US-based start-up carrier Avelo Airlines has raised an additional $42 million in Series B funding, increasing its total capital base to over $160 million.
In a statement, Avelo Founder, Chairman and CEO Andrew Levy announced: ”This additional capital significantly bolsters our already strong balance sheet and enables the acceleration of Avelo’s growth trajectory in 2022 and beyond.”
Avelo disclosed that the airline’s largest shareholder, Morgan Stanley Tactical Value (MSTV), invested more than $30 million in a fresh offering.
“The Morgan Stanley Tactical Value Investing Team is pleased to partner up once again with Avelo Airlines on their recent capital raise,” said Tom Cahill, Managing Director and Co-Head of MSTV, and an Avelo board member.
Low-cost start-up Avelo launched its operations in April 2021, with a debut flight from its West Coast base at Hollywood Burbank Airport (BUR) to Santa Rosa Airport (STS).
The airline currently serves 19 destinations across the US using its fleet of six Boeing 737 NG aircraft. In November 2021, the carrier launched its East Coast base at Tweed-New Haven Airport (HVN), which allowed the airline to connect across six destinations in Florida.
Looking ahead to the future, Avelo plans to expand its fleet by adding nine Boeing 737s by the end of 2022. It also aims to boost its connectivity by doubling its network to at least 40 destinations served across the country.