What are the reasons behind Avelo's West Coast retreat, and what does it mean for regional air travel in California and beyond?

Avelo Airlines is closing its Southern California operations to focus on East Coast growth, allowing affected passengers to get full refunds.

“Our West Coast closure has no effect on our Connecticut service or operations,” said Courtney Goff, Communications Manager for Avelo Airlines. “We are in the planning phases of relocating the three planes to the East Coast, so only positive outcomes for our East Coast airports.”

Avelo said leaving Burbank was unrelated to its controversial contract with ICE. Backlash against the contract nor the contract itself has impacted Avelo’s business, the carrier said.

Low-cost carrier Avelo Airlines is planning to withdraw from the West Coast of the USA by year-end, a sweeping strategic change that signals significant financial difficulty for the start-up.

Avelo Airlines will shut down its base at Hollywood Burbank Airport (BUR) by early December, ending a four-year presence at its West Coast hub. The airline cited challenging market conditions and limited financial returns in the region. It will instead target more profitable opportunities on the U.S. East Coast and in charter flying.