Brace yourself for fewer budget flight options on the West Coast as a once-promising carrier pulls out. Avelo Airlines, a Texas-based budget airline famous for its rock-bottom fares starting under $30, is making a dramatic exit from California. This move signals tough times for low-cost travel in the region.
According to the Daily Mail, Avelo Airlines announced on Monday that it will cease all operations in California, closing its base at Hollywood Burbank Airport by December 2, 2025, and redirecting its focus to its 38 East Coast destinations.
Let’s rewind to 2021, when Avelo first took off from Hollywood Burbank Airport (BUR). That inaugural flight to Northern California marked the airline’s debut and rooted its identity on the West Coast. BUR wasn’t just a hub—it was the starting line.
For years, Avelo connected 10 West Coast cities, including Los Angeles, Las Vegas, Portland, and Kalispell, Montana. But competitive pressures in California have now forced a retreat. The airline couldn’t sustain the results needed to stay, despite heavy investment.
“This was not an easy decision,” said Andrew Levy, Avelo’s top executive. He noted the company’s deep ties to BUR, reflecting on their launch during the COVID pandemic over four years ago.
A company spokesperson echoed this, admitting they poured significant time and resources into the West Coast. Yet, the venture fell short of expectations. It’s a stark reminder that even budget models can’t always outmuscle market realities.
Now, Avelo is pivoting hard to the East Coast, relocating three planes from California. Levy emphasized longer-term growth prospects in that region. “We see more efficient opportunities there,” he added.
The airline insists this shift brings only upsides for East Coast airports. A spokesperson confirmed they’re already planning the redeployment. It’s a calculated bet on a friendlier market. But let’s not ignore the elephant in the room—public backlash. Avelo has faced criticism for its contract with the Department of Homeland Security to transport migrants to detention centers. This deal, signed in April, sparked outrage among both activists and consumers.
Protests have erupted nationwide, from Burbank Airport to Avelo’s hub in New Haven, Connecticut. Calls for boycotts have grown louder, especially over the airline’s role in deportation flights under past administrations. It’s a PR storm they can’t easily dodge.
California native Nancy Klein has been a key figure in this opposition, organizing seven protests against Avelo. She’s gearing up for another demonstration at Burbank Airport on July 27. “This change in Avelo’s operations shows persistence can matter,” Klein stated.
Yet, Avelo pushes back on claims that protests or the DHS contract influenced their exit. “These had no effect on our decision,” a spokesperson told DailyMail.com. They’re framing this as purely a business call.
For West Coast travelers, this is a blow to affordable airfare options. Fewer players mean less competition, and likely higher prices in the long run. Keep an eye on how other budget carriers respond—there could be gaps to fill.
From an investment angle, Avelo’s pivot raises questions about the viability of ultra-low-cost models in saturated markets like California. If you’re eyeing airline stocks, focus on carriers with lean operations and less exposure to volatile regions. Diversify your portfolio to hedge against such sector-specific risks.
Ultimately, Avelo’s retreat underscores a brutal truth: even free-market darlings face headwinds when costs and competition collide. For liberty-minded readers, it’s also a cautionary tale about government contracts—public perception can bite, even if it’s not the stated reason for failure. Stay frugal, stay informed, and watch where the next budget airline battle unfolds.