Budget Airline To Cut All Flights To Us City Amid Low Demand, No Refunds

Established in 2021 with the business model of serving secondary cities with not enough demand to be picked up by larger mainstream airlines, Houston-based Avelo Airlines over the next four years expanded to a peak network of 48 domestic destinations and five international ones.

But over the last year, the ultra-low-cost airline has struggled with both traffic on routes that were initially supposed to prove popular as well as reputational problems over choosing to take on contracts to run migrant deportation flights for the federal government.

In August, Avelo fully suspended its West Coast operations by shutting down bases in Hollywood Burbank Airport (BUR) and Charles M. Schulz Airport (STS) in Sonoma Country, while also cutting its remaining California flights to Harry Reid International Airport (LAS). 

An Avelo spokesperson said that routes from these cities failed to "produce the results necessary to continue our presence there."

Avelo runs last flight between New Haven and Portland, shuts down Maine hub

A month after the major market exits and flight cuts were announced, Avelo quietly scrapped a flight that it launched only three months ago: a route between Tweed New Haven Airport (HVN) in Connecticut and Portland International Jetport Airport (PWM) in Maine taking slightly over an hour gate to gate.

"Avelo Airlines will not return to Portland, Maine (PWM) next year," watchdog account Ishrion Airlines posted on social media platform X while citing low passenger load factors as the primary reason behind the decision.

Related: Budget airline says it will keep running deportation flights

Running twice a week on a Boeing 737-700  (BA) , the route had an average occupancy of 21% in the direction from New Haven to Portland and just 11% on the return flight back to Connecticut.

Initially eying an untapped market for flights out of southern Connecticut, Avelo launched the Portland flight on May 21 before running the final one on Aug. 31. As the New Haven route was the only flight out of the regional airport, the quiet cancellation means that Avelo has left the Maine market entirely.

"There is rarely one singular reason why decisions like this are made, and this one is no different," Avelo CEO Andrew Levy said in July 2025 on the route cuts announced then.

Image source: Shutterstock

Avelo seasonal route not coming back: What does this mean for refunds?

The Avelo New Haven flight was designed as a seasonal route always meant to be retired by the end of the summer; the initial goal was to judge uptake numbers to see whether it was worth bringing back in the upcoming year.

The cancellation scoop from Ishrion has yet to be formally confirmed by the airline. However, the flight's seasonal status means that travelers do not require refunds, since they could not have booked it beyond the last day it was run.

More on travel:

• Another regional airline cancels all flights, no refunds
• US government issues sudden warning on Switzerland travel
• Another country just issued a new visa requirement for visitors

The standard for cancellations of flights with scheduled departures as part of a wider network shakeup is for the airline to contact any passengers with booked seats for a refund. 

On its website, Avelo states that anyone for whom "the next available flight time is not a viable option" can "cancel the reservation on the impacted flight and refund your purchase to your original form of payment."

(The Arena Group will earn a commission if you book a trip.)

Make a free appointment with TheStreet’s Travel Agent Partner, Postcard Travel, or email Amy Post at amypost@postcardtravelplanning.com or call or text her at 386-383-2472.

Related: JetBlue cuts flights to two airports, offers refunds