Avelo streamlines network and fleet, ends deportations

Avelo Airlines is shaking up its operation as part of a wide-ranging turnaround effort.

The startup budget airline said this week that it would close three of its bases and realign its network around four remaining bases, changing its schedule as it moves to firm up its financial performance amid a period of losses for the carrier.

Avelo will shut its bases at Arizona’s Mesa Gateway Airport (AZA), Raleigh-Durham International Airport (RDU) in North Carolina, and Wilmington International Airport (ILM), also in North Carolina. In a statement, the airline said it would continue to fly several routes from RDU and ILM.

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Avelo said it would “streamline” its network around the remaining four bases: Tweed New Haven Airport (HVN) in Connecticut, Wilmington Airport (ILG) in Delaware, Concord-Padgett Regional Airport (USA) in North Carolina and Lakeland Linder International Airport (LAL) in Florida.

The airline also plans to open a new base later this year at McKinney National Airport (TKI) in Texas, about 30 miles from downtown Dallas. The airport currently has no commercial airline service, meaning Avelo could be the only carrier flying there if no other airlines add service it.

As part of the shake-up, Avelo says it plans to make significant changes to its schedule in the coming days and months, meaning that some customers who have already booked flights will see their reservations changed or canceled.

“Communication will be sent directly to impacted Customers by email and text,” the airline said.

As part of the change, the airline will stop operating charter flights for the U.S. government, which have been used to transport people being deported by U.S. Immigration and Customs Enforcement. The airline operated the flights from its AZA base. The deportation flights have been met with backlash and protests from some politicians and customers.

Airline CEO Andrew Levy said in an email to staff that the charter flights “provided short-term benefits but ultimately did not deliver enough consistent and predictable revenue to overcome … operational complexity and costs,” CNBC reported.

Avelo also said it plans to simplify its fleet — at least, for now. The airline will park six of its Boeing 737-700 jets, focusing on its larger fleet of 787-800s, which are more efficient on a per-seat basis.

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But Avelo won’t have a single fleet for long; the airline recently announced an order of up to 100 Embraer E195-E2s, which are scheduled to start arriving in the first half of 2027. Avelo plans to use the smaller jets to expand its network by flying leaner, thinner routes.

The changes come as Avelo announces it has been recapitalized — a form of business restructuring that allows companies to convert debt and equity to free up more cash and gain flexibility.

Avelo announced last fall that it had secured a third round of investor funding, as it has struggled to find a firm financial footing amid a shift in market dynamics that has seen more pressure on ultra-low-cost carriers, with premium upsells helping the traditional airlines increase their profit margins. Last year, the airline closed a base at Hollywood Burbank Airport (BUR) in California before ending all West Coast flying.

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