The inaugural flight of an Avelo Airlines Boeing 737-800 takes off from Hollywood Burbank Airport in the Los Angeles area on April 28, 2021.
Patrick T. Fallon | AFP | Getty Images
Avelo Airlines will stop operating deportation flights on behalf of the U.S. government and will also eliminate its commercial routes and reduce its workforce, its chief executive told staff.
The airline, which debuted in 2021 with a focus on connecting small towns, last year dropped a slew of West Coast destinations and also shifted to air transporting deportees on behalf of U.S. Immigration and Customs Enforcement, sparking protests and backlash from some politicians.
“We moved part of our fleet into a government program that promised more financial stability but placed us at the center of political controversy,” CEO Andrew Levy said in an email to employees Tuesday evening, which was seen by CNBC.
“The program provided short-term benefits but ultimately did not generate enough consistent and predictable revenue to overcome its operational complexity and costs,” Levy wrote.
Avelo announced it would close its base in Mesa, Arizona, when ICE flights end. ICE did not immediately respond to a request for comment.
The airline also agreed to return six of its passengers Boeing 737-700 and announced it would close bases at Raleigh-Durham International Airport and Wilmington International Airport in North Carolina, while continuing to serve those cities.
These closures will result in job losses, Levy said.
“Some transfer opportunities will be available, but we will need to reduce the number of positions due to our smaller fleet and network,” Levy wrote.
The airline will instead focus on bases at Tweed New Haven Airport in Connecticut; Lakeland Linder International Airport in Florida, located between Tampa and Orlando; Wilmington Airport in Delaware; and Concord-Padgett Regional Airport, outside Charlotte, North Carolina. It will also open a base at McKinney National Airport near Dallas.
The union representing Avelo flight attendants applauded the end of ICE flights.
“The airline industry is constantly evolving, but we have faced far too many changes at our airline, including operating some flights that we did not initially sign up for,” the Association of Flight Attendants-CWA, the flight attendants’ union, said in a statement to its members. “We hope that with the end of ICE flights and new funding, the future will be more stable for Avelo flight attendants.”
Avelo said the short-term schedule changes “will impact many customer itineraries” and said it would contact affected travelers via text and email.
Levy told staff that the carrier raised “a substantial amount of new capital” at the end of the year and that the carrier’s financial position “has never been stronger.”