What’s The Bizarre History Behind Avelo Airlines?
Avelo Airlines is a fundamentally peculiar airline, playing a significant role in numerous US travel markets while often steering clear of the largest cities. Many travelers might not recognize this unique carrier, even though it has existed in various forms for decades. Unlike Breeze Airways, which operates under the famed industry giant David Neeleman’s strategic vision, Avelo Airlines can be quite complex to understand and classify. In this article, we explore the unusual history of Avelo Airlines, trace its origins, and speculate on its future prospects.
A Quick Overview Of Avelo Airlines
Before diving into the company’s history, it’s essential to cover the basics. Avelo Airlines is an ultra-low-cost carrier, akin to Spirit Airlines and Frontier Airlines. Officially headquartered in Houston, Texas, the carrier operates from several bases nationwide. Previously, it operated under different names, including Casino Express Airlines and Xtra Airways, primarily serving charter flight networks. It rebranded as Avelo Airlines on April 8, 2021, with its first scheduled flight taking place on April 28, 2021, from Hollywood Burbank Airport to Charles M. Schulz-Sonoma County Airport.
The Inception As Casino Express Airlines
First established on July 20, 1987, as Casino Express Airlines, the carrier began operations in 1989 utilizing Boeing 737-200 aircraft. Serving exclusively the Red Lion Hotel and Casino in Elko, Nevada, the airline operated primarily from Elko Regional Airport to destinations across the USA. By 1994, the airline expanded to schedule flights on weekends between Elko and major cities like Portland and Seattle, utilizing McDonnell Douglas MD-80 aircraft. Notable later endeavors included operating a Boeing 737-200 for Tahoe Air in 1999.
Rebranding as Xtra Airways
In December 2005, Casino Express rebranded to Xtra Airways to signify its broader charter service spectrum, catering to sports teams, governments, and other group needs. Between 2007 and 2012, Xtra Airways operated Boeing 737-400 aircraft for Direct Air, mainly out of Myrtle Beach, South Carolina. A significant moment came in 2016 when the airline flew Boeing 737 aircraft for Hillary Clinton’s 2016 presidential campaign.
Emergence of Avelo Airlines
The current phase of Avelo Airlines emerged in August 2018 when Andrew Levy, previously president of Allegiant Air and CFO of United Airlines, acquired Xtra Airways. Levy envisioned transforming it into an ultra-low-cost carrier capable of contending with established low-cost competitors. Avelo Airlines was officially born on April 8, 2021, launching tickets for eleven destinations from Hollywood Burbank Airport using Boeing 737-800 aircraft.
The Competitive Challenge and Expansion
Avelo’s market entry prompted competitors like American Airlines and Alaska Airlines to alter service frequencies on overlapping routes. The airline rapidly adapted its network, discontinuing certain routes, while expanding others to destinations like Fort Collins and Las Vegas.
By May 2021, Avelo invested heavily in its operations at Tweed New Haven Airport, successfully launching routes to Florida. By 2024, the New Haven base burgeoned to encompass 26 destinations. Over recent years, additional bases emerged in Orlando, Wilmington, Raleigh-Durham, Las Vegas, and Santa Rosa.
Controversies and Future Prospects
In April 2025, Avelo Airlines attracted controversy by entering a long-term charter contract with the US Department of Homeland Security’s ICE division, leading to public criticism and calls for boycotts. The decision, meant to provide financial stability for the airline, was defended by Avelo CEO Andrew Levy, who emphasized its role in ensuring the employment of over 1,100 crew members and supporting core passenger services expansion.
Despite these controversies, Avelo Airlines has garnered recognition for its on-time performance and operational expansions. The airline has announced significant growth plans, including acquiring Boeing 737 aircraft and launching new routes, even venturing into international destinations like the Dominican Republic and Mexico. As it continues its unorthodox journey within the competitive airline industry, Avelo Airlines remains a fascinating entity with an unpredictable yet intriguing future ahead.
