Avelo Airlines (XP, Burbank) announced it had closed a new round for an undisclosed amount of capital, which will be used to support its "continued expansion" across the United States and the Caribbean.
In a statement, the airline said that this financing round from a new partner represents the largest single investment since its initial Series A funding.
The carrier raised around USD125 million in January 2020 in Series A funding, then in January 2022 it raised a further USD42 million in Series B funding. Earlier this year, it was reported that Avelo was looking to raise about USD100 million. The funding comes amid public pushback against it operating some deportation flights for the US Department of Homeland Security.
“This new capital strengthens our liquidity position. This investment comes at a pivotal time in the domestic airline industry and will allow Avelo to double down on an addressable market that is too often being priced out by higher fare airlines,” said the company’s founder and chief executive Andrew Levy, adding that the proceeds will be used to fund growth in its scheduled services, make "targeted technology investments", and improve the customer experience.
ch-aviation data shows Avelo Airlines' fleet comprises fourteen B737-800s and eight B737-700s.
