Why Did Avelo Airlines End Deportation Flights Contract at Mesa Gateway?
Key Points
- 1Avelo Airlines will cease all DHS charter operations, including ICE deportation flights, by January 27, 2026, closing its Mesa Gateway Airport base.
- 2The airline cited a lack of consistent revenue and high operational complexity, contradicting activist claims that protests forced the decision.
- 3Avelo was a subcontractor to CSI Aviation, the prime government contractor, and dedicated three Boeing 737-800s to the nine-month operation.
Avelo Airlines, a Houston-based low-fare carrier, will cease its participation in the Department of Homeland Security (DHS) charter program. This move effectively ends its role in conducting deportation flights for U.S. Immigration and Customs Enforcement (ICE). The airline is closing its base at Arizona’s Mesa Gateway Airport (AZA) on January 27, 2026. This base was the hub for its government charter operations.
Operational Realignment and Financial Drivers
Avelo's CEO, Andrew Levy, informed employees of the decision via corporate email. The company stated the program did not meet financial expectations. The ICE transports offered "short-term benefits" only. Ultimately, they failed to deliver enough consistent and predictable revenue. This revenue was insufficient to overcome the program's operational complexity and costs.
This termination is part of a broader business realignment strategy. Avelo is closing three operating locations, including Mesa. The carrier is also eliminating some commercial routes. It will return half a dozen of its Boeing 737-800s to lessors. Conversely, the airline recently secured new funding. This places the company in a strong financial position for its size. Avelo is also proceeding with plans to expand into the Dallas area later this year.
The Subcontracting Structure
Media coverage often suggested Avelo had a direct contract with ICE. However, the carrier was a subcontractor for CSI Aviation. CSI Aviation is the prime contractor for DHS charter services. DHS confirmed that ICE never contracted directly with Avelo Airlines. Avelo had dedicated three Boeing 737-800 aircraft to the operation. The company began these flights in May 2025.
Activist Claims Versus Commercial Data
The decision followed nine months of protests and boycotts. Activist groups quickly claimed credit for the contract termination. The Indivisible Project and others suggested the airline was forced to stop. They cited "plummeting sales and canceled commercial flights."
However, Avelo's corporate spokesperson denied that protests were a factor. The low-fare carrier reported a record year for commercial service. Avelo carried 2.6 million customers in 2025. This represented an 11% increase over 2024. The airline's load factor also improved.
This highlights a key challenge in the charter market. Operational complexity and inconsistent demand can undermine profitability. The DHS must now find alternative carriers to fill the gap. The charter market remains a significant part of the U.S. aviation landscape, as reported in commercial aviation news. The International Air Transport Association (IATA) tracks global charter trends. The charter business for government agencies is often lucrative. However, it also carries unique risks and operational challenges. The reliance on subcontractors like CSI Aviation and airlines like Avelo shows the complexity of these operations. For more industry analysis, visit flying.flights.
- Key Takeaways:
- Avelo Airlines is ending its DHS/ICE deportation flights contract.
- The primary reason given is a lack of consistent and predictable revenue.
- Avelo was a subcontractor to CSI Aviation, not a direct ICE contractor.
- The move is tied to closing the Mesa Gateway Airport base and a broader business realignment.
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