Avelo Airlines’ East Coast pivot: The airport winners and losers revealed
October 22, 2025
The rapid rise of Avelo Airlines on the US West Coast has come to an abrupt end. Just four years after launching from Hollywood Burbank Airport with ambitions to “unlock a new era of convenience, choice and competition,” the low-cost carrier is closing its Burbank base and shutting down all West Coast operations.
The move marks a decisive strategic pivot to the East Coast, where Avelo’s newer bases in Connecticut, North Carolina, Delaware and Florida are proving more profitable and less crowded. For some regional airports in California and Oregon, Avelo’s exit means losing their only commercial connections. For others along the Atlantic seaboard, it’s the start of a rapid expansion in affordable routes and investment.
Avelo Airlines: Convenience, choice and competition
Avelo launched in 2021 as a low-cost challenger focused on underserved markets. Its first flight took off from Hollywood Burbank to Sonoma County on 28 April that year, operated by one of its Boeing 737s.
But despite early enthusiasm, the West Coast model quickly proved unsustainable. In July 2025, the airline confirmed it would close its Burbank base by December. By September, that date had been brought forward to 20 October.
Chief Executive Andrew Levy admitted that the network “wasn’t delivering adequate financial returns,” while the accelerated closure reflected “aircraft needs elsewhere and a lack of demand during the final month.”
Avelo CEO, Andrew Levy, said the reason behind the original decision to cease operations from Burbank was that the West Coast routes weren’t delivering adequate financial returns. The expedited move was due to “aircraft needs elsewhere and a lack of demand during the final month.”
By August, Avelo’s presence at Burbank had already dwindled to a single aircraft. With major competitors like Southwest, Alaska, American and Delta dominating California’s short-haul market, carving out a profitable niche proved impossible.
Avelo’s losers: The West Coast airports losing connectivity
Avelo’s withdrawal leaves a string of regional airports without service. Among those losing Avelo flights are:
- Burbank (BUR) – the airline’s original base and launch point
- Santa Rosa/Sonoma County (STS)
- Arcata/Eureka (ACV)
- Eugene (EUG)
- Medford (MFR)
- Pasco (PSC)
- Redmond/Bend (RDM)
- Salem (SLE)
- Palm Springs (PSP)
- Ontario (ONT)
- Redding (RDD)
Protesters cheered when Avelo flew its last flight out of EUG, following unrest over the airline’s contract to operate deportation flights. The airline had faced opposition after agreeing to a contract with the Department of Immigration and Customs Enforcement (ICE) to operate deportation flights on three aircraft based at Mesa Gateway Airport in Arizona.
Protesters cheer as Avelo's last flight leaves Eugene https://t.co/c24th4zGnp
— The Register-Guard (@registerguard) October 21, 2025
For airports along America’s West Coast, Avelo’s decision to exit the region is a setback in regional air connectivity.
Several smaller regional airports, such as STS, ACV, MFR and RDD, were reliant on Avelo as either their sole or one of only a handful of commercial operators. In some cases, airports will now lose their only direct link to Southern California and other destinations served solely by Avelo.
The reduction in passenger traffic will have a knock-on effect on the local economy, affecting tourism inflows and diminishing connectivity for local residents.
In addition to local airport workforces, hospitality businesses will feel the loss of traffic generated by Avelo’s passengers.
Avelo’s winners: The East Coast bases with added capacity
Avelo’s pivot to the East Coast and bases such as Tweed-New Haven (HVN), which is now Avelo’s top-performing base, and Raleigh-Durham (RDU) suggests the airline is looking to consolidate where competition is lighter, demand and yields have typically been stronger, and profitability is easier to attain.
Other airports seeing gains include:
- Lakeland, Florida (LAL) – a key Sun Belt base with new routes to Rochester (ROC)
- Hartford/Bradley (BDL) – retaining leisure routes to Cancun, Montego Bay and Punta Cana
- Wilmington, North Carolina (ILM) – expanding to 17 destinations, including its first international route
- Charlotte/Concord (JQF) – a new base with fresh East Coast spokes
- Wilmington, Delaware (ILG) – enjoying consistent growth and aircraft utilisation
The airline is extending its East Coast schedule through mid-February 2026, covering nearly 40 destinations.
Speaking in July, Trevor Yealy, Avelo Airlines’ head of commercial, said the extension of the airline’s East Coast flight schedule will enable passengers to “get a head start on booking holiday vacation or weekend getaways to nearly 40 popular destinations.”
Capital investment and fleet expansion
The East Coast expansion also follows an announcement in September that the airline had closed on a new round of significant growth capital to support its continued growth.
Levy said the new capital “positions us to continue delivering reliable, affordable travel options to millions of customers who are underserved by other carriers.”
He also hinted that changes were afoot as he 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 also coincided with Avelo’s confirmation of 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, making Avelo the first US carrier to operate Embraer’s largest commercial aircraft.
NEWS | @AveloAir Orders up to 100 Embraer E195‑E2s to Modernize Fleet, Reduce Cost, and Fuel Growth. Read full news: https://t.co/ImkM1fmaWc pic.twitter.com/Xfik7pzZfv
— Embraer (@embraer) September 10, 2025
The short-field performance of Embraer’s Enhanced Takeoff System (E2TS) will further unlock new markets for Avelo and optimise capacity across the airline’s airport network. “The aircraft’s exceptional performance, size and efficiency make it the perfect choice for the future growth of our scheduled service network,” said Levy.
“Our customers will love the E2’s comfortable 2×2 seating, in-seat power ports, large overhead bins and quiet cabin.”
What Avelo’s reshuffle means for US regional aviation
Avelo’s decision underscores how brutally competitive the US domestic market remains. West Coast cities, crowded with legacy carriers and low-cost rivals, left little room for a start-up to thrive. On the East Coast, by contrast, mid-sized airports and secondary cities are hungry for affordable service and easier access.
For travellers in Connecticut, North Carolina, Delaware and Florida, Avelo’s pivot promises more choice and lower fares. For smaller West Coast communities, it’s a blow to regional connectivity — and a reminder that convenience-focused air travel only works where the economics do too.
Featured image: Avelo Airlines
