Avelo Airlines has big expansion plan for US after ordering up to 100 Embraer E2s
Avelo Airlines will add up to 100 Embraer E195-E2s to its fleet under a new deal with the Brazilian plane maker.
The Houston-based discounter ordered 50 firm E195-E2s — plus 50 purchase rights — with deliveries beginning in the first quarter of 2027, said Arjan Meijer, CEO of Embraer Commercial Aviation, at an event in Washington, D.C., on Wednesday. The order is Embraer's first for the E195-E2 in the U.S.
Andrew Levy, CEO of Avelo, said the E2s will complement the airline’s fleet of Boeing 737-800s and, thanks to the E2's smaller size, enable growth to more small and mid-sized markets across the U.S.
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“When we go into a lot of new markets, or markets never served before, it takes a long time to develop those markets,” said Levy. “This airplane is going to help us be successful to build out the [significant] opportunity we see in the marketplace.”
Avelo's E195-E2s will seat around 140 passengers in an all-economy layout, Levy said. He did not specify how many standard economy and extra-legroom economy seats are planned for the planes.
Avelo configures its 14 737-800s with 189 seats.
The Embraer order comes amid a period of change for Avelo. The airline faces continued controversy over its decision to operate deportation flights from the U.S. for Immigration and Customs Enforcement. And in July it announced that it would end operations on the U.S. West Coast and exit 10 cities by December.
Earlier in September, Avelo said it closed a round of “significant” new funding.
That investment includes Embraer, The Air Current reported. Both Avelo and Embraer executives declined to comment on the reporting.
It comes after a rough start to 2025 for the carrier's finances.
In response to questions over Avelo's $13.7 million operating loss in the first quarter, Levy said the airline faced increased competition in some of its core markets, notably Connecticut. Competition has since abated and Avelo has made adjustments to its route map to address some of the losses, he added.
"We didn’t just get stupid in the first quarter," Levy added.
Embraers for growth
Avelo's new E195-E2s will almost entirely be for growth, Levy said. While he would not name a specific destination the airline could add with the plane, he noted airports with relatively short runways of 5,000 feet or less in length are "in play" with the E2.
Embraer will install its short-field performance package on Avelo's E2s, allowing the planes to fly several hundred additional miles from the airports with short runways than comparably sized planes. The planemaker cited Key West International Airport (EYW) with its 5,076-foot long runway as an example where the additional range could be beneficial.
Avelo will add EYW to its map on Nov. 19 with twice-weekly flights on Wednesdays and Saturdays from Tweed New Haven Airport (HVN) in Connecticut.
Other than airports with short runways, Avelo also sees opportunity for the E2 to fill out its operations at some of its smaller bases. At Lakeland Linder International Airport (LAL) in Florida, for example, Levy said the plane could open new flights to some major airports already on its map, like Baltimore-Washington International Airport (BWI) and Chicago's O'Hare International Airport (ORD).
The E195-E2 can fly up to 3,450 miles — or about the distance from Ted Stevens Anchorage International Airport (ANC) in Alaska to Hartsfield-Jackson Atlanta International Airport (ATL) — according to the planemaker.
A dual E2 and 737 fleet
Avelo aims for a dual fleet of 737-800s and E195-E2s in the coming years, Levy said. The eight 737-700s it flies will be retired as as the E2s arrive.
The E195-E2s cost roughly 30% less to operate than the 737-700, Embraer's Meijer said. Levy touted the E2s shorter range and 2-2 seating layout for Avelo's choice of the Embraer family over Airbus' competing A220.
"I’ve always wanted a new version of the MD-80," he said referring to the McDonnell Douglas narrowbody that was popular with airlines in the 1980s and 1990s. "A 150-seat airplane that can fly 4-5 hours.”
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
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- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
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- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.