Beleaguered Avelo Airways will shut its West Coast operation and exit 10 cities by December because it struggles financially.
Citing the “present working surroundings,” Avelo CEO Andrew Levy has notified workers members and clients that it’ll considerably shrink operations at its Hollywood Burbank Airport (BUR) base by Aug. 12, and exit the market fully by Dec. 2.
“We imagine the continuation of service from BUR within the present working surroundings won’t ship satisfactory monetary returns in a extremely aggressive backdrop,” he wrote in a letter seen by TPG. “We intend to redeploy these BUR plane to enterprise areas the place we see extra environment friendly longer-term development prospects, whereas additionally constructing depth and breadth to our East Coast operation.”
Extra: Startup airline Avelo was going to launch within the East, nevertheless it went West to capitalize on rivals’ cuts in California
Beneath are particulars of Avelo’s market exits:
- Salem-Willamette Valley Airport (SLE) in Oregon on Aug. 10
- Charles M. Schulz-Sonoma County Airport (STS) close to Santa Rosa, California, and Harry Reid Worldwide Airport (LAS) in Las Vegas on Aug. 11
- Glacier Park Worldwide Airport (FCA) in Montana on Aug. 30
- Eugene Airport (EUG) and Redmond Municipal Airport (RDM) in Oregon on Dec. 1
- California Redwood Coast-Humboldt County Airport (ACV) close to Eureka, California; Tri-Cities Airport (PSC) close to Pasco, Washington; and Rogue Valley Worldwide-Medford Airport (MFR) in Oregon on Dec. 2
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Burbank was Avelo’s first airport, dwelling to quite a lot of routes that the startup airline launched in 2021. Levy stated on the time that Avelo had initially deliberate to launch within the East, however that rivals’ cuts in California unexpectedly opened a door for the service there.
The cuts come as Avelo faces a backlash over its resolution to function deportation flights from the U.S. for Immigration and Customs Enforcement. The transfer prompted critics to launch the “AvelNO” advert marketing campaign in Connecticut, the place the airline has a base.
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Avelo, nonetheless, was struggling earlier than the deportation flight outcry. Within the first quarter, the airline turned a virtually $14 million working loss, in response to latest knowledge from the U.S. Bureau of Transportation Statistics through aviation analytics agency Cirium. Common fares fell practically 20% even because the airline flew 21% extra flights.
The service’s West Coast retreat quantities to a virtually 10% schedule lower primarily based on second-quarter numbers, knowledge from Cirium reveals.
SLE, serving Oregon’s capital metropolis of Salem, might be left with no industrial air service following Avelo’s cuts. ACV will solely be served by United Airways, Cirium schedule knowledge reveals.
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