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Startup Avelo Airlines announces new funding round as it plans to double in size
Ethan Klapper
Contributor
Ethan Klapper is a former senior aviation reporter at TPG who focused on the operational side of the airline industry. He joined TPG from Yahoo News in 2021, where he served as senior audience development editor, overseeing social media and audience development strategy. Prior to joining the Yahoo News team in 2018, Ethan worked at HuffPost.
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.
"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.
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.
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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 ZACH GRIFF/THE POINTS GUY
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Best for dining at restaurants
TPG Editor‘s Rating
Go to reviewCard Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer.
Rewards Rate
| 4X | 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. |
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You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
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.Excellent to Good
Why We Chose It
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.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.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $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.