Avelo Airlines Shuts Down West Coast Operations, Exiting 10 Cities

Avelo Airlines has announced it will cease operations on the West Coast, exiting ten cities by December due to ongoing financial challenges. The airline’s CEO, Andrew Levy, communicated this decision to staff and customers, citing the “current operating environment” as a significant factor in the company’s strategic shift.

Effective August 12, Avelo will begin to scale back its operations at Hollywood Burbank Airport (BUR), its initial base of operations since its launch in 2021. By December 2, the airline will completely withdraw from the West Coast market. In his letter, Levy expressed concerns about the financial viability of continuing services from BUR amidst intense competition, stating, “We believe the continuation of service from BUR in the current operating environment will not deliver adequate financial returns.”

Avelo’s decision to pivot away from the West Coast comes as the airline seeks to redeploy its resources toward markets with more promising growth potential on the East Coast. The initial strategy for Avelo was to launch in Eastern markets, but the opportunity to enter California arose when rival airlines made significant cuts, allowing Avelo to establish its presence.

The following cities will be affected by Avelo’s withdrawal:

– Burbank (BUR)
– Salem (SLE), Oregon
– Arcata/Eureka (ACV), California
– And seven other cities

The closure of operations in Salem means that the city will lose all commercial air service following Avelo’s exit, while Arcata/Eureka will be left with service only from United Airlines.

Avelo’s financial troubles were evident even before the recent backlash over its involvement in deportation flights for Immigration and Customs Enforcement (ICE). The airline reported a nearly $14 million operating loss in the first quarter, as per data from the U.S. Bureau of Transportation Statistics and aviation analytics firm Cirium. Despite increasing flight frequency by 21%, Avelo saw average fares drop nearly 20%, contributing to its decision to cut back on its West Coast schedule, which represents a nearly 10% reduction based on second-quarter data.

The airline’s retreat from the West Coast underscores the challenges faced by budget carriers in an increasingly competitive landscape. Avelo’s focus will now shift to strengthening its East Coast operations, where it believes it can achieve more sustainable growth.

As Avelo navigates this transition, it remains to be seen how these changes will impact its overall business strategy and customer base. For travelers in the affected cities, the loss of Avelo services may necessitate adjustments in travel plans, as options become more limited.