Avelo Airlines Ends Controversial ICE Flights, Citing Unstable Revenue and Costs
Key Points
- 1Avelo Airlines will cease all participation in the DHS deportation charter program by January 27, 2026, closing its Mesa, Arizona base.
- 2CEO Andrew Levy cited the program's failure to provide 'consistent and predictable revenue' to offset 'operational complexity and costs' as the reason for the decision.
- 3The airline is retiring six Boeing 737-700s, which are reportedly being transferred to Daedalus Aviation Corp, a company supplying planes for ICE's new internal fleet.
The low-cost carrier Avelo Airlines is ending its controversial role in the Department of Homeland Security's (DHS) deportation charter program. The Houston-based budget carrier announced it will conclude all participation in the program by January 27, 2026. This decision follows months of political controversy and public backlash over the flights for U.S. Immigration and Customs Enforcement (ICE).
Business and Operational Complexity
Avelo Airlines CEO Andrew Levy communicated the strategic shift to employees via email. He noted the move into the government program was meant to provide greater financial stability. However, the program ultimately failed to deliver. The CEO stated the arrangement did not provide “enough consistent and predictable revenue to overcome its operational complexity and costs.”
The airline's involvement in the deportation charter program began in May 2025. Avelo was a subcontractor for CSI Aviation, the primary government contractor for ICE air services. The carrier operated three Boeing 737-800s for the flights. The operation was based at Mesa Gateway Airport (AZA) in Arizona.
As part of the shift, Avelo will close its Mesa base on January 27. The airline is also closing bases in Raleigh-Durham and Wilmington, North Carolina. This restructuring aims to simplify the airline's network. The carrier plans to focus on five core bases moving forward.
Fleet Simplification and Aircraft Transfer
The airline is undertaking a budget carrier fleet simplification effort. This includes the retirement of six Boeing 737-700s from its fleet. The company will now primarily operate the larger Boeing 737-800 aircraft.
Reports suggest a direct connection between the retiring aircraft and the DHS program. Online researchers noted that some former Avelo 737-700s are now registered to Daedalus Aviation Corp. Daedalus Aviation is the company supplying ICE with planes for its new internal deportation fleet, known as "ICE Air." This transfer suggests the government may be acquiring its own fleet to reduce reliance on subcontractors.
Industry and Employee Reaction
The decision was met with approval by the Association of Flight Attendants-CWA. The union represents Avelo workers. They stated they had faced “far too much change at our airline.” Union representatives expressed hope that the end of ICE flying would bring greater stability.
- The carrier faced protests and calls for boycotts since April 2025.
- Activists celebrated the end of Avelo’s participation in the program.
- ICE confirmed it never contracted directly with Avelo Airlines.
- DHS will continue to use its contracted service provider, CSI Aviation, and other airlines.
Despite the controversy, Avelo reported strong commercial passenger numbers in 2025. The airline flew a record 2.6 million travelers. This represented an 11% increase over the prior year. CEO Levy also noted the carrier has raised significant new capital. He stated Avelo is now in its strongest financial position yet. The shift allows the airline to focus on its core commercial strategy. This includes preparing for growth with a recent order for up to 100 Embraer 195-E2 aircraft.
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