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Startup Avelo Airlines announces new funding round as it plans to double in size

Jan. 06, 2022
2 min read
Startup Avelo Airlines announces new funding round as it plans to double in size
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Less than a year after commencing operations, Avelo Airlines announced a new funding round on Thursday and is looking to the future.

The Houston-headquartered ultra-low-cost carrier raised $42 million in Series B funding, led by Morgan Stanley's North Haven Tactical Value Fund. With its $30 million investment in the Series B round, which follows its participation in Avelo's January 2020 Series A round in which the group invested about $125 million. With the latest investment, North Haven Tactical Value Fund is now the airline's largest shareholder.

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“The incremental capital we’ve raised is a significant vote of confidence in Avelo’s initial momentum and the enormous opportunity ahead of us,” Avelo CEO Andrew Levy said in a statement. “This additional capital significantly bolsters our already strong balance sheet and enables the acceleration of Avelo’s growth trajectory in 2022 and beyond.”

Avelo now has a capital base of over $160 million.

The airline also announced on Thursday that plans to add nine more aircraft to its existing fleet of six 737-700s and 737-800s by the end of the year. It also plans to double its network, from 19 destinations to at least 40, and expects to hire 450 more crew members.

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Avelo launched in April 2021 with a base at the Hollywood Burbank Airport (BUR) in Southern California. In November, the startup added Connecticut's Tweed-New Haven Airport (HVN) as its second base. Since its launch, Avelo has flown more than 345,000 passengers on over 3,000 flights. Only seven flights have had to be canceled since the launch date, the airline said, and most of those cancelations have been due to weather.

More: ‘It’s surreal’: What it was like on Avelo Airlines’ inaugural East Coast flight

Avelo was one of three U.S. airlines to launch in 2021, along with Breeze and Aha!, which is operated by former United Express carrier ExpressJet.

Featured image by (Photo by Zach Griff/The Points Guy)
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TPG Editor‘s Rating
Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer.
4 / 5
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Rewards Rate

10XEarn unlimited 10X miles on hotels and rental cars booked through Capital One Travel
5X5X miles on flights booked through Capital One Travel.
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  • Intro Offer
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    Credit ranges are a variation of FICO© Score 8, one of many types of credit scores lenders may use when considering your credit card application.

    740-850
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Why We Chose It

The Capital One Venture X card is one of the best all-round travel credit cards ever launched. Not only is it offering a tremendous welcome bonus, but cardholders can earn tons of miles on everyday spending and receive a 10,000-mile anniversary bonus to boot. Its annual fee is $395, but cardholders can count on up to $300 in statement credits toward travel booked through Capital One Travel each year and other valuable benefits like access to Priority Pass lounges and Capital One’s own growing family of airport lounges.

Pros

  • Excellent welcome offer worth 75,000 miles after you spend $4,000 on purchases in the first three months.
  • Up to $300 in annual travel statement credits toward bookings make through Capital One Travel.
  • 10,000 bonus miles (worth $100 toward travel) each account anniversary.

Cons

  • The $395 annual fee might be expensive for some, but this card’s benefits provide much more value than that.
  • If you don’t travel frequently, this might not be the best card for you.
  • Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel
  • Receive up to $300 back annually as statement credits for bookings through Capital One Travel, where you'll get Capital One's best prices on thousands of options
  • Get 10,000 bonus miles (equal to $100 towards travel) every year, starting on your first anniversary
  • Earn unlimited 10X miles on hotels and rental cars booked through Capital One Travel and 5X miles on flights booked through Capital One Travel
  • Earn unlimited 2X miles on all other purchases
  • Unlimited complimentary access for you and two guests to 1,400+ lounges, including Capital One Lounges and our Partner Lounge Network
  • Receive up to a $100 credit for Global Entry or TSA PreCheck®
  • Use your Venture X miles to easily cover travel expenses, including flights, hotels, rental cars and more—you can even transfer your miles to your choice of 15+ travel loyalty programs
  • Named editors' choice for "Best New Credit Card of 2021" by The Points Guy
  • Earn 10 miles per dollar when you book on Turo, the world's largest car sharing marketplace, through May 16, 2023