Bealguered Avelo will close West Coast operations by December and exit 10 cities in December as it struggles economically.
Avelo CEO Andrew Levy, citing the “current operating environment” and has notified employees and customers that it will shrink operations significantly by August 12 at its Hollywood Burbank Airport (BUR) base and exit the market entirely by December 2.
“We believe that in the current operating environment, BUR will not be able to provide adequate financial returns in the context of competitive competition,” he wrote in a letter viewed by TPG. “We intend to re-deploy these BUR aircraft to the business area where we see more effective long-term growth prospects, while also enhancing depth and breadth for our East Coast operations.”
More: Startup Avelo will launch in the East, but it draws westward from competitors’ cuts in California
Here are the details of the Avelo market exit:
- August 10 at Salem-Willamette Valley Airport (SLE) in Oregon
- Charles Schultz-Sonoma County Airport (STS) near Santa Rosa, California and Harry Reed International Airport (LAS) on August 11 in Las Vegas
- August 30 at Glacier Park International Airport (FCA) in Montana
- December 1
- California Redwood Coast – Humbot County Airport (ACV) near Eureka, California; Tri-City Airport (PSC) near Pasco, Washington; and Rogue Valley International Medford Airport (MFR) on December 2 at Oregon
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Burbank is Avelo’s first airport and home to many routes launched by startup airlines in 2021. At the time, Levy said Avelo was initially planned to launch in the East, but the rival’s cuts in California unexpectedly opened a door for operators there.
When Avelo decided to operate deportation flights from the United States for immigration and customs enforcement, the cuts faced strong opposition. The move prompted critics to launch an “Avelno” advertising campaign in Connecticut, which owns a base.
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However, Avelo had been struggling before the deportation protests. According to the latest data from the U.S. Transportation Agency through aviation analysis company Cirium, the airline caused nearly $14 million in operational losses in the first quarter. Even if the airlines fly 21% of the flights, the average fare has dropped by nearly 20%.
Cirium data shows that the airline’s West Coast resort cuts its timeline by nearly 10% based on second-quarter figures.
After Avelo’s cuts, SLE is Salem, the capital of Salem, Oregon. Cirium program data shows that ACV is only provided by United Airlines.
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