BlackRock Joins $200 Million in Funding for Startup Breeze Air

BlackRock Inc. and Knighthead Capital Management are investing in a $200 million second round of capital to support the expansion of startup low-cost carrier Breeze Airways.

The funding also includes additional investments by Peterson Partners Inc. and Sandlot Partners, which helped provide an initial $100 million in capital that backed the May start of flights by the Salt Lake City-based carrier, Breeze Aviation Group Inc. said Wednesday.

Breeze, which offers nonstop flights from relatively small, secondary airports, primarily to leisure destinations, has taken advantage of a rebound in domestic travel as consumers switched gears after a year of staying close ...