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.

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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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