Houston-based Avelo Airlines Turns Five, Eyes Next Growth Phase

‍HOUSTON — On Tuesday, Avelo Airlines (XP) marked the fifth anniversary of its April 28, 2021 launch, highlighting its growth from a three-aircraft startup to a 15-aircraft carrier serving 34 destinations and nearly 60 routes across 14 states and Puerto Rico.

The airline reported flying over 9.3 million customers and operating more than 74,000 flights since its inception.

Evolving from startup to niche national carrier

Avelo began service with 11 West Coast destinations and has since developed a network focused on underserved airports and secondary markets, especially along the East Coast and Midwest. In the next two months, the carrier plans to add Cleveland (CLE) and Indianapolis (IND).

Later this year, it expects to open its first Texas base at McKinney National Airport (TKI), which would become its fifth base after New Haven (HVN), Wilmington (ILG), Lakeland (LAL), and Concord (USA).

Fun fact: the "XP" code was a natural fit for Xtra Airways (likely referencing the "X" and "P" sounds or just an available unique pair). When the airline was purchased and rebranded to Avelo Airlines in 2021, it kept the existing IATA and FAA certifications, and the associated XP code, to streamline the transition to scheduled operations

Reliability remains a key differentiator

Avelo’s anniversary release emphasized reliability metrics over route totals. The carrier reported ranking in the top three for both on-time performance and cancellation rate in 2025, with a 0.13% cancellation rate and 79.95% of flights arriving within 15 minutes of schedule under the DOT’s A14 standard.

If maintained, these results would continue to distinguish Avelo as a leisure-focused airline prioritizing convenience and low fares.

Avelo reported “strong” financial momentum, though the anniversary release did not include revenue, profit, or cash figures. As a private company, Avelo provides selective operational and customer metrics rather than comprehensive financial disclosures.

The airline stated it now employs over 1,000 crew members, achieved a Net Promoter Score of 51 in 2025, and launched the Avelo PLUS membership program last fall to enhance loyalty and ancillary revenue.

Fleet strategy represents the next phase

Looking ahead, XP currently operates 15 Boeing 737 Next Generation aircraft and expects two additional deliveries by the end of 2026. Its long-term fleet strategy is more significant:

Reuters reported last year that Avelo ordered 50 Embraer E195-E2s, with purchase rights for another 50, marking the first U.S. order for this type. CEO Andrew Levy stated that the E2 will eventually complement and then replace parts of the airline’s 737-800 fleet, enabling service to airports with shorter runways.

Avelo factsheet

Headquarters

• Location: Houston, Texas.
• Corporate Function: While Avelo doesn't fly into Houston's major airports, the city serves as its central administrative and leadership hub.

Operating Bases

Avelo uses a "base" model where aircraft and crew are stationed at specific regional airports to serve a network of destinations. Its current primary bases include:

• East Coast:
  • Tweed-New Haven Airport (HVN) – New Haven, Connecticut. This is Avelo's largest base and a primary focal point for its East Coast operations.
  • Wilmington Airport (ILG) – Wilmington, Delaware.
  • Raleigh-Durham International Airport (RDU) – Raleigh/Durham, North Carolina.
• West Coast:
  • Hollywood Burbank Airport (BUR) – Burbank, California. This was the airline's first base and serves as its main West Coast hub.
  • Charles M. Schulz–Sonoma County Airport (STS) – Santa Rosa, California.
• Southeast:
  • Orlando International Airport (MCO) – Orlando, Florida.
  • Lakeland Linder International Airport (LAL) – Lakeland, Florida.

Key Takeaway

After five years, XP has moved beyond its post-pandemic startup origins. The airline aims to demonstrate that a smaller U.S. carrier can establish a sustainable niche by focusing on underserved airports, reliable operations, and disciplined growth, rather than pursuing the scale of the major carriers.

However, financial transparency remains lacking. While XP reports strong momentum and favorable operational data, the key challenge will be converting this performance into lasting profitability as it expands, adds aircraft, and transitions its fleet.

We salute the quiet but reliable XP on its 5th anniversary.