Avelo Airlines is an American ultra low-cost airline headquartered in Houston, Texas. Initially known as Casino Express Airlines and Xtra Airways, it rebranded to Avelo Airlines on April 8, 2021, marking its transition to scheduled operations. The airline commenced its first scheduled flight under the Avelo name on April 28, 2021, flying from Hollywood Burbank Airport to Charles M. Schulz–Sonoma County Airport.
On July 20, 1987, Casino Express Airlines was established.
In 1989, Casino Express Airlines began operations using Boeing 737-200 jetliners, flying exclusively for the Red Lion Hotel and Casino.
In 1999, Casino Express Airlines operated one Boeing 737-200 jetliner for the start-up airline Tahoe Air, providing scheduled passenger air service with nonstop 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 a broader focus.
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.
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 2015, Xtra Airways changed its aircraft livery to an executive jet style, displaying flag blue and red stripes.
In September 2016, Xtra Airways began operating a Boeing 737-800 for Hillary Clinton's 2016 presidential campaign, later adding a second Boeing 737-400 aircraft also chartered by the campaign.
In August 2018, Andrew Levy acquired Xtra Airways with the intent of transforming it into an ultra low-cost carrier.
By April 2019, Xtra Airways was considering operating Boeing 737-800s.
In February 2020, Andrew Levy announced the new holding company for Xtra, named Houston Air Holdings, Inc., and the company raised US$125 million in funding.
On April 8, 2021, Casino Express Airlines rebranded as Avelo Airlines, transitioning to scheduled operations.
On April 28, 2021, Avelo Airlines operated its first scheduled flight under the new name, traveling from Hollywood Burbank Airport to Charles M. Schulz–Sonoma County Airport.
On May 6, 2021, Avelo Airlines announced that it would open a new base at Tweed New Haven Airport in Connecticut during the third quarter of 2021.
By May 20, 2021, Avelo Airlines' initial route network consisting of 11 unserved destinations from Burbank, was nearing completion after launching between April 28 and May 20, 2021.
On June 1, 2021, Alaska Airlines announced a new service between Burbank and Santa Rosa in 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, details of Avelo Airlines' operations at its New Haven base were revealed, initially with four routes between New Haven and destinations in Florida announced to launch during November 2021.
During November 2021, Avelo Airlines launched operations at its New Haven base, with initial routes between New Haven and destinations in Florida.
On January 6, 2022, Avelo Airlines announced that it had raised an additional US$42 million.
On April 14, 2022, the Association of Flight Attendants was certified as the exclusive representative of all of Avelo's 14 flight attendants.
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 base at Raleigh–Durham International Airport.
In September 2023, Avelo 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, all obtained from bankrupt Brazilian airline GOL.
In May 2024, Avelo relocated its base from Las Vegas to 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.
Avelo had only started servicing Portland in January 2025.
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.
On May 12, 2025, Avelo Airlines commenced "removal" flights with a new base out of Mesa Gateway Airport in Arizona for the U.S. Department of Homeland Security's Immigration and Customs Enforcement agency.
On July 14, 2025, Avelo announced it would close its Burbank base and cease all operations on the West Coast by December, citing market conditions.
On July 25, 2025, the city of New Haven prohibited the use of public funds for any travel on Avelo Airlines, stating that profiteering from "inhumane and often illegal immigration policies" was "antithetical to our values as a city."
On September 10, 2025, Embraer announced a large order of their new E195-E2 aircraft by Avelo. The firm order was placed for 50 new aircraft with an additional option for 50 more.
On October 15, 2025, security researcher Alex Schapiro notified Avelo about a critical vulnerability in their online reservation system.
On November 13, 2025, Avelo deployed fixes for a critical vulnerability in their online reservation system.
On November 20, 2025, security researcher Alex Schapiro published a report detailing a critical vulnerability in Avelo's online reservation system.
On January 8, 2026, Avelo announced it would cease operating deportation flights on January 27, 2026.
On January 27, 2026, Avelo ceased operating deportation flights.
In 2027, Avelo Airlines expects to begin receiving deliveries of the Embraer E195-E2 aircraft.
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