A little over four years ago, Avelo Airlines launched operations, initially exclusively operating flights to and from the West Coast. Well, the airline appears to be cutting all of its West Coast service, instead focusing on the East Coast. Did the airline make some strategic blunders, or is the US airline business just basically impossible?
In this post:
Avelo winding down West Coast operations
For some context, Avelo commenced service in April 2021, operating a fleet of all-economy Boeing 737s. The carrier’s strategy was essentially to set up bases at airports with potential that had limited competition, and then operating point-to-point routes in underserved markets.
Avelo’s first hub was in Burbank (BUR), with service in the western part of the United States — below is what Avelo’s route map looked like at launch. One of Avelo’s next bases was in Santa Rosa (STS).
While the carrier has continued to operate on the West Coast, we eventually saw the company increasingly expand to the East Coast, setting up bases in places like Hartford (BDL), Lakeland (LAL), New Haven (HVN), Raleigh-Durham, (RDU), Wilmington (ILM), and more. For example, below is the carrier’s current destination map.
There’s now an interesting update, as flagged by IshrionA. It appears that by early December 2025, Avelo intends to completely discontinue service on the West Coast, meaning it’ll fully pull out of Burbank, Santa Rosa, etc.
Not only is the airline not accepting any West Coast reservations for travel beyond those dates, but an email from Avelo customer service even confirms the closure of the Burbank base.
This is obviously pretty significant, and it also shows how quickly the industry evolves. At launch, Avelo seemed to view the West Coast as the area with the most potential, while that’s clearly no longer the case.
Is Avelo’s business model just toast, or what?
It’s not really surprising to see Avelo’s lack of success, given the fundamental shift we’ve seen in the US airline industry.
Labor costs have gone way up, the legacy carriers are better at competing with basic economy as they fly larger planes, and the major carriers are also making a large percentage of their profits from loyalty programs. When you add in the strong demand for premium leisure and long haul travel, it makes it really hard for any small, independent US carrier to succeed.
Avelo is not in a great spot financially. For example, the airline recently started operating ICE deportation flights, since that’s seemingly the most profitable flying that the airline can pick up. That has of course proven controversial, with many local communities and prospective customers protesting the company’s decision. I’m curious if that has had any material impact on the carrier’s demand in California, or if it’s totally unrelated.
Avelo isn’t publicly traded, so we don’t have full insights into the carrier’s financials. However, it seems pretty clear that the airline isn’t doing so well. Avelo’s East Coast network is certainly unique, in terms of the airports the airline has focused on. However, I’m not convinced the fate there will be materially different.
Perhaps Avelo just decided that the West Coast network had matured as much as it was going to, and decided to end service for that reason, while wanting to give the East Coast more time.
Bottom line
Avelo Airlines appears to be ending all of its West Coast operations by early December 2025, including closing its Burbank base. When the airline launched operations four years ago, it was all about the West Coast, while now the focus is on the East Coast.
With how the industry has shifted, I can’t imagine Avelo’s prospects as a scheduled operator are great. Maybe going all-in on deportation is the more lucrative business model?
What do you make of Avelo’s geographical evolution?
I wish Avelo a prosperous future with many more ICE flights to come. It’s good business AND makes a once great nation great AGAIN. Buhuhu to all the snowflakes.
Several trips STS-PSP
It was so easy
10 minutes max for security either way
cool story bro
It’s very tough for Burbank airport .Southwest prdvioug pulled out.
It’s such a such a great airport for the LA basin, so much easier than LAX. Sliding towards shabby but much less hassle.
Avelo was facing strong backlash from the community and even some city leaders in Salem over the deportation flights.
This is pretty sad for those of us that like to use BUR.
AVELO (and WN) kept fares sane and offered direct flights to convenient destinations out of Burbank.
Of course, WN has stopped being the Southwest we knew and loved.
With AVELO out this reverts to high-fare-heaven, just like SNA.
Deportation flights are the best thing about Avelo. Hoping they do thousands of them!
What a ghoulish thing to say
I loved Avelo at first, but Tweed is way beyond passenger capacity. I recently arrived 3 hours before my flight and still almost missed it. Lines extended around the outside of the airport. And then ugh, the ICE flights. I’m out.
Looks like the west coast wasn't interested in supporting Air Auschwitz.
Let's see how long they last out east.
