By Jane Lanhee Lee
(Reuters) – FLYR Labs, maker of software that uses artificial intelligence to help airlines price and plan flights, said on Wednesday it raised $150 million in equity financing.
FLYR CEO Alex Mans said the software uses available commercial and event information among other data points to make pricing and scheduling suggestions. Most airlines still rely heavily on human analysts for this work, he said.
According to FLYR, for example, scheduled flights from the northeastern United States to Florida and Latin America will not meet demand in the upcoming holiday season, especially morning and afternoon flights during the week of Dec. 13.
Airlines can use that information to add more flights or make other changes.
The San Francisco startup said it has over half a dozen airline customers including Air New Zealand Ltd and by the end of the year will have more than 10.
“By the end of this year, we’re on track to manage approximately $14 billion worth of airlines’ revenues,” Mans said, adding that the global revenue for the airline industry in 2019 was about $800 billion. “Our target is $100 billion dollars of revenue under management by the end of 2023.”
Mans said eventually FLYR will extend its service to rental cars, entertainment events, cargo and railways.
The latest funding round was led by WestCap, a firm that invests in startups that are ready to expand. JetBlue Technology Ventures, the investment arm of JetBlue Airways Corp, also participated.
FLYR declined to give its valuation.
(Reporting By Jane Lanhee Lee; Editing by Cynthia Osterman)
