)

The dark 'n' stormy cocktails with Goslings Rum, however, remain.

"[The] first year was great," Scott said in an interview. "Pivoting from an all-business to dual-class had its challenges, but the team persevered through that."

BermudAir initially served three U.S. markets — Boston Logan International Airport (BOS), Fort Lauderdale-Hollywood International Airport (FLL) and New York's Westchester County Airport (HPN) — from its home at Bermuda's L.F. Wade International Airport (BDA). It has grown to serve seven gateways in the U.S. and Canada. Baltimore-Washington International Thurgood Marshall Airport (BWI) and Orlando International Airport (MCO) joined its map in March; Halifax Stanfield International Airport (YHZ) and Toronto Pearson International Airport (YYZ) joined in May.

And, for a new airline with just two Embraer E170 aircraft, operations were relatively reliable. BermudAir only canceled 19 flights, for a completion factor better than 99%, during its first 12 months of flying, data from aviation analytics company Cirium shows.

On BermudAir's flights from BWI — a market where the airport discloses the number of passengers carried by each airline in its monthly traffic reports — the airline filled an average of 79.8% of its seats from March through July, airport data shows.

Expansion and solid operations, however, were not enough for the startup to achieve a profit in its first year — admittedly, a rare feat for a new airline.

"It takes some time to get there," Scott said. He added that BermudAir was on "the road to profitability" without providing a timeline for when that may occur for the privately held airline.

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In the meantime, BermudAir is focused on maintaining reliable operations and managing growth. The airline's two planes will operate an average of 50 flights a week, or as many as eight a day, in October, according to Cirium Diio schedules.

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The airline hopes to acquire a third aircraft "as soon as possible," Scott said. That plane could be another E170 or a larger E190 or E195, he added, noting that the larger models would provide BermudAir with more capacity and improved performance. However, the third aircraft would be used as a spare to improve reliability and allow for the required maintenance of its existing fleet rather than for growth.

BermudAir is seeking a fourth aircraft, which could arrive by spring 2025. The aircraft would allow the airline to boost frequencies on existing routes or add new destinations, Scott said.

Where BermudAir could go with its fourth plane is to be determined. Scott would only say that it would be within the capabilities of the E-Jet, which is just about anywhere on the Eastern Seaboard of the U.S. and eastern Canada.

As for the business-class suites — or "pods," as Scott described them — BermudAir still plans to offer them on its planes just as part of a two-class product. The airline, however, does not have a timeline for when they could make their debut.

"We'd like to introduce the pods still at the front of the aircraft," Scott said. "There still is a very good market here."

"[But] rather than just being an exclusive airline for a few, we're actually an airline for the island now," he added, citing the plan to keep the dual-class onboard product.

BermudAir is also working on another passenger initiative: a loyalty program. While Scott did not provide many details, he said the airline wants to create something broader than itself and "unique to Bermuda." That could include local hotels and resorts and other amenities on the island.

"It's a critical, competitive point to have a robust and attractive [loyalty] program," he said.

Partnerships with other airlines — something Scott said there are "a lot of opportunities for" — could come with the launch of a loyalty program.

One thing BermudAir does not plan to do is adopt another airline's loyalty program as its own like South America's JetSmart recently did with American Airlines AAdvantage program.

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