As someone who lost family in the Holocaust, this is a very offensive comparison. Agree or disagree with what’s going on, but deporting foreign nationals (even in an illegal fashion) isn’t gassing 6 million people based on their religion/race. They’re all still breathing.
The 6 million gassing didn't happen overnight. It started with targeting people based on race (like right now), deeming them as criminals trumped up civil charges (like right now) and putting folks in unhygienic detention centers without due process (like right now).
Just because the current admin hasn't reached the gassing part doesn't mean we shouldn't make apt comparisons
ICE is targeting people here ilegaly. The fact that many might appear to originate in Countries where many people are Hispanic or black is immaterial. The charges are simply being here illegal. Speaking about unhygienic in a discussion comparing to the Holocaust is obscene.
The comparison to Auschwitz is beyond obscene. The deported individuals broke the law by entering the USA or staying beyond tourist purposes. Few Countries accept all undocumented people and those that do experience extra death and mayhem. Only in your deranged mind is there any comparison to Auschwitz.
I had parents that survived Auschwitz and relatives that were murdered there. None were transported there on aircraft with individual seats. By the way, my parents...
The comparison to Auschwitz is beyond obscene. The deported individuals broke the law by entering the USA or staying beyond tourist purposes. Few Countries accept all undocumented people and those that do experience extra death and mayhem. Only in your deranged mind is there any comparison to Auschwitz.
I had parents that survived Auschwitz and relatives that were murdered there. None were transported there on aircraft with individual seats. By the way, my parents waited to enter this Country legally and never took any benefits except for Medicare which was a benefit of Social Security which they overpaid (look up notch years).
awesome. they deserve it. after learning about their ICE flights, I was done. It's really awful for their employees. But, clearly, their leadership is horrendous. I hope their front-line employees all find positions with better, more reputable and ethical carriers.
Couldn’t care less; they want to carry people who were given no legal rights under contract, I’ll take my business elsewhere. They should have never gotten into that business.
And to think Elko and the West is where this certificate managed to gain Air Carrier traction prior to its equity infusion and rebranding to Avelo.
Maybe Avelo should just slap some Jack, Queen, and King decals on the tails of some of their planes, “roll the dice,” and see if this d/b/a Casino Express might pick up where they left off with sort of heretical presence to its roots West of the Mississippi.
Avelo has done quite well out of New Haven. I think there will be interest from other airlines to move in after the new terminal and runway expansions; we'll see if Avelo can maintain their dominant position.
I suppose it's possible that the Eastern hubs are doing ok for Avelo, or at least the regional proximity allows Avelo to manage costs like planes and employees more efficiently than would be the case if they had to continue operating the Western operation too.
Avelo should try to take over Delta! After all, the other of the big 3 are LCC's. United is actually Continental/Texas International and American is actually America West.
The most premium deportation flights!
I actually thought Avelo would make it work, they held out for a long-time. At the beginning Alaska put some effort into squatting on Avelo routes (BUR-STS, LAS-STS) but never matched the breadth that Avelo offered in these small markets. I always was skeptical that Avelo could fill mainline on some of these. Curious to see if AS fills some of the gaps with E175s now with Avelo gone. RDM could do well flying to...
I actually thought Avelo would make it work, they held out for a long-time. At the beginning Alaska put some effort into squatting on Avelo routes (BUR-STS, LAS-STS) but never matched the breadth that Avelo offered in these small markets. I always was skeptical that Avelo could fill mainline on some of these. Curious to see if AS fills some of the gaps with E175s now with Avelo gone. RDM could do well flying to LAS and BUR in particular. I don't know about the revenue guarantees SLE provided but I could see United picking up that market with flights to DEN and SFO as they do with many small cities in the west.
This is pretty sad for those of us that like to use BUR.
AVELO (and WN) kept fares sane and offered direct flights to convenient destinations out of Burbank.
Of course, WN has stopped being the Southwest we knew and loved.
With AVELO out this reverts to high-fare-heaven, just like SNA.
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With AS busy swallowing Hawaiian and dreaming of nonstops to Asia? I doubt they have the management focus to snatch up...
This is pretty sad for those of us that like to use BUR.
AVELO (and WN) kept fares sane and offered direct flights to convenient destinations out of Burbank.
Of course, WN has stopped being the Southwest we knew and loved.
