Avelo Airlines Secures New Funding for Expansion

Avelo Airlines has secured a new round of financing from a new partner, marking the largest single investment since its initial Series A funding. While the amount was not disclosed, the carrier said the fresh capital will bolster its liquidity and support continued expansion across the United States and the Caribbean.

Founded in 2021, Avelo raised about USD125 million in Series A funding in January 2020 and an additional USD42 million in Series B funding in January 2022. Earlier this year, reports indicated the airline was seeking around USD100 million to fund growth. The latest investment arrives as the carrier faces public scrutiny over operating some deportation flights for the U.S. Department of Homeland Security.

“This new capital strengthens our liquidity position,” said Avelo founder and CEO Andrew Levy. “It comes at a pivotal time in the domestic airline industry and will allow Avelo to double down on an addressable market too often priced out by higher fare airlines.” Levy added the proceeds will be used to expand scheduled services, invest in technology and enhance the customer experience.

According to ch-aviation data, Avelo’s fleet currently includes 14 Boeing 737-800s and eight Boeing 737-700s. The airline operates from bases including Burbank, New Haven, Wilmington and Orlando, focusing on underserved routes and secondary airports.

Industry observers say the new funding underscores investor confidence in Avelo’s low-cost model and positions the carrier to accelerate its network growth while improving operational efficiency and customer service.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com