Friday, July 18, 2025

Low-cost carrier Avelo Airlines is discontinuing all of its West Coast service by Dec. 2, 2025. The change is a major strategic turnaround for the carrier, which began operating its first flights from Burbank Airport earlier this year. The company says the move is due in large part to fierce competition, while an unsustainable cost grind has rendered its West Coast network unsustainable.

For Avelo, it’s not just a route shift. It represents a deliberate turn in strategy — from growth to profitable sustainability. The airline will now concentrate its efforts on its six East Coast bases, where it believes it has a better shot of earning sustainable returns.

The first base for Avelo has been the one at Burbank Airport in the Los Angeles metro region, and one that is perhaps fittingly emblematic of its lift off. Launched in April 2021, the airline promised a game-changing disruption of the short-haul air market. It sought to provide significantly discounted fares and focus on underserved routes that the old-line airlines had for years ignored.

Avelo achieved a monthly high of 190 departures by July 2024, serving as many as 14 destinations from Burbank. These were a mix of regional and mid-distance flights marketed at those on a budget looking for alternatives to the major airline hubs.

But as of mid-2025, the power had dwindled to just eight active destinations, as the empire quietly withdrew from an increasing set of problems. The others as of July 2025 were:

Avelo also kept a Las Vegas to Santa Rosa route, using planes that were based in Burbank.

The airline said it had spent a lot of time, effort and money on developing its west coast network. But as the company now concedes, the financial results were less than exciting.

The operational environment on the West Coast had become “onerous” and did not produce the financial return necessary to keep the airline profitable, Avelo said in a recent statement. Executives told investors they had overestimated demand in the market and underestimated operating costs including airport fees, salaries and competitive forces.

This, the airline stressed, comes as part of an “ongoing objective” to maximise performance and move the business into “sustainable profitability”.

Here’s how the airline has outlined the gradual shutdown of its Burbank base, which started with schedule cutbacks and will conclude with the base shutting down completely:

Now with the West Coast draw down, Avelo Airlines will focus in full on the operations that originate from its six East Coast bases. These hubs are economically more compelling, with average returns that are higher, lower competition and higher passenger demand, the airline has claimed.

Avelo’s is currently located in . The airline also maintains operations in the following :

This geographic focus will enable Avelo to simplify the operation, minimize fixed costs and optimize aircraft utilization throughout its network. In particular, the airline is interested in underserved East Coast airports with no low-cost competition that it can develop long term.

Burbank marks the first departure for Avelo here, which is a loss for West Coast travelers who no longer have direct access to Avelo’s ultra-low-cost fares. For others, particularly in smaller or less-connected cities, it could mean fewer travel options — or more expensive tickets — as competition dries up.

Customers who have booked flights beyond the dates of closure will be contacted directly by the airline. They will receive refunds or be given rebooking options as per Avelo’s customer policies.

The Burbank closure also has implications for the lives of Avelo workers, contractors and the ecosystem of businesses left scrambling in Avelo’s absence, though specifics on workforce impact were not provided at press time.

Avelo’s withdrawal from the West Coast is shaping up as a cautionary tale, analysts say. The carrier walked into a market dominated by heavyweights such as Southwest, Delta and United — all of which have built up brand recognition, loyalty programs and extensive operational muscles.

Margins were also squeezed by increasing operational costs such as fuel prices, and airport charges, as well as shortages of staff. The COVID-19 crisis has further changed the way people travel, reducing predictability in short-haul regional flying.

Unlike its East Coast destinations, many of Avelo’s West Coast destinations never made it to the essential load factor required to cover its costs. There were lower barriers to profitability on the East Coast, with its less congested secondary airports, while the Midwest, where the airline had fewer flights, and the West Coast had higher ones, he said.

Industry observers say that Avelo’s new focus on the East Coast could provide more of a long-term path. Markets such as New Haven are already proving to have sufficient demand from passengers, and other markets, whose airports are under-served, could also be potential strongholds.

With its pared-back footprint, Avelo aims to take advantage of underserved markets, lower fixed expenses and less complex route development. Analysts say it could help transition the new startup to a higher profit per aircraft and a more efficient business model.

Avelo’s departure from Burbank is not just a withdrawal — it is a shift in strategy. The airline now seems to be moving away from a flier-are-better mentality and concentrating instead on operational robustness and financial stability.

This change says a lot about the big picture in the ultra-low-cost carrier (ULCC) space. Citing economic headwinds and changing consumer desires, ULCCs increasingly looking to establish a permanent home in a market rather than blanketing the map.

That translates into West Coast passengers having fewer choices in low-fare travel. But for East Coast travelers, Avelo’s reboot may translate into superior service, more predictable scheduling and a more robust route map designed to contend with the future.

Source Credit: www.travelweekly.com