In April 2025, it was disclosed that budget airline Avelo Airlines would initiate deportation flights due to a partnership with the Immigration and Customs Enforcement (ICE) sector of the Department of Homeland Security (DHS). For Avelo, this represented a means to secure a reliable revenue source in a primarily domestic airline market that is otherwise demanding. However, this decision was met with considerable controversy, leading to Avelo encountering opposition in numerous markets. An intriguing development has emerged regarding this situation.
Avelo is downsizing its fleet, with aircraft being allocated to ICE. This week, Avelo Airlines unveiled its strategy to streamline its operations and fleet amid a “balance sheet transformation.” The airline plans to shut several bases, notably in Mesa, Arizona (AZA), Raleigh-Durham, North Carolina (RDU), and Wilmington, North Carolina (ILM), while concentrating on New Haven, Connecticut (HVN), Wilmington, Delaware (ILG), Concord, North Carolina (USA), and Lakeland, Florida (LAL). Furthermore, the airline is withdrawing six Boeing 737-700s from its fleet, primarily operating Boeing 737-800s thereafter.
This is where things become intriguing. Although Avelo has not emphasized this aspect, the closure of its Mesa base strongly suggests the airline is discontinuing deportation flights. The airline did not conduct regularly scheduled passenger operations out of Mesa; rather, it served as the hub for deportation flights. Recall the recent announcement from the US government about acquiring six Boeing 737s to establish its own deportation “airline?” Coincidentally, this matches the number of 737s Avelo is phasing out. Enilria highlights that the FAA database now lists some former Avelo 737-700s as owned by Daedalus Aviation Corp, the same firm supplying these aircraft to ICE. This implies Avelo is ceasing deportation flights, with those planes directly sold to ICE, effectively removing the intermediate step.
I am curious about the factors that led to this transition regarding deportation flights. The narrative behind Avelo’s decision to discontinue its deportation operations might involve several considerations:
– Did Avelo conclude that the perception of these flights was unfavorable, negatively affecting its identity as a regular scheduled airline?
– Is Avelo anticipating a significant benefit from selling these aircraft? Given that these planes were originally leased, it’s unclear if this would provide Avelo with a substantial cash influx.
– Was the deportation flight agreement time-limited, leading ICE to seek a more independent initiative and therefore discontinue collaboration with Avelo?
Information about Avelo’s financial situation is scarce, as the airline is not publicly listed. It remains a tough landscape for any airline not named Delta or United (or, to a lesser degree, Alaska, American, or Southwest), generating some speculation…
In summary, Avelo Airlines will cease deportation flights due to the closure of its Mesa base. Along with this, the airline will part with six Boeing 737-700s to streamline its fleet. Interestingly, those aircraft are being sold directly to ICE, coinciding with the government’s rollout of “ICE Air.” One ponders what may have influenced Avelo’s strategic change. What do you think is transpiring behind the scenes that led Avelo to stop deportation flights and offload these Boeing 737s?