Avelo Airlines announced it will discontinue its participation in the Department of Homeland Security (DHS) charter program, which involved operating deportation flights. The change is effective January 27, 2024, and includes the closure of Avelo's base in Mesa, Arizona (AZA).
The airline cited the program's operational complexity and associated costs, along with a lack of consistent and predictable revenue, as reasons for the decision. Avelo's involvement in DHS charter flights began in May of the previous year from Arizona, a decision that led to public criticism and protests, particularly in New Haven, Connecticut. Avelo CEO Andrew Levy had previously stated that the DHS contract was financially necessary for the airline's operations.
Avelo's Strategic Adjustments and Network Focus
Avelo Airlines has undergone recapitalization, resulting in a strong cash position relative to its size within the U.S. airline industry. The company plans to leverage this financial strength to execute a long-term strategy, with a focus on developing its key base at Tweed-New Haven Airport (HVN) in Connecticut.
Avelo will maintain a six-aircraft base at Tweed-New Haven, without significant alterations to its existing network or employment levels at the airport.
Operational Restructuring
The airline is streamlining its national network to concentrate on four core locations:
- New Haven, Connecticut (HVN)
- Milwaukee, Wisconsin (ILG)
- Charlotte, North Carolina (USA)
- Lakeland, Florida (LAL)
Additionally, Avelo plans to establish a new base at McKinney, Texas (TKI) in late 2026. Concurrently, the airline will close its bases in Mesa, Arizona (AZA), Raleigh-Durham, North Carolina (RDU), and Wilmington, North Carolina (ILM).
Fleet and Schedule Modifications
Near-term schedule adjustments are anticipated, which will impact various customer itineraries. Avelo states that affected customers will be notified directly via email and text.
The airline is also modifying its fleet by phasing out six Boeing Next-Generation 737-700 aircraft. This strategy aims to focus primarily on operating its more efficient Boeing Next-Generation 737-800 aircraft. These adjustments are intended to facilitate the sustainable scaling of its five core bases by 2026 and prepare the company for future expansion, supported by a recent order for up to 100 Embraer 195-E2 aircraft.
Tweed-New Haven Airport Operations
Tweed-New Haven Airport (HVN) serves as Avelo's largest base, employing nearly 300 crewmembers. It offers direct service to 24 destinations, including:
- Atlanta, Ga. (ATL)
- Charleston, S.C. (CHS)
- Charlotte / Concord, N.C. (USA)
- Chicago, Ill. (ORD)
- Dallas-Fort Worth, Texas (DFW)
- Daytona Beach, Fla. (DAB)
- Fort Lauderdale, Fla. (FLL)
- Fort Myers, Fla. (RSW)
- Greenville / Spartanburg, S.C. (GSP)
- Houston, Texas (Hobby) (HOU)
- Jacksonville, Fla. (JAX)
- Key West, Fla. (EYW)
- Lakeland / Orlando, Fla. (LAL)
- Myrtle Beach, S.C. (MYR)
- Nashville, Tenn. (BNA)
- Orlando, Fla. (MCO)
- Raleigh / Durham, N.C. (RDU)
- San Juan, Puerto Rico (SJU)
- Sarasota / Bradenton, Fla. (SRQ)
- Savannah, Ga. / Hilton Head, S.C. (SAV)
- Tampa, Fla. (TPA)
- Washington, D.C./Baltimore, Md. (BWI)
- West Palm Beach, Fla. (PBI)
- Wilmington, N.C. (ILM)
Since commencing flights from HVN in November 2021, Avelo has transported over four million customers on more than 30,000 flights.
Airport Expansion Context
Tweed New Haven Airport is currently advancing plans for a runway extension and the construction of a new, larger terminal on the East Haven side of the property. This expansion aims to attract additional commercial airfare. Avelo and Breeze are the only two commercial carriers currently operating from Tweed. Opponents of the airport's expansion have raised concerns regarding potential increases in flooding, air pollution, noise, and traffic.