Avelo Airlines axes 10 cities as it abandons the West Coast

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Beleaguered Avelo Airlines will close its West Coast operation and exit 10 cities by December as it struggles financially.

Citing the "current operating environment," Avelo CEO Andrew Levy has notified staff members and customers that it will significantly shrink operations at its Hollywood Burbank Airport (BUR) base by Aug. 12, and exit the market entirely by 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," he wrote in a letter viewed by TPG. "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."

More: Startup airline Avelo was going to launch in the East, but it went West to capitalize on rivals' cuts in California

Below are details of Avelo's market exits:

• Salem-Willamette Valley Airport (SLE) in Oregon on Aug. 10
• Charles M. Schulz-Sonoma County Airport (STS) near Santa Rosa, California, and Harry Reid International Airport (LAS) in Las Vegas on Aug. 11
• Glacier Park International 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) near Eureka, California; Tri-Cities Airport (PSC) near Pasco, Washington; and Rogue Valley International-Medford Airport (MFR) in Oregon on Dec. 2

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Burbank was Avelo's first airport, home to a number of routes that the startup airline launched in 2021. Levy said at the time that Avelo had originally planned to launch in the East, but that rivals' cuts in California unexpectedly opened a door for the carrier there.

The cuts come as Avelo faces a backlash over its decision to operate deportation flights from the U.S. for Immigration and Customs Enforcement. The move prompted critics to launch the "AvelNO" ad campaign in Connecticut, where the airline has a base.

Budget battleground: America's third-smallest state is home to the hottest airline turf battle

Avelo, however, was struggling before the deportation flight outcry. In the first quarter, the airline turned a nearly $14 million operating loss, according to recent data from the U.S. Bureau of Transportation Statistics via aviation analytics firm Cirium. Average fares fell nearly 20% even as the airline flew 21% more flights.

The carrier's West Coast retreat amounts to a nearly 10% schedule cut based on second-quarter numbers, data from Cirium shows.

SLE, serving Oregon's capital city of Salem, will be left with no commercial air service following Avelo's cuts. ACV will only be served by United Airlines, Cirium schedule data shows.

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