What Avelo Airlines does

Avelo Airlines is a Houston-based ultra-low-cost carrier founded by Andrew Levy in April 2021, operating as the first new scheduled commercial airline launched in the United States in nearly 15 years. The carrier targets budget-conscious leisure travelers and consumers in smaller markets, flying nonstop only to and from secondary airports such as Tweed-New Haven (HVN), Wilmington (ILG), Concord-Padgett (USA), Lakeland (LAL), and McKinney National (DTX), avoiding congested hub airports and connections. By its fifth anniversary in April 2026, Avelo had served over 9.3 million customers on 74,000+ flights across 34 destinations in 12 states plus Puerto Rico, Jamaica, Mexico, and the Dominican Republic, and was ranked #2 in U.S. on-time performance for full-year 2025 by DOT/Anuvu with a 0.13% cancellation rate and a 51 NPS.

Avelo's operating technology is built on a fleet of 15 Boeing Next-Generation 737 aircraft (one 737-700 plus fourteen 737-800s) equipped with Vortex Control Technology finlets for fuel-burn reduction, and the carrier has committed to become the first U.S. operator of the Embraer E195-E2 with a firm order for 50 plus 50 purchase rights, deliveries running 2028-2032. Ancillary product features include Stretch and Stretch+ extra-leg-room seating (covering roughly one-third of seats), free family seating for children 14 and under, and an automated "Disruption Assistance" rebooking benefit powered by HTS (Hopper Technology Solutions) that handles delays of two-plus hours and cancellations across any airline. Revenue is generated through ultra-low base fares (starting at $19-$99), a heavy ancillary fee stack (bags, seat assignments, priority boarding), a $59/$99 annual Avelo PLUS subscription, the Avelo World Elite Mastercard ($99 annual fee, launched January 2026 with Cardless and First Electronic Bank), and ancillary integrations with Cartrawler (rental cars) and, per the company's roadmap, future hotel partnerships targeted for the first half of 2027.

The go-to-market motion is direct-to-consumer via AveloAir.com and the Avelo mobile app, supported by email/promo-code marketing, social media across Facebook/Instagram/TikTok/YouTube/LinkedIn/X, public relations around route inaugurations and customer milestones, and airport ticket counters. Avelo holds no public listing; its largest institutional shareholder is Morgan Stanley Tactical Value following a $30M investment in the January 2022 Series B, total invested capital exceeds $160M, and additional capital was raised in an undisclosed Series C in September 2025. The company is in an active operational restructuring: it ended its DHS charter deportation contract in January 2026, removed six 737-700s from the fleet (four of which were sold to Daedalus Aviation Corp.), closed bases in Mesa (AZ), Raleigh-Durham (NC), and Wilmington (NC), and is pivoting toward East Coast and Texas operations ahead of a major fleet transition to the E195-E2.

Name

Avelo Airlines

Legal name

Avelo Airlines Inc.

Website

https://aveloair.com

Company type

Private

Founded year

2021

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

Avelo Airlines is a Houston-based ultra-low-cost carrier operating nonstop flights from smaller U.S. secondary airports to leisure destinations, serving budget-conscious travelers with a current fleet of 15 Boeing 737s and a forthcoming Embraer E195-E2 order.

Ownership category

akta.pro rank

Product category

Ultra-Low-Cost Passenger Air Transportation

NAICS

Scheduled Passenger Air Transportation (481111), Scheduled Air Transportation (48111)

SIC

Air Transportation, Scheduled (4512)

akta.pro primary industry

Ultra-Low-Cost Carriers (ULCC) (THABABAA)

akta.pro secondary industry

Low-Cost Regional/Short-Haul Carriers (THABABAF)

Keywords

• Low-cost passenger flights
• Nonstop domestic air travel
• Regional airport airline service
• Ancillary fee air travel
• Scheduled passenger transportation

Headquarters

HQ city

Houston

HQ country

United States

HQ region

North America

Offices5 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Operations, Personnel, Infrastructure, Supply Chain, Marketing or Sales, Technology or R&D

Revenue model

1. Passenger Ticket Sales: Core revenue from ultra-low base fares for passenger transportation
2. Ancillary Fees: Fees for checked bags, carry-on bags, assigned seats, and other optional services
3. Charter Flights: Charter contract flights including ICE deportation flights (ended January 2026)
4. Subscription Membership (Avelo PLUS): Annual membership program offering exclusive low fares, free priority boarding, and other perks for $59 first year, $99 thereafter
5. Travel Insurance and Add-ons: Travel insurance products and disruption assistance services
6. Future Car/Hotel Partnerships: Planned rental car and hotel partnerships for ancillary revenue expansion targeted for first half of 2027

Pricing tiers

Go-to-market motion2 records

Distribution channels3 records

Marketing channels7 records

Core offering

Avelo Airlines is an ultra-low-cost scheduled passenger carrier that sells affordable, nonstop air travel primarily between underserved smaller airports across the United States. Tickets are booked directly through its website and mobile app using everyday low base fares, with ancillary fees for checked/carry-on bags, seat assignments, priority boarding, and other optional services. Recurring revenue is layered through the Avelo PLUS subscription membership and a co-branded Avelo Airlines World Elite Mastercard.

Differentiator

Problem solved

Functional benefit

Brands

• Avelo PLUS: Membership program offering exclusive low fares, FREE priority boarding, and other benefits for $59 first year and $99 thereafter.