With AVELO out this reverts to high-fare-heaven, just like SNA.
--------------------\
With AS busy swallowing Hawaiian and dreaming of nonstops to Asia? I doubt they have the management focus to snatch up tasty ex-AVELO routes.
Some of the abandoned legs would be nicely covered with "Horizon" small jets though.
As easy an airport as BUR is, not terribly surprised there isn’t much demand for randomly timed flights on random days to smaller destinations. They share the smaller portion of the terminal with Alaska and United and their load factors always looked pretty light.
I also find it amusing that on their startup map, Phoenix/Mesa airport is practically in New Mexico.
Let’s Not Forget Avelo has plans to start up Dallas,TX/TKI from a temporary Trailer park type terminal set up until TKI can build its new Terminal facility. With Avelo losing money and market share monthly at BUR in addition the new BUR terminal will triple Avelo operating cost further reducing its profitability/Break Even margins. So closing down its struggling West Coast operations just makes sense. The only Staff they not a 3ed party Contractor are...
Let’s Not Forget Avelo has plans to start up Dallas,TX/TKI from a temporary Trailer park type terminal set up until TKI can build its new Terminal facility. With Avelo losing money and market share monthly at BUR in addition the new BUR terminal will triple Avelo operating cost further reducing its profitability/Break Even margins. So closing down its struggling West Coast operations just makes sense. The only Staff they not a 3ed party Contractor are the Flight Attendants and Pilots. But they are non union so nothing guaranteed for relocation to other domiciles.
Perhaps there's more demand for gulag flights from the east coast to mystery destinations, causing Avelo to reapportion their flights away from the west.
Thank you, Avelo, for aiding and abetting the kidnapping of scofflaws, skipping due process, and sending them to prison camps in foreign countries.
Oh, come oh. What "Due Process" is missing?
CBP-ICE, under 8 CFR 287(a)(3), has every legal right to ascertain legal status of anyone inside the 100 mile zone. That's firmly enshrined in the code.
Anybody who's ever passed a checkpoint in Texas, NM or AZ? Knows full well the drill.
It's easy to see the uninitiated who post silly stuff like "the probable cause" or "the due process" argument. There is none for this type...
Oh, come oh. What "Due Process" is missing?
CBP-ICE, under 8 CFR 287(a)(3), has every legal right to ascertain legal status of anyone inside the 100 mile zone. That's firmly enshrined in the code.
Anybody who's ever passed a checkpoint in Texas, NM or AZ? Knows full well the drill.
It's easy to see the uninitiated who post silly stuff like "the probable cause" or "the due process" argument. There is none for this type of enforcement-- no one is above the law.
If you don't understand "100 mile zone"? Please don't post about what you are fuzzy on.
Tell us you’re not a lawyer without telling us you’re not a lawyer.
I'm a lawyer, and a damn good one. TravelinWilly in spite of his small cock is right on the money here. Deportations are a ghoulish affront to any semblance of a civil society with the rights we hold dear.
I love that Avelo took a political stance and helping our streets become safe to walk again. I only fly first or business class, so Avelo was never on my radar. But I do wish them much success.
And you see how well that worked out for them! Turns out the "woke mob" that they identified as their customer base doesn't care for the extrajudicial kidnapping and disappearance of innocent citizens and neighbors to extraterritorial concentration camps!
Don’t break the laws of our country. Period!!!
Weren't you pretending to be an Amlaw200 lawyer last month, or have they tried new meds for you now?
I have no idea about their financials, but Avelo does seem to have a lot of brand equity and some success out of Tweed New Haven airport. They fly over 1 million passengers annually out of Tweed. In contrast, they only flew around 400K out of Burbank.
All of my eastern CT friends and family love Avelo - a quick drive to New Haven gets them to most destinations they’d visit without the trip into NYC. Yes, they all *hate* the ULCC model but the convenience has saved them 2-3 hours each direction.
All of my friends who have family/frequent travels bringing them to CT also say the same thing. They love that Avelo serves the area.
Honestly, Breeze should set up some flights from Tweed New Haven to Florida. Their product is better aligned for what locals are looking for, and I'm sure Breeze would be more profitable than Avelo in those markets.
Breeze offers flights from New Haven to Sarasota, Tampa, Vero Beach, and West Palm Beach in Florida.
AVELO is awesome.