Avelo Airlines has reached a significant milestone in its financial journey, announcing its first-ever profitable quarter as it approaches its third anniversary. This achievement comes at the end of a year marked by strong revenue growth and exemplary cost discipline, establishing Avelo as a key player in the U.S. airline industry with one of the lowest cost structures nationwide.
In 2023, Avelo served 2.3 million customers and generated $265 million in revenue, a 74% increase from the previous year. The airline’s rigorous focus on cost efficiency and customer satisfaction contributed to this remarkable growth. Specifically, Avelo reported a pre-tax fully allocated profit for its fourth quarter, despite the challenges of high fuel prices.
Andrew Levy, Avelo Airlines Founder, Chairman, and CEO, expressed his enthusiasm for the company’s achievements and future prospects. He stated, “Achieving our first profitable quarter is an exciting and significant milestone in Avelo’s journey. I am confident Avelo’s strong liquidity position, ongoing margin improvement, healthy revenue outlook, industry-leading reliability, and rigorous cost discipline will deliver our first profitable year in 2024.”
The airline’s commitment to efficiency is further evidenced by its stage length-adjusted Cost per Average Seat Mile (CASM) excluding fuel, which stood at 6.9 cents in Q3 2023, the lowest in the U.S. airline industry. This figure improved to 6.6 cents in Q4 2023, reflecting Avelo’s continuous efforts to minimize expenses while maintaining high-quality service.
Hunter Keay, Avelo Airlines Chief Financial Officer, highlighted the significance of Avelo’s low-cost structure, especially in a high-inflation environment. “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,” he said.
Avelo’s success is not limited to financial performance. The airline has also demonstrated industry-leading reliability, with the highest on-time performance and one of the lowest flight cancellation rates in the U.S. airline industry. For January 2023, Avelo earned the #1 ranking for on-time performance and the second-lowest flight cancellation rate.
Greg Baden, Avelo Airlines Chief Operating Officer, attributed this reliability to the airline’s focus on customer satisfaction. “A cornerstone of the Customer-satisfying convenience distinguishing Avelo is the dependable reliability of our operation,” he explained.
As Avelo Airlines continues to focus on operational efficiency, low-cost fares, and reliable service, the company is well-positioned for future growth and success in the highly competitive aviation industry.
