Latest news with #AndrewLevy
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Travel + Leisure
2 days ago
- Business
- Travel + Leisure
This Budget Airline Is Ending All Flights From the Los Angeles Area
It's the end of an era for a popular low-cost airline. Avelo Airlines will close its base at the Hollywood Burbank Airport (BUR) and end operations in the Los Angeles area, the carrier recently confirmed to Travel + Leisure. Operations will begin to slow down starting Aug. 12 when the airline will reduce to just one aircraft in the market, before completely ending service in Burbank on Dec. 2. 'We believe the continuation of service from BUR in the current operating environment will not deliver adequate financial returns in a highly competitive backdrop,' Avelo Airlines CEO Andrew Levy said in a statement shared with T+L. Prior to this, Avelo had been operating regular flights from Burbank to Sonoma, California, and Eureka, California, the Pasco area in Washington state, and to Oregon (Bend, Eugene, Portland, and Medford), as well as operating seasonal flights to Kalispell, Montana, according to the carrier's route map. Avelo first launched in 2021 with its inaugural flight scheduled out of Burbank. The airline said its plan is to re-base its aircraft to other priority markets, including strengthening its growing East Coast presence. Passengers who have future flights booked on Avelo from Burbank will need to visit the airline's website and cancel their reservations to receive a refund, according to the airline. Located just over 20 miles north of the larger Los Angeles International Airport (LAX), Burbank is often viewed as an easier travel option due to the lower frequency of flights and fewer passengers. In 2024, more than 6.55 million passengers passed through Burbank airport, according to airport data, marking a record high and an 8.5 percent increase from 2023. (For comparison, more than 76 million passengers arrived and departed from LAX last year, according to Los Angeles World Airports.) The Burbank airport is popular among other low-cost carriers, including Southwest Airlines, which operates flights from there to Dallas, Denver, Las Vegas, Phoenix, and other destinations. Additional major air carriers also operate from the airport, including United Airlines (which offers direct service to Denver and San Francisco), and Delta Air Lines (which operates routes to Atlanta and Salt Lake City), among others. Overall, Avelo currently operates a fleet of 21 Boeing Next-Generation 737 aircraft and flies to more than 50 destinations, including to Jamaica, Mexico, and the Dominican Republic. Beyond Burbank, the airline has bases in six other airports: Connecticut's Tweed-New Haven Airport (HVN), Delaware's Wilmington Airport (ILG), Raleigh-Durham International Airport (RDU), Florida's Lakeland International Airport (LAL), Charlotte's Concord-Padgett Regional Airport (USA), and North Carolina's Wilmington International Airport (ILM).
Forbes
3 days ago
- Business
- Forbes
Fast-Growing Avelo Airlines Cancels Its West Coast Service
Avelo Airlines takes off with first flight between Burbank and Santa Rosa at Hollywood Burbank ... More Airport on April 28, 2021 in Burbank, California. (Photo byfor Avelo Air) Avelo Airlines appears to be in trouble. The four-year-old domestic low-fare airline this week announced it is closing its West Coast base at Burbank Airport (BUR) and will soon be shutting down its West Coast services. It gives me no pleasure to write these words, as I was literally there at the beginning. In April 2021, I was a passenger on Avelo Flight 101, from Burbank to Charles M. Schulz–Sonoma County Airport (STS) in Sonoma, California. The crowd loved the first flight to California wine company, and the enthusiasm from the pilots, flight attendants, employees and Avelo's founder and CEO Andrew Levy, who was onboard. The start-up was the first new airline in the United States in 15 years. Avelo began with three used Boeing 737-800 aircraft; today it has 21. Until now, Avelo's startup story was inspirational. That first flight on April 28, 2021, was deep within the COVID-19 pandemic that pounded the airline industry. To launch the new carrier, Avelo employees worked remotely from Florida, Texas, California, New York, and other locations via Microsoft Teams. Many did have years of airline experience, like CEO Andrew Levy, co-founder and former president of low-cost carrier Allegiant Airlines, and former chief financial officer of United. But many others were new to the airline industry. To train dozens of new flight attendants in safety and other critical on-board skills, Avelo created NBA-like COVID-free 'bubbles' so each new class could be quarantined together. Avelo Airlines takes off with first flight between Burbank and Santa Rosa at Hollywood Burbank ... More Airport on April 28, 2021 in Burbank, California. (Photo byfor Avelo Air) Why launch during a pandemic? At the time, CEO Levy said, 'Demand is coming back quickly.' And according to a July 9, 2025, Avelo press release, 'Avelo has flown more than 7.4 million Customers on nearly 60,000 flights. Today Avelo serves 53 cities spanning 21 states and Puerto Rico, as well as three international destinations: Jamaica, Mexico and the Dominican Republic.' Avelo recently announced it is extending its East Coast flight schedule through mid-February 2026, with one way-fares starting at $37. But this week CEO Levy announced, 'Avelo is closing its base at Hollywood Burbank Airport (BUR) later this year. On August 12, 2025, we will reduce our BUR operation to one aircraft before exiting the remaining aircraft on December 2, 2025, and closing the base. 