US discounter Avelo Airlines is “streamlining” its network and fleet following a recapitalisation effort that has provided the carrier with a stronger balance sheet.
Moves announced on 6 January include closing a trio of crew bases – in Mesa, Arizona, Raleigh-Durham and Wilmington, North Carolina – and making “near-term schedule changes that will impact many customer itineraries”.
”Communication will be sent directly to impacted customers by email and text,” the airline says.
Avelo emphasises that it will continue flying to Raleigh-Durham and Wilmington from elsewhere in its network, and that the changes will position it for a more prosperous future.
The Houston-based low-cost carrier also plans to remove six Boeing 737-700s from its fleet, leaving it to “primarily” operate “more-efficient” 737-800s.
Fleets data provided by aviation analytics firm Cirium show that Avelo currently operates 22 mid-life Boeing narrowbodies, including eight 737-700s and 14 737-800s.
That means Avelo will operate only two 737-700s in coming months. It does not provide a timeline for removing the rest of those jets from its fleet.
”These changes enable Avelo to focus on sustainably scaling five core bases in 2026 and to prepare the company for growth in the coming years, facilitated by the company’s recent order for up to 100 Embraer 195-E2 aircraft,” the airline says.
Avelo will focus on its remaining bases in New Haven, Connecticut; Charlotte, North Carolina; Lakeland, Florida; and Philadelphia/Delaware Valley. It plans to open a fifth base in McKinney, Texas – located in the greater Dallas region – late in 2026.
Avelo chief executive Andrew Levy told FlightGlobal in September that the airline plans to receive its first E195-E2 in early 2027 and for deliveries to continue into 2032. It considers the incoming E-Jets well-suited for smaller, niche markets that major US carriers avoid.
Shifting market dynamics, including lagging demand for low-cost airline seats, have forced Avelo to make difficult decisions. Last year saw the start-up carrier – launched in April 2021 – pull out of its first operational base in Burbank, California and withdraw entirely from the West Coast of the USA.
Levy cited stiff competition from the likes of Alaska Airlines and Southwest Airlines – along with high fuel costs and a generally difficult business environment in California – as factors in the airline’s decision to exit the greater Los Angeles area.
But it has taken steps to find firmer financial footing, including its recent recapitalisation. In September, the carrier secured a third round of funding, with the cash infusion representing the “largest single investment in Avelo” since its pre-launch phase.
