Avelo Airlines is restructuring its operations as part of a broad turnaround effort.
The start-up budget airline said this week it would close three of its bases, refocus its network around its remaining four bases and change its timetable to shore up its financial performance during a loss-making period for the airline.
Avelo will close its bases at Mesa Gateway Airport in Arizona (AZA), Raleigh-Durham International Airport in North Carolina (RDU) and Wilmington International Airport in North Carolina (ILM). The airline said in a statement that it will continue to operate a number of routes from RDU and ILM.
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Avelo said it will “streamline” its network around its remaining four bases: Connecticut’s Tweed New Haven Airport (HVN), Delaware’s Wilmington Airport (ILG), North Carolina’s Concord-Paget Regional Airport (USA) and Florida’s Lakeland Linder International Airport (LAL).
The airline also plans to open a new base later this year at Texas McKinney National Airport (TKI), about 30 miles from downtown Dallas. The airport is currently not served by commercial airlines, meaning Aveiro may be the only airline flying to the airport if no other airlines add service.
As part of the restructuring, Aveiro said it plans to make significant changes to its flight schedule in the coming days and months, meaning some customers who have already booked flights will see their bookings changed or cancelled.
“Communications will be sent directly to affected customers via email and text message,” the airline said.
As part of the change, the airline will stop operating charter flights for the U.S. government that have been used to transport people deported by U.S. Immigration and Customs Enforcement. The airline operates these flights from its AZA base. The deportation flights were met with backlash and protests from some politicians and customers.
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The airline’s chief executive, Andrew Levy, said in an email to employees that charter flights “provided short-term benefits, but ultimately did not provide enough consistent and predictable revenue to overcome… operational complexities and costs,” CNBC reported.
Avelo also said it plans to simplify its fleet — at least for now. The airline will park six Boeing 737-700 jets, focusing on its larger 787-800 fleet, which are more efficient per seat.
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But Aveiro would not have a fleet for long. The airline recently announced an order for up to 100 Embraer E195-E2 aircraft, which are scheduled to begin arriving in the first half of 2027. Aveiro plans to use smaller jets to expand its network by flying leaner, thinner routes.
The changes come as Avelo announced it had undergone a recapitalization, a form of business restructuring that allows the company to convert debt and equity to free up more cash and gain flexibility.
Avelo announced last fall that it had secured a third round of investor funding as it has struggled to find a solid financial footing as changing market dynamics put more pressure on ultra-low-cost carriers and premium upsells that have helped legacy airlines boost profit margins. Last year, the airline closed a base at Hollywood Burbank Airport (BUR) in California and then halted all West Coast flights.
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