The American Budget Airline That's Closing Operations On The West Coast

Picking the right airline is crucial if you are planning on traveling and saving some money in the process. Airlines tend to have sneaky fees that can take a bite out of your budget, making it so you end up spending more than you wanted. That's why low-cost, smaller airlines continue to grow in popularity, giving travelers options for when and where to fly without dipping too far into the red when booking.

Unfortunately, one budget airline is ceasing operations on the West Coast. As of mid-July 2025, Avelo Airlines, which had made Burbank Hollywood Airport its main hub since 2021, will stop flying in and out of the West Coast by the end of 2025. The reported reasons for this decision are that Avelo has been under financial strain, and that competition from other small budget airlines– many of which providing similar routes at equal or lesser costs — were too much for the company.

Lots of small and budget airlines have trouble starting out, particularly when stacked up against major competitors, who oftentimes have a better reputation and trusted track record of flying. Still, some like Spirit airlines end up being voted the best airline in America for 2025. Similarly, larger and more famous airlines can stumble — making room for smaller airlines with consumers — like the fact Southwest now has a new fee for checked bags after years of offering two pieces of luggage checked for free.

For Avelo, the problem seems to be that it failed to gain a reputation in the first place. Even though, according to Aviation News Source, the budget airline offered low-cost airfare, nonstop flights to 13 destinations across the western U.S., and had flown over 1 million passengers through Burbank by the end of 2023, Avelo could simply was not a contender in the air travel market, especially against major West Coast carriers. To top it all off, Avelo's brand took a major hit earlier in 2025 when it agreed to transport Immigration and Customs Enforcement (ICE) deportation flights out of Mesa Gateway Airport near Phoenix, Arizona using three of the company's Boeing 737-800 planes.