Avelo Airlines is ending its participation in US government deportation flights, bringing a close to a controversial chapter that placed the ultra-low-cost carrier in an unfamiliar and politically charged role.
The airline will shut down its base in Mesa, Arizona, on January 27, 2026, and conclude all flying under the Department of Homeland Security’s charter program, the company said. Avelo had operated deportation flights for US Immigration and Customs Enforcement (ICE) through CSI Aviation.
“The program provided short-term benefits but ultimately did not deliver enough consistent and predictable revenue to overcome its operational complexity and costs,” the airline said.
The decision marks a strategic retreat from a business line that was unusual for a publicly branded commercial airline. Deportation flights are typically handled by charter operators that operate largely outside of public view. Avelo, which launched service in 2021, became one of the few scheduled passenger airlines to publicly acknowledge flying removal missions for the government.
Avelo first disclosed the ICE partnership in April 2025, saying at the time that the contract would provide financial stability and support growth. The airline used three Boeing 737-800s to operate domestic and international deportation flights.
That move quickly drew criticism from lawmakers, local officials, and advocacy groups. While Avelo has consistently said the work did not affect customer demand, CEO Andrew Levy later acknowledged that the operation placed the company “in the center of a political controversy,” according to a message to employees cited by CNBC.
The airline now says the underlying issue was economic, not political. Running the deportation flights required dedicated aircraft, specialized scheduling, and crew basing that differed significantly from Avelo’s point-to-point leisure-focused network. For a small carrier with limited fleet depth, the airline said pulling aircraft into government service reduced flexibility elsewhere in the system.
The decision to exit the contract comes as Avelo reshapes its broader operation. The airline said it has recapitalized and is now in a stronger financial position than a year ago, allowing it to refocus on its core business and strengthen its balance sheet.
As part of that reset, Avelo plans to concentrate flying around four bases: New Haven, Connecticut; Wilmington, Delaware; Charlotte, North Carolina; and Central Florida. It will open a new base in McKinney, Texas, later this year while closing bases in Raleigh-Durham and Wilmington, North Carolina. The Mesa base closure is tied directly to the end of the ICE flights.
The airline is also evaluating potential job cuts as it relocates crew members to other bases. Avelo said the number of furloughs remains fluid. Avelo’s flight attendants’ union welcomed the decision to cease the controversial flights.
“We’re hopeful that with the end of the ICE flying and new financing the future is more stable for flight attendants at Avelo,” the union said in a statement.
The end of the deportation contract also comes as Avelo continues to face pressure in some of its legacy markets. Levy has previously told employees that performance in New Haven, one of the airline’s earliest bases, has weakened amid increased competition. The carrier also exited the West Coast last year, shutting down its Burbank base after struggling to gain traction there.