Avelo Airlines will stop flying deportation flights for the U.S. government and will also cut commercial routes and reduce headcount, its chief executive told staff.
The airline, which debuted in 2021 with a focus on connecting smaller cities, last year exited a host of destinations on the West Coast and also turned to flying deportees for U.S. Immigration and Customs Enforcement, which sparked protests and backlash from some politicians.
“We moved a portion of our fleet into a government program which promised more financial stability but placed us in the center of a political controversy,” CEO Andrew Levy said in an email to employees late Tuesday, which was seen by CNBC.
“The program provided short-term benefits but ultimately did not deliver enough consistent and predictable revenue to overcome its operational complexity and costs,” Levy wrote.
Avelo said it would close its base in Mesa, Arizona, as ICE flights end. ICE didn’t immediately respond to a request for comment.
