Avelo Airlines released this report:
As Avelo Airlines approaches the third anniversary of its first flight, the company announced today it completed 2023 with strong year-over-year revenue growth, its first-ever profitable quarter, and one of the lowest cost structures in the U.S. airline industry.
Financial Highlights:
- In 2023, Avelo flew 2.3 million Customers, generating $265 million in revenue – up 74% from 2022.
- Avelo concluded 2023 with a pre-tax fully allocated profit for its fourth quarter.
- Despite ongoing high fuel prices, Avelo’s record monthly pre-tax margin in December 2023 contributed to the company’s Q4 earnings milestone.
- For the full year 2023, Avelo improved its pretax margin by 15 percentage points compared to 2022.
Avelo Airlines Founder, Chairman and CEO Andrew Levy said, “Achieving our first profitable quarter is an exciting and significant milestone in Avelo’s journey. I am confident Avelo’s strong liquidity position, ongoing margin improvement, healthy revenue outlook, industry-leading reliability, and rigorous cost discipline will deliver our first profitable year in 2024. As we approach Avelo’s third anniversary, I am very bullish about our future and the substantial opportunities ahead of us. I am especially appreciative of our dedicated 1,000 Avelo Crewmembers whose One Crew teamwork and friendly Customer focus will ensure Avelo continues to thrive in 2024 and beyond.”
Avelo also said it is establishing the lowest cost structure of any U.S. airline. In Q3 2023, Avelo reported a 6.9 cents stage length-adjusted Cost per Average Seat Mile (CASM) excluding fuel – the lowest in the U.S. airline industry. This improved further in Q4 2023 to 6.6 cents, again one of the industry’s best unit cost outcomes. Avelo achieved this unit cost outcome despite relatively low aircraft utilization of eight hours per day or less.
In January, Avelo earned its #1 on-time performance ranking with 78.81% of all Avelo flights arriving at their destinations within 15 minutes of their scheduled arrival time – the Department of Transportation’s (DOT) standard metric for reporting on-time performance in the U.S. airline industry known as A14. The industry average A14 among all U.S. carriers in January was 72.67% and the #2 airline trailed Avelo with an A14 of 77.8%.
Additionally, in January Avelo achieved the industry’s second-lowest flight cancellation rate of 1.08%, significantly better than the industry average flight cancellation rate in January of 3.51%.
Avelo’s strong January operating results, build on the airline’s 2023 full-year reliability leadership. For the 12-month period between January and December 2023, Avelo achieved the lowest flight cancellation rate (0.18%) in the U.S. airline industry and ranked #2 in on-time reliability (82.80%).
America’s Most Convenient Airline
Avelo currently operates 16 Boeing Next-Generation 737 jetliners (9 189-seat 737-800s and 7 149-seat 737-700s). The airline expects to take delivery of five additional 737s by the end of 2024.
Avelo Airlines also announced it is doubling the number of nonstop destinations it serves from its new base at the Bay Area’s Charles M. Schulz –Sonoma County Airport (STS). With the addition today of Boise, Idaho; Kalispell, Montana; Portland/Salem, Oregon; and Pasco, Washington; Avelo will now serve eight nonstop destinations from STS – offering more nonstop routes than any other airline.
The four new routes will begin in May 2024 and will operate on Boeing Next-Generation 737 aircraft.
Western route map:
Avelo currently offers nonstop service from STS to Las Vegas, Los Angeles/Burbank, Bend/Redmond, Ore., and Palm Springs, Calif.
New Flight Details:
Boise, Idaho via Boise Airport (BOI)
– Begins May 2, and operates Thursdays and Sundays
– One-way fares start as low as $62*
Kalispell., Montana via Glacier Park International Airport (FCA)
– Begins May 1, and operates Wednesdays and Saturdays
– One-way fares start as low as $78*
Portland / Salem, Oregon via Salem Municipal Airport (SLE)
– Begins May 3, and operates Mondays and Fridays
– One-way fares start as low as $62*
Pasco, Washington via Tri-Cities Airport (PSC)
– Begins May 1, and operates Wednesdays and Saturdays
– One-way fares start as low as $62*
Avelo’s New STS Base Opens May 1
Avelo will establish STS as its newest base of operation on May 1, enabling the airline to expand the everyday low fares, convenience, and reliability it introduced to the Bay Area region in April 2021. Avelo will initially base two Boeing Next-Generation 737 aircraft at STS. Avelo expects to employ as many as 50 Crewmembers at STS when the base opens in May. This includes Pilots, Flight Attendants and Aviation Maintenance Technicians.
Avelo Airlines aircraft photo gallery:
