Avelo Airlines to retire Boeing 737-700s and close 3 US bases
January 7, 2026
US-based ultra-low-cost carrier Avelo Airlines has announced plans to shrink its operational footprint, reducing its fleet size and closing several of its mainland US bases as the company consolidates its financial position following a recapitalisation.
While the airline has framed the move as a balance sheet transformation from a position of strength, the changes represent a meaningful retrenchment for a carrier that built its brand on decentralised growth across underserved US markets.
Avelo’s new strategy will see multiple base closures across the US
In a statement issued on 6 January, Avelo said it had been recapitalised and that its cash position was now “one of the strongest in the US airline industry relative to its size.” The airline said it will use this strengthened balance sheet to execute its long-term strategy.
That strategy includes scaling back operations, closing several bases and removing older aircraft from the fleet as Avelo refocuses around a smaller number of core operating locations.
Under the new plans, Avelo will streamline its network around just four mainland bases: New Haven Airport (HVN) in Connecticut, Philadelphia/Delaware Valley Airport (ILG) in Pennsylvania, Charlotte/Concord Airport (USA) in North Carolina, and Central Florida/Lakeland Airport (LAL) in Florida.
The airline also confirmed plans to open a new base at Dallas/McKinney Airport (TKI) in Texas, although this will not take place until late 2026, leaving Avelo with a reduced mainland footprint in the interim.
However, with the consolidation of services around these bases, Avelo has said it will close its bases in Mesa Airport (AZA) in Arizona, Raleigh-Durham Airport (RDU) in North Carolina, and Wilmington Airport (ILM), also in North Carolina.
The airline will continue to serve Raleigh-Durham from New Haven and Rochester (ROC), and Wilmington from Nashville (BNA), New Haven, Tampa (TPA) and Baltimore/Washington (BWI).
Avelo will also consolidate its Boeing 737NG fleet
The operational retrenchment is mirrored in Avelo’s fleet plans. The airline says it will remove six Boeing 737-700s, leaving it primarily operating the more efficient Boeing 737-800.
According to Planespotters.net, the airline’s fleet currently comprises eight 149-seat Boeing 737-700s with an average fleet age of 19.7 years. These are supplemented by 14 Boeing 737-800s, each of which accommodates 189 passengers.
According to the airline’s statement, “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.”
In September 2025, Avelo placed firm orders for 50 Embraer E195-E2s with purchase rights for a further 50, in a transaction valued at $4.4 billion at list prices. Deliveries of the new jets are scheduled to begin in the first half of 2027, with staged deliveries running through to 2032.
At the time of the order announcement, the airline said that the E2s would complement its Boeing 737NGs initially, with performance benefits that open up short-runway and constrained airports.
Turbulent times for Avelo as it approaches its fifth birthday
Avelo Airlines, which first started flying domestic US flights in April 2021, has grown steadily in its short life.
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 was to “unlock a new era of convenience, choice and competition by flying to primarily underserved communities across the country.”
However, in recent months and notwithstanding the Embraer order, the airline has gone through a period of turbulence, announcing a raft of changes, particularly on the US West Coast, where the airline cut its teeth in its early days.
In late September 2025, the airline’s Founder and CEO, Andrew Levy, said that Avelo was closing its base at Hollywood Burbank Airport (BUR) and would reduce the number of aircraft based there from three to one before exiting completely from the West Coast on 2 December 2025.
Hollywood Burbank Airport had been Avelo’s West Coast base since it launched operations. However, financial struggles and consumer boycotts were reported to be behind the airline’s decision to retreat from California and the Pacific Northwest completely.
The boycotts came about following the airline’s decision to accept government contracts with the US Department of Immigration and Customs Enforcement (ICE) in April 23025 to carry out deportation flights.
The flights carrying undocumented migrants began in May 2025 with flights from Mesa, Arizona, but sparked controversy. In Connecticut, 19,000 people signed a petition not to fly Avelo, while local officials also threatened to withdraw financial incentives.
Featured image: Markus Mainka / stock.adobe.com