'This was not an easy decision. Our company's deepest operational roots are in BUR, having launched our first flight there over four years ago during the COVID pandemic. There is rarely one singular reason why decisions like this are made, and this one is no different. We believe the continuation of service from BUR in the current operating environment will not deliver adequate financial returns in a highly competitive backdrop. We intend to redeploy these BUR aircraft to business areas where we see more efficient longer-term growth prospects, while also building depth and breadth to our East Coast operation.' Andrew Levy, chairman and chief executive officer of Avelo Airlines, waves as he boards the ... More inaugural flight of Avelo Airlines from Hollywood Burbank Airport (BUR) to Charles M. Schulz-Sonoma County Airport in Santa Rosa (STS) on April 28, 2021 in Burbank, California. - Avelo Airlines begins low-cost carrier service with a fleet of Boeing Co. 737 aircraft as leisure travel resumes after the Covid-19 pandemic stunned the global airline industry. (Photo by PATRICK T. FALLON/AFP via Getty Images) Levy, who was not available for an interview, concluded, 'We appreciate our Crewmembers in California for their hard work and dedication, and all will be given the opportunity to transfer to another Avelo base. We are deeply grateful for the support from the local community and from our business partners. Customers who have flights booked can visit the Manage Trips section of our website to cancel their flight and receive a refund.' Avelo added 17% additional capacity in 2025. Unfortunately, in 2025 domestic leisure air travel demand has dropped, with fares cut, flights cut, and now airlines like Avelo cutting service. As David Neeleman, CEO of competitive low-cost carrier Breeze Airways, said in March "Your first needs are food and shelter. And then we're a little bit down the list of expenditures. If you don't have a job, you're not going to go buy an airline ticket." Credit and debit card spending on airline purchases fell 7.2% in February 2025, while the stocks of many publicly traded US airlines (Avelo is private) fell. American Airlines is down 29%, UAL is down 9%, and Delta is down 8%. Still, such well-established carriers have significant cash reserves and can even go to the bond market to raise money. But according to Cranky Flier Avelo Airlines had just $23 million in cash and short-term investments at the end of 2024. As the publication noted, 'With demand tanking, you have to be very concerned about the future of your business if you're running Avelo.' Avelo's financial problems led to what proved a controversial move by the airline. It accepted government contracts with ICE to fly deportation flights for undocumented migrants. Student Camila Torres joins with well over 150 other residents to protest Avelo Airlines at Tweed ... More New Haven Regional Airport in New Haven, Conn., on Friday April 17, 2025. Avelo is contracted with ICE to carry out Trump Administration deportation flights. (Christian Abraham/Connecticut Post via Getty Images) The backlash against the flights, which began out of Mesa, Arizona, in May, was fierce. More than 19,000 people in Connecticut signed a petition pledging not to fly Avelo, while local officials threatened to revoke financial incentives provided to the airline. A New Hampshire state representative raised money to put up billboards reading 'Does your vacation support their deportation?' which devolved into a court battle. Even the New York Times attacked the beleagured airline for 'aiding Trump's deportation campaign,' helpfully pointing out that Avelo serves 'liberal cities on the coasts.' Has the low-cost airline built enough good will with its low-cost flight to popular destinations to survive these financial and reputational reverses? As a paying customer on flights to wine country, I will certainly miss Avelo's on-time service out of Burbank. But refocusing on the denser Eastern seaboard routes, including its popular Florida flights, may be enough to keep this low-cost contender going. Orlando, Florida USA Avelo Airlines, Boeing 737-800 aircraft, taxiing to the gate, after arriving ... More from Wilmington, Delaware.
The Independent
3 days ago
- Business
- The Independent
Budget airline that took ICE deportation flight contract shuts down West Coast operations
A budget airline that contracted with ICE to launch deportation flights has shut down its West Coast operations, citing financial difficulties. Avelo Airlines, which sparked controversy and boycotts of its service earlier this year over the agreement, will end flights in California, Oregon, Washington and Montana, with some services stopping as soon as August. 'Avelo Airlines will be ending service from several West Coast airports next month and later this year,' CEO Andrew Levy said in a statement, shared with various outlets. 'This includes our original base at Hollywood Burbank Airport (BUR).' Some flights will end starting from August 10, with others, including those to Eugene, Oregon, and Burbank, California, ending at the beginning of December. Levy added that the company plans to focus on its East Coast operations. 'There is rarely one singular reason why decisions like this are made, and this one is no different,' he said. 'We believe the continuation of service from [Burbank] in the current operating environment will not deliver adequate financial returns in a highly competitive backdrop.' The Independent has reached out to the airline for more information about the affected routes. Avelo received backlash in May after it launched federal deportation flights from Arizona, with three Boeing 737 -800s being chartered for deportation flights from Mesa Gateway Airport near Phoenix. At the time, the move drew sharp criticism, including from the union representing its flight attendants, and sparked an online petition calling for a boycott of the airline. 'We realize this is a sensitive and complicated topic," Levy said in a statement at the time. Avelo was launched in 2021 during the COVID-19 pandemic, following a rebrand – having previously operated as Casino Express Airlines. The airline generally operates older, more affordable Boeing 737 jets and utilizes less congested, cost-effective secondary airports. The airline focuses on routes overlooked by larger carriers and reported its first profitable quarter in late 2023.