Products and services

• Ultra-Low-Cost Passenger Air Transportation Scheduled, nonstop passenger air travel between underserved smaller airports across the United States and select international destinations (Puerto Rico, Jamaica, Mexico, Dominican Republic), sold with everyday low base fares and ancillary fees for optional services. Targeted at budget-conscious leisure travelers and passengers based near regional airports.
• Avelo PLUS Membership Annual subscription membership for individual travelers that unlocks exclusive low fares, free priority boarding, and other perks; $59 first year and $99/year on automatic renewal thereafter. For repeat Avelo flyers seeking lower effective ticket costs and boarding benefits.
• Avelo Airlines World Elite Mastercard Co-branded travel credit card (Mastercard World Elite, $99 annual fee) with First Electronic Bank and Cardless that earns 5% back in Avelo Cash on Avelo purchases and 2% back on all other spending, plus free carry-on bag, free standard seat assignment, and free priority boarding for cardholder reservations.
• Stretch and Stretch+ Seating Options Premium extra-legroom seat products (Stretch and Stretch+) covering roughly one third of cabin seats on Avelo flights, sold as a unit-priced add-on for travelers who value additional personal space.
• Disruption Assistance Self-serve rebooking protection for Avelo customers whose itinerary is cancelled or delayed two-plus hours, enabling them to rebook onto any airline or claim a full refund while keeping their original ticket value. Targets leisure and family travelers who want guaranteed recovery from irregular operations.

Quantifiable outcome

• Ranked #2 for full year 2025 on-time performance among U.S. airlines
• +3 more outcomes

Named customers3 records

Segments3 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration7 records

Feature3 records

Partnerships

Four partnerships are on record, tiered minor and core.

• US Aviation AcademyminorStrategic or Co-development Partner · 9 November 2025Preferred Hiring Pathway Program in Denton, Texas for pilots, mechanics, and dispatchers with direct access to Avelo's recruitment pipeline
• ExxonMobilminorOthersExclusive lubricants supplier for Avelo Airlines fleet operations
• EmbraercoreTechnology or IntegrationAircraft manufacturer for up to 100 Embraer E195-E2 aircraft (50 firm orders plus 50 purchase rights), valued at $4.4 billion at list prices with deliveries from 2028
• McKinney National AirportcoreOthersFive-year agreement to operate from McKinney National Airport as inaugural airline partner, investing in $79 million commercial terminal project

Scale indicators15 records

Recent moves10 records

Expansion highlights6 records

Direct peers

• Spirit Airlines: Spirit is the largest U.S. ultra-low-cost carrier, competing head-to-head with Avelo on fare-led domestic leisure routes and ancillary revenue. Both target budget-conscious travelers and use an unbundled pricing model, making Spirit the most direct comparable on the ULCC cost structure and customer experience.
• Frontier Airlines: Frontier is a major U.S. ULCC with a similar ancillary-driven model and A320 family fleet, serving many of the same leisure and secondary-airport markets Avelo targets. Both compete on price for leisure travelers in markets like Florida and the Caribbean.
• Allegiant Air: Allegiant pioneered the ULCC-with-secondary-airports model that Avelo mirrors, focusing on nonstop service from small/medium airports to leisure destinations. Its bundled hotel/car packages and Avelo's planned affiliate partnerships follow a directly parallel playbook.

Emerging players

• Breeze Airways: Breeze is a newer U.S. carrier founded in 2018 by David Neeleman that also targets underserved secondary airports with nonstop point-to-point service, overlapping Avelo's network strategy. Both compete for passengers bypassing major hubs and rely on Embraer aircraft.
• Sun Country Airlines: Sun Country is a Minneapolis-based low-cost carrier that serves many of the same secondary-airport leisure markets (Florida, Caribbean) and operates a young 737 fleet. It is smaller and more niche than Avelo but addresses a comparable leisure customer.
• Porter Airlines: Porter is a Canadian regional/ULCC hybrid operating Embraer E195-E2 aircraft from secondary airports like Toronto Billy Bishop — making it a relevant strategic peer for Avelo's upcoming E2 transition and its secondary-airport, business-leisure dual focus.
• Boutique Air: Boutique Air operates scheduled and charter passenger service from small/underserved regional airports in the U.S., mirroring Avelo's strategy of using secondary airports but using much smaller PC-12 aircraft. Relevant for benchmarking the secondary-airport demand model.

Broad incumbents

• JetBlue Airways: JetBlue is a low-cost/legacy hybrid carrier with strong presence at secondary Northeast airports like New Haven-adjacent Hartford, where Avelo also operates. Its Even More Space seating and Mint product overlap with Avelo's Stretch and Stretch+ offerings.
• Southwest Airlines: Southwest is the largest U.S. low-cost carrier, offering point-to-point service to many leisure destinations Avelo targets. Its rapid rewards loyalty and bundled "Bags Fly Free" offering compete directly with Avelo PLUS and included carry-on benefits.

Regional players

• Via Airways: Via Air (formerly Bahamas Air operator) is a small U.S. ULCC that also serves smaller airports and leisure routes in the Florida/Caribbean corridor, though at a much smaller scale than Avelo. It is a comparable niche operator rather than a direct large-scale competitor.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks5 records

Key highlights6 records

Customer concentration

• Xx.com/aveloair
• YouTubeyoutube.com/@AveloAirlines_ULCC
• Facebookfacebook.com/aveloair
• LinkedInlinkedin.com/company/avelo-airlines
• Instagraminstagram.com/aveloair
• TikToktiktok.com/@aveloair

Revenue estimate

Valuation estimate

Number of profiles

Profiles4 records

Funding overview

Funding rounds3 records

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Avelo Airlines