Avelo Airlines is an American ultra-low-cost airline based in Houston, Texas. It was founded as Casino Express Airlines, later becoming Xtra Airways, before rebranding as Avelo Airlines on April 8, 2021, and commencing scheduled flights on April 28, 2021. The inaugural flight operated from Hollywood Burbank Airport to Charles M. Schulz–Sonoma County Airport.
New Haven prohibited using public funds for Avelo Airlines due to concerns over deportation flights. PRU Black Wall Street also ended its sponsorship, joining the city's boycott. Controversy surrounds Avelo's involvement in deportation activities.
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 Elko, Nevada.
In 1999, Casino Express Airlines operated one Boeing 737-200 jetliner for the start-up airline Tahoe Air, which 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.
From 2007, Xtra Airways dedicated two Boeing 737-400 aircraft to fly for Direct Air, an airline business based in Myrtle Beach, South Carolina.
Through 2012, Xtra Airways had dedicated two Boeing 737-400 aircraft to fly for Direct Air.
In 2015, Xtra Airways updated 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, and soon chartered a second aircraft with "Clinton/Kaine" titles.
In August 2018, Andrew Levy acquired Xtra Airways with the intention of transforming it into an ultra-low-cost carrier.
In April 2019, Xtra Airways was considering operating Boeing 737-800s as part of its transformation.
In February 2020, Andrew Levy announced the new holding company for Xtra Airways, named Houston Air Holdings, Inc., reflecting the company's Houston headquarters. The company also raised US$125 million in funding and received its first airplane from GE Capital Aviation Services.
On April 8, 2021, Casino Express Airlines officially rebranded as Avelo Airlines, marking its transition to scheduled operations.
On April 28, 2021, Avelo Airlines operated its first scheduled flight 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, investing US$1.2 million in facilities and using Boeing 737-700 aircraft.
By May 20, 2021, Avelo Airlines began launching its initial route network of eleven unserved destinations from Burbank, California.
On June 1, 2021, in response to Avelo's entry into scheduled flight operations, Alaska Airlines announced a new service between Burbank and Santa Rosa.
On July 7, 2021, Avelo Airlines announced that it would terminate its flights to Bozeman and Grand Junction by the end of September.
By 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 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.
In April 2022, Avelo Airlines established a new base at Orlando International Airport.
In October 2022, Avelo Airlines established a new base at Wilmington, Delaware's New Castle Airport.
In November 2022, Avelo Airlines established a new base at Raleigh–Durham International Airport.
In September 2023, Avelo Airlines established a base at Las Vegas's Harry Reid International Airport.
In February 2024, Avelo Airlines announced plans to add five additional aircraft to its fleet, all obtained from bankrupt Brazilian airline GOL.
In May 2024, Avelo Airlines 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 with the U.S. Department of Homeland Security's Immigration and Customs Enforcement agency to support deportation efforts.
On May 12, 2025, Avelo Airlines commenced "removal" flights and opened a new base at Mesa Gateway Airport in Arizona.
On July 14, 2025, Avelo Airlines announced it would close its Burbank base and cease all operations on the West Coast by December, citing market conditions.
As of July 2025, Avelo Airlines operates an all-Boeing 737 fleet.
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