Avelo Exits Burbank: Why It Is Abandoning the West Coast

Just over four years after its bold debut at Hollywood Burbank Airport (BUR), Avelo Airlines (XP) has announced a full withdrawal from the West Coast. As of August 12, 2025, the airline will reduce its presence at BUR to a single aircraft, with a complete cessation of operations scheduled by December 2. The decision marks a change for one of the US airline industry’s youngest ultra-low-cost carriers.

In a letter to employees, CEO Andrew Levy cited unsustainable financial performance and intensifying competitive pressure as primary drivers of the decision. Avelo based up to five Boeing 737s in Burbank at its peak, serving destinations across California, Oregon, Nevada, and Arizona.

Now, that westward ambition is winding down, as the airline aims to serve more profitable markets in the US East Coast.

Financial Reality in a Saturated Market

When Avelo launched from Burbank in April 2021, the setting was ripe: pandemic-era softness in demand gave way to a recovery surge, airport slots were more accessible, and travelers sought value-focused alternatives. However, that initial flexibility vanished quickly.

The Los Angeles Basin remains one of the most competitive air travel regions in the country.  Between Los Angeles (LAX), Burbank (BUR), Long Beach (LGB), Ontario (ONT), and Santa Ana (SNA), the area is saturated with service from legacy, low-cost, and ultra-low-cost carriers.

Avelo found itself not only battling for market share but also for pricing power—a difficult proposition in a post-COVID-19 world defined by inflationary pressure, pilot shortages, and volatile fuel costs.

Despite creative scheduling and low overhead, Avelo was unable to consistently generate the revenue required to sustain multiple aircraft in California. According to publicly available FAA filings and route data, many of Avelo’s thinner point-to-point routes out of BUR hovered at or below breakeven load factors, with sharp seasonal variability and limited corporate travel demand to offset off-peak slumps.

Avelo’s New Chapter

Rather than shrinking across the board, Avelo is redeploying resources eastward. Aircraft previously stationed in California will now support expanded operations in New Haven (HVN), Wilmington (ILG), Raleigh–Durham (RDU), and Orlando (MCO)—hubs where Avelo faces fewer ultra-low-cost competitors and where secondary airports allow for lower operating costs.

The move aligns with broader trends in US commercial aviation: carriers gravitating toward underserved or niche markets in search of better yields and operational reliability. While the Burbank departure may be seen as a retreat, it’s perhaps more accurately a realignment to preserve scale and profitability in friendlier markets.

Community & Connectivity Impact

The decision has raised concerns in smaller West Coast cities that relied on Avelo for non-stop service—places like Santa Rosa (STS), Eugene (EUG), Medford (MFR), and Redmond (RDM). For many of these airports, Avelo offered the only direct access to Southern California outside the megahubs.

As of mid-July, no formal replacements have been announced to fill the void left by Avelo. The loss of nonstop flights, even with relatively modest frequencies, could ripple through local economies and tourism sectors that had grown dependent on the airline’s presence.

Passengers in Burbank itself will now have to rely more heavily on the region’s other airports. For a carrier that was once celebrated for bringing “convenient, low-cost travel back to Hollywood,” the departure reduces competition. It could eventually lead to higher fares on some regional routes.

The Big Picture

Avelo’s exit from Burbank underscores the brutal economics of operating a new low-cost carrier in a mature market. While the airline still has room to maneuver—and arguably better conditions on the East Coast—its California exit marks the end of its initial founding vision. It’s a reminder that in commercial aviation, opportunity alone isn’t enough.

Sustained success requires the right balance of demand, pricing power, infrastructure, and capital discipline.

Whether Avelo’s network strategy leads to long-term viability will depend on how well it can convert East Coast footholds into sustainable growth. For now, the West Coast experiment joins the annals of airline chapters that began with optimism—and ended with a quiet fade to the east.