Time Out
3 days ago
- Business
- Time Out
One of California's go-to budget airlines is ceasing its West Coast operations
California's skies are about to get a little less budget-friendly. Avelo Airlines, the ultra-low-cost carrier that made Hollywood Burbank Airport its West Coast home base, has announced it's packing up and pulling out—completely. On Monday, Avelo confirmed it will cease all West Coast operations by Dec. 2, 2025, ending a four-year run that made the airline a favorite for no-frills fliers hopping between SoCal, NorCal, Oregon and beyond. Once heralded as a post-pandemic disruptor, Avelo's California debut was bold, launching amid COVID-era uncertainty in 2021 with cut-rate fares and routes to underserved airports. At its peak, Burbank was Avelo's crown jewel, accounting for nearly a third of the airline's passengers. It even flew its one-millionth guest out of BUR in 2023. But as competition tightened and operational costs rose, the airline's West Coast strategy no longer made sense, said CEO Andrew Levy. 'We believe the continuation of service from [Hollywood Burbank Airport] in the current operating environment will not deliver adequate financial returns in a highly competitive backdrop,' Levy told KTLA, noting that Avelo will instead focus on 'more efficient longer-term growth' back East. The drawdown begins immediately: Burbank will go from a mini-fleet to a solo aircraft by mid-August before disappearing from Avelo's map entirely this winter. The airline's California-based employees have been offered the chance to relocate to one of Avelo's eight other bases, including Hartford, Charlotte and Wilmington (Delaware, not North Carolina), all firmly planted east of the Mississippi. Passengers with upcoming bookings can cancel online for a refund. Though some observers have linked the West Coast retreat to recent backlash over Avelo's controversial ICE deportation charter program (operated out of Arizona, not California), the airline insists the decision was purely financial. Still, the news will sting for budget-minded travelers who once praised Avelo for bringing back some of the simplicity—and affordability—of flying short-haul in California.
Daily Mail
3 days ago
- Business
- Daily Mail
Budget airline abandons California market in East Coast growth push
Californians will soon have one less flight option. Avelo Airlines, the Texas-based budget carrier known for its sub-$30 fares and West Coast roots, is pulling out of California. Its decision comes amid mounting backlash over its cooperation with the Department of Homeland Security and increasing business pressure in the region. The company announced Monday that it will shutter its base at Hollywood Burbank Airport and shift focus to its 38 other destinations, largely concentrated on the East Coast. 'We are in the planning phases of relocating the three planes to the East Coast, so [these are] only positive outcomes for our East Coast airports,' Avelo added. Before the decision, Avelo flew into 10 cities on the West Coast. Budget fliers could connect to destinations spanning the region — including Los Angeles, Las Vegas, Portland, and Kalispell, Montana. Those services will end by December 2, 2025. It's a major retreat from the first airport the company ever served. Avelo's inaugural flight departed Burbank and flew to Northern California in 2021. 'This was not an easy decision,' the company's top boss, Andrew Levy, said in a statement. 'Our company's deepest operational roots are in BUR, having launched our first flight there over four years ago during the Covid pandemic. ' But the company said those roots weren't deep enough to weather the region's competitive pressures. The spokesperson said executives made an 'investment of significant time, resources, and efforts' to make the West Coast routes work, but the venture did not produce 'the results necessary to continue our presence there.' Avelo plans to redeploy its California aircraft to the East Coast, where it sees 'more efficient longer-term growth prospects,' Levy said. The airliner signed a contract with the US Department of Homeland Security in April to transport migrants to detention centers inside and outside the US. It maintains that protests had no influence on the decision to leave California. 'Protests nor our contract with DHS had any effect on our decision and have not impacted our business,' a spokesperson for the company told Opposition has cropped up across the country — from outside Burbank Airport to the company's hub in New Haven, Connecticut — with demonstrators urging Avelo to end its partnership with DHS. Nancy Klein, a California-native, told Reuters she had organized seven protests against the company. She believes the company's decision to end their service at the airport is partially due their calls to boycott the airline. 'This change in Avelo's business operations is some evidence that being on the right side of history, while being principled and persistent, can make a difference,' she said in a statement. Klein said she is planning the next protest against the carrier at Burbank Airport on July 27.
