Avelo Airlines Cuts 29% Of Flights: Why Is The Budget Carrier Shrinking So Fast?
•February 20, 2026
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Why It Matters
The network shrinkage reshapes Avelo's market footprint, signaling a shift toward a leaner, more sustainable ULCC model that could influence pricing and capacity dynamics across secondary airports.
Key Takeaways
- •Avelo cuts 3,000 flights, 29% reduction Q2 2026.
- •Shutting two East Coast bases, ending West Coast ops.
- •Retiring Boeing 737-700 fleet, focusing on 737-800s.
- •New base planned at Dallas‑McKinney Airport 2026.
- •Order up to 100 Embraer 195‑E2 jets for future growth.
Pulse Analysis
Avelo's drastic schedule contraction reflects broader pressures on ultra‑low‑cost carriers (ULCCs) as they balance growth ambitions with profitability. After a turbulent 2025, the airline chose to prune underperforming routes, especially on the West Coast, where competition from Breeze Airways and Delta focus cities eroded yields. By shedding 29% of its flights, Avelo reduces operational complexity and aligns capacity with demand, a move that mirrors a sector‑wide trend toward tighter network management amid rising fuel costs and labor constraints.
The carrier's strategic realignment centers on consolidating crew bases and modernizing its fleet. Closing Raleigh‑Durham and Wilmington bases while retaining four core locations allows Avelo to concentrate resources and improve aircraft utilization. The accelerated retirement of eight 737‑700s, replaced by a younger 737‑800 fleet, enhances seat‑mile economics and lowers maintenance overhead. Simultaneously, the pending launch of a Dallas‑McKinney hub positions Avelo to capture growth in the expanding North Texas market, leveraging first‑mover advantages at a newly built terminal.
Looking ahead, Avelo's order for up to 100 Embraer 195‑E2 jets signals a long‑term commitment to fleet renewal and market expansion. The smaller, fuel‑efficient jets will enable the airline to serve thinner routes profitably, potentially reopening select markets once demand stabilizes. Investors and industry observers will watch how Avelo balances immediate cost cuts with its growth roadmap, as its actions could set a precedent for other ULCCs navigating post‑pandemic recovery and competitive pressures.
Avelo Airlines Cuts 29% Of Flights: Why Is The Budget Carrier Shrinking So Fast?
Ultra‑low‑cost carrier Avelo Airlines is in the midst of an extensive network rationalization following a turbulent 2025. However, just how much the airline is cutting has now become clear as its schedule for the second quarter of this year is firmed up. The airline will be removing over 3,000 flights, a reduction of 29 % compared with the same period last year.
There are multiple reasons for such drastic reductions. Some of it stems from Avelo choosing to end its West Coast operations in the back half of last year, and the earlier‑than‑expected retirement of its Boeing 737‑700 aircraft also plays a role. However, the biggest impact comes from its shuttering of two East Coast bases and cutting over twenty routes. Let’s take a closer look.
A Consolidation Of Crew Bases
Image 1: Avelo Airlines Boeing 737‑800 airplane at Tampa Airport in the United States.
Pulling out of RDU is understandable, given that it has grown as a Delta Air Lines focus city, and Avelo has also struggled there against Breeze Airways, which has gained significant traction over the last two years. Avelo has also said that it will no longer operate deportation flights on behalf of ICE, leading to its exit from Phoenix‑Mesa (AZA) too. This will leave it with just four bases going into Q2 2026, as detailed in the table below.
Avelo has also said that it plans to create a new base at Dallas‑McKinney National Airport (TKI) later in 2026. TKI is a bet on the expansion of commercial operations in the massive North Texas catchment area, where a new terminal is being constructed, offering Avelo a first‑mover advantage. The airline has been the first carrier to commit to the new facility, with routes to be announced closer to launch. Avelo summed it up in its press release by saying:
“These changes enable Avelo to focus on sustainably scaling five core bases in 2026 and to prepare the company for growth in the coming years, facilitated by the company’s recent order for up to 100 Embraer 195‑E2 aircraft.”
Image 3: Avelo Boeing 737‑800 taxiing.
In total, Avelo Airlines will operate 3,166 fewer flights in Q2 2026 than it did in the same quarter last year, representing a significant 29 % decrease across its network. Most of this is because of cities that have been removed from the network, with the biggest hits happening out West after the closure of operations at airports like Hollywood Burbank Airport, Sonoma County, and Redmond.
The two airports that are being removed as bases, Raleigh‑Durham and Wilmington, will still be served with flights from Avelo’s remaining bases, but will have significantly reduced service compared with a year ago. Meanwhile, some large hubs like Miami, Las Vegas, and Washington Dulles have all been removed from the Avelo network entirely.
However, it’s not a case of reductions right across the board, as some cities will see an increase in Avelo flights compared with last year. Both Lakeland and Concord will see over 200 more flights this quarter versus last year as the airline increases its concentration at these bases. Interestingly, flights to/from Hartsfield‑Jackson Atlanta International Airport will more than double to nearly 250, and San Juan, Puerto Rico will also increase to an average of three daily flights.
Image 5: An Avelo Airlines Embraer E195 E2 rendering flying over Washington.
Another major change is that Avelo is also retiring its 149‑seat 737‑700s, which is reducing the overall capacity of the fleet. The carrier has historically operated eight of this type, all leased, but placed five of these in storage in January. Aero Routes reports that Avelo has accelerated the retirement of the remaining three, with the last 737‑700 flight set to operate on February 24 from Raleigh‑Durham to Tweed New Haven Airport.
The airline will continue on with its larger 737‑800s, which are configured with 189 seats, offering better seat‑mile economics over the 737‑700s. It currently has 14 examples, with an average age of 16.4 years. These will carry out a total of 7,664 flights in Q2 2026, down from more than 10,000 a year earlier, equating to each aircraft operating approximately six sectors a day.
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