The recent announcement that Avelo will order 50 to 100 jets with a list price of $1.4 billion from Brazil's Embraer pulled back the curtain on the airline's struggles.
The airline also disclosed that it received another investment. It provided few details other than to say the dollar figure was the largest since the initial $125 million raised before its 2022 launch.
In an interview with The Points Guy site, Avelo founder and CEO Andrew Levy confirmed that the airline took a financial hit following a battle for passengers at its flagship New Haven hub when Breeze entered the market.
Breeze retaliated after Avelo launched flights from nearby Hartford. New Haven, which has a post-stamp-sized terminal and vehicle access issues was jammed with frustrated travelers.
Wilmington Airport is in far better shape is working to complete a terminal upgrade and expansion project.
Things have since quieted down in Connecticut. However, a weakened Avelo limped into 2025 and didn't do well in a soft first quarter. The losses go a long way in explaining the controversial decision to use three of its jets for ICE deportation flights. Avelo is also phasing out West Coast routes faster than expected.
Levy stated that things improved in the second quarter, and according to another interview with The Cranky Flier site, he reported that the airline had a successful summer.
The Cranky Flier remains skeptical about Avelo's future, citing its underwhelming performance over several months.
Early coverage of the Embraer order led to initial speculation that the airline would phase out its fleet of Boeing 737s in favor of the Brazilian jets. It turns out that Avelo plans to add to its fleet of Boeing 737-800s, which seat nearly 190 passengers, while phasing out its older 737 700s.
Wilmington has two 737 800s based at the airport and will see a third jet as its beefed-up winter schedule gets underway.
The Embraer jets will open up new markets for Avelo, thanks to a 29% improvement in fuel efficiency and a cabin that eliminates the dreaded middle seat. The jet-maker is also introducing a package that extends the jet's range and enables it to land on shorter runways.
The Embracers would open up potential markets for Wilmington Airport, which could include Key West..
The two-across seating and fuel economy could lure business travelers if Avelo can establish a presence with daily flights from some of its destinations. Rival Frontier is attempting the same approach, with mixed results.
The challenge for Avelo is navigating a difficult environment between now and 2027 and avoiding another New Haven-style battle. It will also require continued growth in passenger traffic from Wilmington, one of Avelo's success stories, despite some early setbacks. - Doug Rainey, chief content officer.
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