Avelo Airlines Exits Controversial ICE Deportation Flights Contract

Avelo Airlines is concluding its participation in the Department of Homeland Security (DHS) charter program. The Avelo ends deportation contract will officially cease on January 27. This strategic shift follows months of significant public backlash and protests. The low-cost carrier stated the program did not meet financial expectations. It failed to provide the consistent, predictable revenue needed. The operational complexity and costs were ultimately too high.

Avelo Airlines ICE flights began in May, drawing immediate criticism. The airline was a subcontractor for CSI Aviation, the prime government contractor. The company had previously defended the flights as a financial necessity. CEO Andrew Levy framed the decision as a stability measure. However, the controversy intensified, facing boycotts and union scrutiny.

Strategic Network Restructuring

The exit from the DHS charter program is part of a broader recapitalization plan. Avelo Airlines is reshaping its entire network and fleet. This aims to strengthen the airline's balance sheet and boost budget airline profitability. The airline is removing six Boeing 737-700 aircraft from its fleet. This is a major step in the new Avelo network strategy.

Avelo Base Closures and Consolidation

Multiple operating bases are being closed in January. This includes the Mesa, Arizona base, which was the core for the ICE charters. Other locations closing include Wilmington and Raleigh, North Carolina. The Hartford, Connecticut base will also exit operations. The airline will instead focus on five core bases in 2026. These hubs are New Haven, Connecticut; Wilmington, Delaware; Charlotte/Concord, North Carolina; and Lakeland, Florida. A new base in McKinney, Texas, near Dallas, is planned for late 2026. This strategy focuses on connecting secondary airports. It reinforces the carrier's low-cost model.

The Embraer E195-E2 Order

As part of its fleet modernization, Avelo placed a large order with Embraer. The Embraer E195-E2 order is for 50 firm aircraft. It also includes purchase rights for 50 more jets. This deal is valued at approximately $4.4 billion at list prices. Avelo will be the first U.S. carrier to operate the E195-E2. Deliveries are scheduled to begin in the first half of 2027. The E195-E2 is a smaller regional jet. It marks a significant shift from the airline’s traditional all-Boeing fleet. The new jet offers double-digit fuel savings. Its short-field performance will open new markets. This aircraft choice aligns with Avelo's focus on smaller, secondary airports. The cabin features a comfortable 2x2 seating layout. This eliminates middle seats, enhancing the passenger experience.

Operational and Political Impact

Activists had criticized Avelo's involvement. They noted it was unusual for a scheduled commercial airline to dedicate aircraft to this role. The deportation activity had expanded significantly. Data from Human Rights First showed Avelo operated about 17% of all ICE flights in November 2025. This highlights the carrier's role in the mass deportation system.

Furthermore, the operation faced internal scrutiny. The flight attendant union reported safety concerns to management. They alleged crew were discouraged from performing FAA-required safety checks. The union also noted a lack of aircraft modifications. These modifications would allow restrained passengers to evacuate safely.

This decision is a major development in commercial aviation news. It underscores the challenges for low-cost carriers. They must balance revenue generation with public and political pressures. Avelo is now betting on fleet modernization. It is also relying on a streamlined network for future growth. For more on this and other industry updates, visit our commercial aviation news section.