Avelo Airlines reports first ever full-quarter profit

Avelo Airlines has completed 2023 with ‘strong year-over-year revenue growth’ as the airline records its first ever profitable quarter. Over the course of the year, the US airline flew 2.3 million passengers; generating $265 million in revenue (74% more than in the previous year). Despite ongoing elevated fuel prices, its monthly pre-tax margin in December contributed to the company’s record Q4 earnings. “I am confident Avelo’s strong liquidity position, ongoing margin development, healthy revenue outlook, industry-leading reliability, and rigorous cost discipline will deliver our first profitable year in 2024,” explained Avelo Airlines founder, chairman and CEO Andrew Levy. Avelo also claims to be establishing the lowest cost structure of any US airline: reporting a 6.9 cents stage length-adjusted cost per average seat mile (excluding fuel) in Q3, improving to 6.6 cents in Q4 2023. Describing Avelo’s non-fuel unit costs as half of the US airline industry’s average, chief financial officer Hunter Keay added: “Avelo achieved this profitable outcome – unadjusted and free of special items – despite a high fuel price in the period on the back of a strong demand environment and a low non-fuel cost structure that continues to improve”. In its January 2023 operating results, Avelo also ranked first in on-time performance across the US airline industry, with 78.81% of services arriving at their destinations within 15 minutes of their scheduled time. It also achieved the industry’s second-lowest cancellation rate of 1.08% for the same period.