Avelo Airlines raises $42 million in Series B funding, talks about its plans for 2022

Avelo Airlines Boeing 737-7H4 WL N703VL (msn 36626) FLL (Tony Storck). Image: 956272.

Avelo Airlines, which became America’s newest mainline airline in nearly 15 years when it took flight last April, today announced it raised $42 million in Series B funding. This second-round offering increases Avelo’s invested capital base to over $160 million.

Avelo raised approximately $125 million in January 2020. The Series B shares sold at a significant premium to the original Series A shares.

An investment fund managed by Morgan Stanley Tactical Value (MSTV) invested an additional $30 million beyond their Series A investment. With this additional significant investment, MSTV is now by far Avelo’s largest shareholder.

This second-round offering was primarily funded by Series A shareholders including Levy, board members (or the entities they represent), and members of management who collectively invested more than $34.7 million.

Executing Today and Investing in Tomorrow

Avelo initiated service on April 28, 2021, from its first base at Hollywood-Burbank Airport (BUR). The airline – which offers a convenient, affordable, and caring experience – currently serves 19 popular destinations across the U.S. with Boeing Next-Generation (NG) 737 aircraft. Avelo launched its East Coast base at Tweed-New Haven Airport (HVN) on November 3, 2021, connecting Southern Connecticut and six popular Florida destinations.

In 2021, Avelo achieved the following milestones:

  • Created over 330 jobs held by Avelo Crewmembers
  • Ended the year with six NG 737s (three 737-700s and three 737-800s)
  • Flew 345,000 Customers on 3,000 flights
  • Delivered a completion factor of 99.8% – canceling only seven flights since its inaugural departure

Avelo shared the following plans for 2022:

  • Avelo has made commitments to add nine more aircraft into its fleet by the end of 2022
  • Avelo plans to more than double its nationwide network of destinations from 19 to at least 40 markets across the U.S.
  • Avelo expects to add more than 450 Crewmembers

Top Copyright Photo: Avelo Airlines Boeing 737-7H4 WL N703VL (msn 36626) FLL (Tony Storck). Image: 956272.

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