Avelo Airlines

Big-picture snapshot

Avelo Airlines is an ultra-low-cost carrier operating a fleet of approximately 16 Boeing 737-800 and 737-700 aircraft across 5 core bases after a major January 2026 restructuring that closed 3 bases, retired 6 aircraft, and cut 3,000+ flights. It is headquartered in Houston, Texas, and employs approximately 180 pilots with no pilot union. Andrew Levy serves as Founder, Chairman, and CEO.

For interview purposes, the simplest way to frame Avelo is this: it is a young ULCC founded by Andrew Levy (former President of Allegiant Air, former CFO of United Airlines) that launched in April 2021 as the first new U.S. airline in approximately 15 years. Avelo differentiates itself by operating from secondary airports (New Haven, Wilmington/ILG, Concord/Charlotte) to avoid congestion and TSA lines. The airline is in a significant transition: it underwent a major network and fleet restructuring in January 2026 — closing three bases, retiring six 737-700s, and cutting 29% of its Q2 schedule — while simultaneously having placed a firm order for 50 Embraer E195-E2 jets (plus 50 options) with deliveries starting mid-2027. Avelo was also involved in a controversial ICE deportation flight program that it ended in January 2026. Avelo's starting pilot pay is notable: $131/hour FO Year 1 and $240/hour Captain Year 1 — among the highest for a startup carrier.

Company history

• 1987 July 20: Predecessor company Casino Express Airlines established
• 1989: Casino Express began operations flying for Red Lion Hotel/Casino in Elko, Nevada (737-200s)
• 1994: Scheduled weekend flights Elko-Portland/Seattle on MD-80s
• ~2000s: Company became Xtra Airways (charter operator)
• 2018 August: Andrew Levy acquires Xtra Airways with intent to create ULCC
• 2020: Rebranded as Houston Air Holdings; raised $125 million; received first aircraft from GECAS
• 2021 April 8: Avelo Airlines name announced
• 2021 April 28: First scheduled flight (Burbank to Sonoma County) — first new U.S. airline in approximately 15 years
• 2022: Flight attendants voted to join AFA-CWA; East Coast expansion from New Haven
• 2023 October: Fifth pilot pay increase since launch
• 2024: EY Entrepreneur of the Year award for Andrew Levy; 46,000+ flights completed; international service launched (Dominican Republic, Mexico)
• 2025 April: Began ICE deportation charter flights as subcontractor of CSI Aviation
• 2025 September: Named "America's Most Reliable Airline"; announced order for 50 Embraer E195-E2 (plus 50 options)
• 2025: Flight dispatchers unionized (TWU); ICE program operated approximately 1,900 flights (May-December)
• 2026 January 7-27: Ended ICE flights; closed 3 bases (Mesa AZA, Raleigh-Durham RDU, Wilmington ILM); retired 6 Boeing 737-700s; fleet reduced from 22 to 16
• 2026: Major restructuring — 3,000+ flights cut in Q2 (29% reduction); focusing on 5 core bases; Dallas/McKinney base planned for late 2026

Business model

Avelo operates as an ultra-low-cost carrier with a secondary airport strategy:

• Secondary airports: Avelo deliberately operates from less congested airports (New Haven HVN, Wilmington/ILG, Concord/Charlotte USA, Lakeland LAL) where it can offer lower costs, faster boarding, and a streamlined passenger experience.
• ULCC model: Low base fares supplemented by ancillary revenue from bags, seat selection, and other add-ons.
• Boeing 737 fleet: All-737 operation provides fleet commonality and access to the deep 737 pilot and maintenance ecosystem.
• E195-E2 future: The order for 50 E195-E2s (plus 50 options, up to 100 total) signals Avelo's evolution from a used-737 operator to a new-build fleet — dramatically changing the airline's economics and capabilities starting mid-2027.
• Non-union pilots: Avelo is one of the few remaining U.S. carriers with a non-union pilot group.

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