Avelo Airlines’ early West Coast exit: A smart strategy or a sign of deeper turbulence for the low-cost carrier?
September 24, 2025
US-based low-cost carrier, Avelo Airlines, had planned to depart the West Coast on 2 December, following an announcement in July to close its Hollywood Burbank Airport base. However, according to a report in KTLA, the airline has now shifted that date forward to 20 October.
Officials said the decision to move the date was due to “aircraft needs elsewhere and a lack of demand during the final month.”
Convenience, choice and competition
When the airline launched four years ago in 2021 amid the COVID-19 pandemic with three used Boeing 737-800 aircraft, it was hailed as the first new airline in the US to start up in 15 years. Its mission – to “unlock a new era of convenience, choice and competition by flying to primarily underserved communities across the country.”
Most Avelo routes include at least one small, convenient airport, which, according to the airline, ensures a “smoother, easier and more enjoyable experience than contending with crowds, congestion and long walks at larger airports.”
The airline has seen impressive growth over the last four years. Its fleet, primarily comprised of Boeing 737NGs, has expanded to 22 aircraft, and the airline has built a network that spans 53 cities across 21 states as well as Puerto Rico, Jamaica, Mexico and the Dominican Republic.
Earlier in September, Avelo revealed it has flown nearly eight million customers on more than 62,000 flights since its launch in 2021. Earlier this year, the airline also revealed plans to extend its East Coast flights scheduled through mid-February 2026.
Avelo’s retreat from Burbank
However, by mid-July, things were starting to unravel for the airline’s West Coast operations. Founder and CEO, Andrew Levy, said that Avelo was closing its base at Hollywood Burbank Airport, reducing the number of aircraft based there from three to 1, before exiting completely from the West Coast on 2 December.
Hollywood Burbank Airport has been Avelo’s West Coast base since it launched operations, with flight services added to destinations in Northern California, Oregon and Montana.
However, financial struggles and consumer boycotts are believed to be behind the airline’s decision to retreat from California and the Pacific Northwest completely. With only one aircraft currently based at Burbank, the other aircraft in Avelo’s fleet have been stationed at the airline’s bases on the East Coast.
In April 2025, Avelo revealed it had accepted government contracts with the US Department of Immigration and Customs Enforcement (ICE) to carry out deportation flights.
The flights carrying undocumented migrants began in May with flights from Mesa, Arizona, but have sparked controversy. In Connecticut, 19,000 people signed a petition not to fly Avelo, while local officials threatened to withdraw financial incentives.
Growth capital versus market exit
Avelo’s plans to wrap up West Coast operations earlier than planned are in contrast with recent financial and operational announcements. On 8 September, the airline revealed it had closed on a new round of significant growth capital to support its continued expansion across the US and the Caribbean.
According to Levy, the funding underscores strong confidence in Avelo’s differentiated business model and track record. “This new capital strengthens our liquidity position and positions us to continue delivering reliable, affordable travel options to millions of customers who are underserved by other carriers.”
He also noted the investment comes at a “pivotal time in the domestic airline industry,” as it will allow Avelo to reinforce efforts to address a market that is “too often priced out by higher fare airlines.”
The funding announcement coincided with Avelo confirming an order for 50 Embraer E195-E2 aircraft, with purchase rights for 50 more. With a list price of $4.4 billion, the aircraft deliveries are expected to commence in the first half of 2027. Avelo will be the first US carrier to operate Embraer’s largest commercial aircraft.
Embraer commercial aviation president and CEO Arjan Meijer said that with this latest order, Avelo is “complementing its narrowbody fleet with the best-in-class E195-E2.” These new aircraft, he added, will “unlock new markets and optimise capacity across its network.”
Who fills the gap left by Avelo’s exit from the West Coast?
With Avelo pulling out of its operations from small airports on the Pacific Coast, another low-cost carrier, Breeze Airways, is expected to take over many of these service routes. As part of a wider West Coast expansion strategy, the Utah-based carrier plans to begin servicing those destinations from March 2026.
While Avelo reshapes its priorities to focus on Eastern operations and prepares for long-term fleet transformation, questions remain about how the airline will navigate brand perception, political scrutiny and gaps left in the wake of its early exit from Burbank.
