Summary
- Avelo Airlines achieved first profitable quarter with impressive 74% revenue growth and ultra-low cost operations.
- CEO Andrew Levy is bullish on 2024, emphasizing strong liquidity, revenue outlook, and value discipline.
- Hunter Keay, CFO, highlights low non-fuel unit costs, enabling inexpensive fares and powerful operational performance.
Avelo Airlines has announced its first-ever profitable quarter since commencing operations almost three years ago. Revenue growth, cost discipline, and a busy Christmas period all contributed to the Q4 2023 milestone.
Photo: Robin Guess | Shutterstock
The carrier carried a complete of two.3 million passengers last yr, and saw its revenue grow 74% year-on-year, reaching $265 million. Because of its ultra-low-cost operating model, Avelo Airlines also reported the bottom cost per average seat mile (CASM), excluding fuel costs, of any US airline, in Q4 2023, coming in at just 6.6 cents (down from 6.9 cents in Q3).
Setting a positive outlook for 2024
Avelo Airlines’ Founder, Chairman, and CEO, Andrew Levy, celebrated the announcement and explained what this meant for the carrier’s outlook for 2024 and beyond, saying,
“Achieving our first profitable quarter is an exciting and significant milestone in Avelo’s journey. I’m confident Avelo’s strong liquidity position, ongoing margin improvement, healthy revenue outlook, industry-leading reliability, and rigorous cost discipline will deliver our first profitable yr in 2024. As we approach Avelo’s third anniversary, I’m very bullish about our future and the substantial opportunities ahead of us.”
Photo: Vincenzo Pace I Easy Flying
Meanwhile, the airline’s Chief Financial Officer, Hunter Keay, explained how the carrier achieved a powerful financial performance, despite high fuel prices, adding,
“Avelo’s non-fuel unit costs are half of the US airline industry average, and we see this gap widening in 2024. Low costs enable low fares, which is much more vital to consumers in the present high-inflation environment.”
Avelo Airlines’ recent operational performance has been equally strong, with the carrier achieving the second-lowest flight cancelation rate of 1.08% in January 2024, in comparison with an industry average of three.51%.
Avelo Airlines’ growing ambitions
Avelo Airlines commenced operations on April twenty eighth, 2021, and has since carried over 4 million passengers on greater than 30,000 flights. Today, the airline operates a fleet of 16 Boeing 737s – nine 737-800s and 7 737-700s. The aircraft seat a complete of 189 and 149 passengers, respectively, and can soon be joined by six additional 737s that Avelo Airlines currently has on order.
Avelo Airlines To Take 5 Boeing 737NGs From GOL
The ultra-low-cost airline continues to grow its fleet.
Avelo Airlines deploys its fleet on services to 48 destinations nationwide from its six operating bases – Hollywood Burbank Airport (BUR), Tweed-Recent Haven Airport (HVN), Orlando International Airport (MCO), Wilmington Airport (ILG), Raleigh-Durham International Airport (RDU), and Harry Reid International Airport (LAS).
Nevertheless, on May 1st, the carrier will move its Las Vegas base to Sonoma County Airport (STS), becoming one among only three industrial airlines to operate flights on the California airport, alongside American Airlines and Alaska Airlines.
West Coast Expansion: Avelo Airlines To Open Recent Base At Sonoma County Airport
After nearly three years of serving Charles M. Schulz Sonoma County Airport, Avelo Airlines has announced a brand new base in Santa Rosa.
What do you’re thinking that of Avelo Airlines’ Q4 2023 financial performance? Have you ever flown with the carrier? Share your thoughts and experiences by commenting below.