Avelo Airlines is an American ultra-low-cost airline based in Houston, Texas. Rebranded from Xtra Airways, previously Casino Express Airlines, Avelo began scheduled operations on April 28, 2021, with its first flight from Hollywood Burbank Airport to Charles M. Schulz–Sonoma County Airport. The airline focuses on providing affordable air travel options to underserved markets.
Avelo Airlines' partnership with ICE Air to transport detainees has ignited controversy, drawing protests and raising ethical questions regarding detainee welfare and the airline's role in deportation processes. The partnership faces strong condemnation.
On July 20, 1987, Casino Express Airlines was established. It would begin operations in 1989.
In 1989, Casino Express Airlines began operations using Boeing 737-200 jetliners, exclusively flying for the Red Lion Hotel and Casino in Elko, Nevada.
In 1999, Casino Express Airlines operated one Boeing 737-200 jetliner for the start-up airline Tahoe Air. Tahoe Air provided scheduled passenger air service with non-stop flights from the South Lake Tahoe Airport to Los Angeles International Airport and San Jose International Airport.
On December 8, 2005, Casino Express changed its name to Xtra Airways to reflect its broader customer focus beyond casinos.
From 2007 through 2012, Xtra Airways dedicated two Boeing 737-400 aircraft to fly for Direct Air, an airline business based in Myrtle Beach, South Carolina.
In 2012, Xtra Airways ended its dedication of two Boeing 737-400 aircraft to fly for Direct Air.
In 2015, Xtra Airways changed its aircraft livery to an executive jet style, featuring flag blue and red stripes.
In September 2016, Xtra Airways began operating a Boeing 737-800, repainted with "Stronger Together" titles, for Hillary Clinton's 2016 presidential campaign. A second aircraft, a Boeing 737-400, was also chartered by the campaign, painted with "Clinton/Kaine" titles.
In August 2018, Andrew Levy, former President of Allegiant Air and CFO of United Airlines, acquired Xtra Airways with the intent of transforming the charter airline into an ultra-low cost carrier.
By April 2019, Xtra Airways was considering operating Boeing 737-800s as part of its transformation into an ultra-low cost carrier.
In February 2020, Andrew Levy announced the new holding company for Xtra, named Houston Air Holdings, Inc., reflecting the company's Houston headquarters. In the same month, the company raised US$125 million in funding and received its first airplane from GE Capital Aviation Services.
On April 8, 2021, Casino Express officially rebranded as Avelo Airlines and announced its transition to scheduled flight operations. Simultaneously, the airline began selling tickets for flights based at Hollywood Burbank Airport in California.
On April 28, 2021, Avelo Airlines operated its inaugural flight from Hollywood Burbank Airport to Charles M. Schulz–Sonoma County Airport, marking its first scheduled flight under the new brand.
On May 6, 2021, Avelo Airlines announced it would open a new base at Tweed New Haven Airport in Connecticut during the third quarter of 2021, investing US$1.2 million toward the airport's facilities.
By May 20, 2021, Avelo Airlines had launched its initial route network consisting of eleven unserved destinations from Burbank.
On June 1, 2021, Alaska Airlines announced a new service between Burbank and Santa Rosa as a competitive response to Avelo's entry into scheduled flight operations.
On July 7, 2021, Avelo Airlines announced it would terminate its flights to Bozeman and Grand Junction by the end of September.
On July 29, 2021, Avelo Airlines announced an additional five destinations including Fort Collins, Las Vegas, Monterey, Provo, and St. George, although the planned flights to Monterey, Provo, and St. George were later cancelled.
On August 19, 2021, Avelo Airlines revealed details of its operations at its New Haven base, initially announcing four routes between New Haven and destinations in Florida set to launch during November 2021.
In November 2021, Avelo Airlines launched operations at its New Haven base, with four routes between New Haven and destinations in Florida.
On January 6, 2022, Avelo Airlines announced that it had raised an additional US$42 million, increasing its invested capital base to over US$160 million.
On April 14, 2022, the Association of Flight Attendants was certified as the exclusive representative of all of Avelo's 14 flight attendants after a vote under the Railway Labor Act was conducted by the National Mediation Board.
In April 2022, Avelo established a new base at Orlando International Airport.
In October 2022, Avelo established a new base at Wilmington, Delaware's New Castle Airport.
In November 2022, Avelo established a new base at Raleigh–Durham International Airport.
In September 2023, the airline established its sixth base at Las Vegas's Harry Reid International Airport.
In February 2024, Avelo announced plans to add five additional aircraft to its fleet, sourced from bankrupt Brazilian airline GOL. Additionally, it unveiled its biggest network expansion to date, with 18 new routes, new bases at Hartford's Bradley International Airport and Lakeland Linder Airport, as well as the launch of international service to the Dominican Republic and Mexico for the first time.
In May 2024, Avelo relocated its base from Las Vegas's Harry Reid International Airport to Charles M. Schulz–Sonoma County Airport in Santa Rosa.
By the end of 2024, Avelo had expanded its service from New Haven to 26 destinations, making the airport its largest base.
In April 2025, Avelo Airlines signed an agreement for a long-term charter program flying for the U.S. Department of Homeland Security's Immigration and Customs Enforcement agency to "support the department's deportation efforts," The airline will be opening a new base out of Mesa Gateway Airport in Arizona, with removal flights scheduled to commence on May 12, 2025. The airline simultaneously announced it was ceasing service to and from Boise, Idaho effective April 27.
As of April 2025, Avelo Airlines operates an all-Boeing 737 fleet.
On May 12, 2025, Avelo Airlines is scheduled to commence "removal" flights from its new base at Mesa Gateway Airport in Arizona, under a charter program agreement with the U.S. Department of Homeland Security's Immigration and Customs Enforcement agency.
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