Avelo Airlines Seeks Up to $100M in New Funding

Avelo Airlines has engaged U.S. investment bank Jefferies Group LLC to assist in raising up to USD100 million in new funding, according to a report by The Airline Observer. The funds would be used to support both expansion and financial restructuring, including reducing the carrier’s existing debt.

Sources say the capital raise could be structured in two tranches, with the first focusing on short-term liquidity needs and the second targeting between USD75 million and USD100 million. CEO Andrew Levy confirmed that the capital would not only fuel growth but also improve the airline’s balance sheet.

According to U.S. Department of Transportation (DOT) data, Avelo reported a modest net profit of USD2.3 million in the first half of 2024 but carries a total debt of USD45 million. The airline’s passenger load factor stood at 73.7%, the second lowest among 12 national system carriers, just above Silver Airways, which posted a 51.9% load factor and is currently undergoing Chapter 11 bankruptcy proceedings.

Avelo has recently expanded beyond domestic operations, launching international services in late 2024. In April 2025, the airline signed a deal with the U.S. Department of Homeland Security to operate deportation flights, further diversifying its business model.

The airline has not yet commented on the funding initiative. However, the move reflects Avelo’s intent to solidify its position in the low-cost carrier segment while addressing financial vulnerabilities as it scales operations.

Related News: https://airguide.info/category/air-travel-business/airline-finance/

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