OpenAirlines raises nearly €45m to accelerate the aviation industry’s ecological transition

Toulouse, 14^th of November 2024 – OpenAirlines, a world leading provider of eco-flying software solutions, announces a new milestone in its growth trajectory after raising nearly to 45 million euros from Eiffel Investment Group, leading the operation through its Eiffel Essentiel fund, with the backing of Mirova, a Natixis Investment Managers affiliate dedicated to sustainable investments. Both funds are leading the way in Europe’s energy transition.

These two leading players in the field of energy transition in Europe are committed to supporting the growth of OpenAirlines, previously backed by Alter Equity, in order to speed up the company’s vital contribution to the aviation industry’s decarbonisation drive.

This line-up will also be joined by the Caisse de Retraite du Personnel Navigant Professionnel de l’Aéronautique Civile (France’s pension fund for cabin crew in the civil aviation industry, known as CRPN) by the end of this year. The company plans to draw on the support provided by these new shareholders to further develop its business across North America and Asia and make acquisitions that will add to its range of services.

Reducing CO₂ emissions and costs: fuel, a major issue within the aviation industry

The aviation industry accounted for 2% of the world’s CO₂ emissions in 2022[1] and is in the midst of a transition, with most airlines aiming to become carbon neutral by 2050[2] in response to the climate emergency. Fuel plays a crucial role in achieving this goal, representing approximately 30% of an airline’s operating expenses [3], making it a significant economic lever. It is with this dual challenge in mind that Alexandre Feray founded OpenAirlines back in 2006.

Breakthrough technology for a more environmentally responsible aviation industry

OpenAirlines is developing a digital environmental performance management solution marketed under the name of SkyBreathe® and designed to help airlines reduce their fuel consumption and CO₂ emissions at each stage of the flight cycle. The solution, available in SaaS mode[4], leverages advanced machine learning and artificial intelligence technologies, analysing over 15 million flights with the aim of issuing recommendations and optimising eco-flying. OpenAirlines boasts the largest database on the market and a powerful set of tools, enabling pilots and ground crews to make better decisions. By doing so, it reduces fuel consumption by 3% to 5% per flight and generates returns on investment of 10x to 15x for its clients. The company wishes to continue developing SkyBreathe® OnBoard, its cockpit connectivity technology providing pilots with recommendations in real time. It also seeks to expand its product portfolio by designing tools tailored to air traffic controllers as well as tools that will assist airlines with their ESG programmes[5] amid increasingly stringent regulations.

Already generating a tangible impact on the aviation industry’s ecological transition

This value proposition is unparalleled in the market and has enabled OpenAirlines to quickly establish itself as a key player in the aviation industry’s ecological transition. Over 70 airlines worldwide currently make use of its technology, including Air France, Korean Air, EasyJet, JetBlue, flyDubai, Indigo and DHL.

Companies using SkyBreathe® made significant strides in reducing their carbon footprints in 2023 by avoiding 1.4 million metric tons of CO₂ and saving 420,000 tons of fuel. By way of comparison, this corresponds to seven times the amount of CO₂ saved by all the sustainable aviation fuels (SAF) produced worldwide the previous year.

Profitable growth and solid growth prospects

OpenAirlines has turned in a profit since 2021 and delivered annual growth of 30% for the past five years. It continues to expand rapidly, achieving €10 million in annual recurring revenue (ARR) in 2024. The start-up is headquartered in Toulouse and operates offices in the United States, Canada and Hong Kong. It currently generates 37% of its revenues in Europe, 30% in the Americas and 33% in the Asia-Pacific, Middle East and Africa region.

OpenAirlines is expanding its ambitions in the aviation decarbonisation market, which is set to triple in size by 2030, with this funding of nearly €45 million. The operation seeks to consolidate the company’s position as the world’s no.1 and is backed by Eiffel Essentiel (the lead manager) and Mirova (via its private equity strategy), both major contributors of funding for Europe’s energy transition. The operation also marks the exit of OpenAirlines’ long-standing investor, Alter Equity, which has backed the company since 2015.

A new phase of growth to consolidate its position as a world leader

With these new investors on board, OpenAirlines will be able to step up its growth strategy and consolidate its position as a world leader. It plans to do so by further developing its business across Asia and North America, both of which are strategic and fast-growing markets. OpenAirlines also intends to cater to the entire spectrum of airline departments by building on its range of services aimed at enhancing energy efficiencies and reducing carbon footprints. With this in mind, OpenAirlines plans to launch an ambitious external growth strategy seeking to expand the range of services offered through its SkyBreathe platform.

Alexandre Feray, CEO of OpenAirlines, gave the following statement: “Thanks to the support of Eiffel Investment Group and Mirova, we now have the resources we need to position ourselves as an aggregator within our market. We will be able to make bolt-on acquisitions aimed at beefing up our range of products and services and thus cater to airlines as a real digital game-changer when it comes to reducing carbon footprints. Having already embedded our technology in the cockpit, our aim now is to rally all business lines around a joint project: to combine operating performance with environmental engagement in order to help build a more sustainable aviation industry”.

Céline André, Director of the Eiffel Essentiel fund, added: “OpenAirlines is currently the only player on the market offering airlines the actual tools they need to take urgent action, bearing in mind that the industry has net zero emissions targets to meet by 2050 and that the requirement to integrate sustainable aviation fuels will take time to deliver any benefits. The company is already generating an impressive financial and non-financial impact, and we are delighted to support it through this next phase of its development”.

Youssef Belatar, Investment Director at Mirova, had the following to say: “The aim of our strategy is to combine financial returns with support for the environmental transition by deploying acceleration capital that finances innovative solutions. OpenAirlines is an inspiring example of how technological innovation can help industries transition to a more sustainable business model. OpenAirlines makes use of advanced environmental performance management solutions and therefore also offers concrete tools geared towards helping airlines reduce their carbon emissions and operating expenses. We are excited to become involved in the next stages of OpenAirlines’ growth trajectory”.