Avelo receives more funding and plans large expansion in 2022

Startup discount carrier Avelo Airlines plans to more than double its destinations this year while increasing its fleet of Boeing 737NGs from six to 15. 

The carrier also expects to add 450 crewmembers in 2022. 

The Burbank, Calif.-based carrier, which launched last April, currently serves 19 destinations. By the end of this year, Avelo expects its destination count to reach or exceed 40. 

The carrier highlighted its 2022 plans Thursday, also announcing a new capital infusion of $42 million. The new funding round increased Avelo’s capital base to $162 million.

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“This additional capital significantly bolsters our already strong balance sheet and enables the acceleration of Avelo’s growth trajectory in 2022 and beyond,” CEO Andrew Levy said in a prepared remark. 

Avelo said that an investment fund managed by Morgan Stanley Tactical Value accounted for $30 million of the new capital raise. The fund is now by far Avelo’s largest shareholder.

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