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Avelo Airlines, a budget carrier based in Texas, on Monday said it will shut down its West Coast operations at Hollywood Burbank Airport amid financial challenges.
Avelo will reduce its operations at the airport to one aircraft until Dec. 2 before closing its Southern California base, which currently serves 13 routes, the airline said.
“We believe the continuation of service from [Burbank] in the current operating environment will not deliver adequate financial returns in a highly competitive backdrop,” the company said in a statement.
The airline said it will relocate its West Coast fleet to other areas where the company sees more “efficient longer-term growth prospects,” while also bolstering its East Coast operations.
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Avelo Airlines announced it will end its operations at Hollywood Burbank Airport due to financial challenges. (Ernst Peters/The Ledger / USA TODAY NETWORK, File / IMAGN)
Employees in California will be given the opportunity to transfer to another Avelo base, according to the company. Avelo currently operates out of multiple hubs on the East Coast, including airports in North Carolina, Florida, Connecticut and New Hampshire.
An Avelo Airline Boeing 737-700 is featured before departure for its first flight to Orlando, Fla., out of New Castle Airport in Wilmington on Feb. 1, 2023. (Benjamin Chambers/Delaware News Journal / USA TODAY NETWORK / IMAGN)
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Customers with existing flights will be able to cancel their trips online and get a refund.
Avelo’s remaining hubs are located on the East Coast. (Benjamin Chambers/Delaware News Journal / USA TODAY NETWORK, File / IMAGN)
Avelo has faced backlash over signing a contract with the Trump administration to transport migrants to detention centers inside and outside the U.S.
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An airline spokesperson said the protests and its contract with the Department of Homeland Security did not have any effect on its decision to close the base and have not impacted its business.
Reuters contributed to this report.