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Avelo Airlines exits West Coast markets amid financial struggles

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Avelo Airlines exits West Coast markets amid financial struggles
Research
Webp levy
Andrew Levy CEO at Avelo Airlines | Avelo Airlines

Avelo Airlines is set to close its West Coast operations and withdraw from 10 cities by December due to financial challenges. CEO Andrew Levy cited the "current operating environment" as a reason for the decision. Avelo will significantly reduce its operations at Hollywood Burbank Airport (BUR) by August 12 and exit the market entirely by December 2.

"We believe the continuation of service from BUR in the current operating environment will not deliver adequate financial returns in a highly competitive backdrop," Levy stated. The airline plans to redeploy its BUR aircraft to areas with more promising growth prospects, particularly on the East Coast.

The cities affected by Avelo's market exits include Salem-Willamette Valley Airport (SLE) in Oregon on August 10; Charles M. Schulz-Sonoma County Airport (STS) near Santa Rosa, California, and Harry Reid International Airport (LAS) in Las Vegas on August 11; Glacier Park International Airport (FCA) in Montana on August 30; Eugene Airport (EUG) and Redmond Municipal Airport (RDM) in Oregon on December 1; California Redwood Coast-Humboldt County Airport (ACV) near Eureka, California; Tri-Cities Airport (PSC) near Pasco, Washington; and Rogue Valley International-Medford Airport (MFR) in Oregon on December 2.

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Burbank was Avelo's first airport, where it launched several routes in 2021. Originally planning to launch operations in the East, Avelo moved West due to rivals' cuts in California.

The airline faces criticism for operating deportation flights for U.S. Immigration and Customs Enforcement, sparking an "AvelNO" ad campaign in Connecticut. Before this controversy, Avelo reported nearly $14 million operating loss in the first quarter as per data from the U.S. Bureau of Transportation Statistics via Cirium.

This West Coast retreat represents nearly a 10% schedule cut based on second-quarter numbers. After Avelo's withdrawal, SLE will have no commercial air service, while ACV will only be served by United Airlines.

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