One of California's go-to budget airlines is ceasing its West Coast operations
On Monday, Avelo confirmed it will cease all West Coast operations by Dec. 2, 2025, ending a four-year run that made the airline a favorite for no-frills fliers hopping between SoCal, NorCal, Oregon and beyond. Once heralded as a post-pandemic disruptor, Avelo's California debut was bold, launching amid COVID-era uncertainty in 2021 with cut-rate fares and routes to underserved airports.
At its peak, Burbank was Avelo's crown jewel, accounting for nearly a third of the airline's passengers. It even flew its one-millionth guest out of BUR in 2023. But as competition tightened and operational costs rose, the airline's West Coast strategy no longer made sense, said CEO Andrew Levy.
'We believe the continuation of service from [Hollywood Burbank Airport] in the current operating environment will not deliver adequate financial returns in a highly competitive backdrop,' Levy told KTLA, noting that Avelo will instead focus on 'more efficient longer-term growth' back East.
The drawdown begins immediately: Burbank will go from a mini-fleet to a solo aircraft by mid-August before disappearing from Avelo's map entirely this winter. The airline's California-based employees have been offered the chance to relocate to one of Avelo's eight other bases, including Hartford, Charlotte and Wilmington (Delaware, not North Carolina), all firmly planted east of the Mississippi.
Passengers with upcoming bookings can cancel online for a refund.
Though some observers have linked the West Coast retreat to recent backlash over Avelo's controversial ICE deportation charter program (operated out of Arizona, not California), the airline insists the decision was purely financial.
Still, the news will sting for budget-minded travelers who once praised Avelo for bringing back some of the simplicity—and affordability—of flying short-haul in California.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Powys County Times
2 hours ago
- Powys County Times
Trump says he plans to put a 100% tariff on computer chips
US President Donald Trump has said he will impose a 100% tariff on computer chips, likely raising the cost of electronics, autos and household appliances. The Republican president said that companies who make computer chips in the US would be spared the import tax. 'We'll be putting a tariff on of approximately 100% on chips and semiconductors,' Mr Trump said in the Oval Office while meeting Apple chief executive Tim Cook. 'But if you're building in the United States of America, there's no charge.' During the Covid-19 pandemic, a shortage of computer chips increased the price of cars and contributed to an uptick in overall inflation. Mr Trump's announcement came as Mr Cook joined him at the White House to announce a commitment by the tech company to increase its investment in US manufacturing by an additional 100 billion dollars (£74.9 billion) over the next four years. 'This is a significant step toward the ultimate goal of ensuring that iPhones sold in the United States of America also are made in America,' Mr Trump said at the press conference. 'Today's announcement is one of the largest commitments in what has become among the greatest investment booms in our nation's history.' As part of the Apple announcement, the investments will be about bringing more of its supply chain and advanced manufacturing to the US as part of an initiative called the American Manufacturing Programme, but it is not a full commitment to build its popular iPhone device domestically. 'This includes new and expanded work with 10 companies across America. They produce components — semiconductor chips included — that are used in Apple products sold all over the world, and we're grateful to the president for his support,' Mr Cook said in a statement announcing the investment. The new manufacturing partners include Corning, Coherent, Applied Materials, Texas Instruments and Broadcom among others. Apple had previously said it intended to invest 500 billion dollars (£374 billion) domestically, a figure it will now increase to 600 billion dollars (£449 billion). Mr Trump in recent months has criticised the tech company and Mr Cook for efforts to shift iPhone production to India to avoid the tariffs his Republican administration had planned for China. While in Qatar earlier this year, Mr Trump said there was 'a little problem' with the Cupertino, California, company and recalled a conversation with Mr Cook in which he said he told the businessman 'I don't want you building in India'. India has incurred Mr Trump's wrath, as the president signed an order on Wednesday to put an additional 25% tariff on the world's most populous country for its use of Russian oil. The new import taxes to be imposed in 21 days could put the combined tariffs on Indian goods at 50%. Apple's new pledge comes just a few weeks after it forged a 500 million-dollar deal with MP Materials, which runs the only rare earths producer in the country. That agreement will enable MP Materials to expand a factory in Texas to use recycled materials to produce magnets that make iPhones vibrate. Speaking on a recent investors call, Mr Cook emphasised that 'there's a load of different things done in the United States'. As examples, he cited some of the iPhone components made in the US such as the device's glass display and module for identifying people's faces and then indicated the company was gearing to expand its productions of other components in its home country. 'We're doing more in this country, and that's on top of having roughly 19 billion chips coming out of the US now, and we will do more,' Mr Cook told analysts last week, without elaborating. News of Apple's latest investment in the US caused the company's stock price to surge by nearly 6% in Wednesday's midday trading. That gains reflect investors' relief that Mr Cook 'is extending an olive branch' to the Trump administration, said Nancy Tengler, chief executive of money manager Laffer Tengler Investments, which owns Apple stock.
Scottish Sun
3 hours ago
- Scottish Sun
Future of chain Claire's on UK high streets uncertain after US parent firm files for bankruptcy
Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) FASHION accessories chain Claire's is facing an uncertain future on UK high streets, after its US parent firm filed for bankruptcy. It is the second time the ear-piercing favourite has declared itself bust, after previously filing for bankruptcy in 2018. Sign up for Scottish Sun newsletter Sign up 1 Claire's is facing an uncertain future after its parent firm filed for bankruptcy Credit: AFP Its finances are now under pressure from weak consumer demand and supply chain uncertainty. The filings showed that the parent business reported liabilities of up to $10billion (£7billion) and owed between 25,000 and 50,000 creditors. Claire's operates 2,750 stores worldwide, including 280 in the UK. While British stores remain unaffected for now, the UK arm has lost £25million over the past three years and is at risk of collapsing into administration later this month. READ MORE ON BUSINESS LAST ORDERS Award-winning UK restaurant chain shuts ALL its sites after nearly a decade It has been working with advisers to explore a sale or restructuring. However, potential buyers, such as Hilco Capital, are understood to have walked away. Retail experts say Claire's is struggling to stay relevant. Julie Palmer, from Begbies Traynor, said: 'Claire's low-price offering is clearly not strong enough to win over its core customers — teens and young adults — as they now have access to a vast array of affordable and convenient products online through platforms like Amazon and Temu.' Claire's boss Chris Cramer said: 'We remain in active discussions with potential strategic and financial partners and are committed to completing our review of strategic alternatives.' Nostalgic 90's retailer files for bankruptcy after chain misses rent payments for June and July 'CORE BLIMEY! MINING giant Glenciore has decided to stick with its London stock listing, scrapping plans to shift to New York, in a win for the City. It has been listed on the FTSE since 2011, when it was valued at £37billion — at the time the exchange's largest float. However, the Swiss-based firm has announced plans to slash £753million in costs by 2026, including job cuts across its 150,000-strong workforce. METRO BANK ON THE UP METRO BANK has bounced back, posting a £43.1million pre-tax profit for the first half of 2025 — up from a £33.5million loss reported in the same period last year. The lender doubled new corporate and small business loans to £1billion, and cut 8 per cent from its costs by axing a third of its workforce and reducing branch hours. Boss Daniel Frumkin said: 'Our strong performance reflects the decisive actions we have taken.' Elsewhere, Sabadell shareholders have approved the £2.65billion sale of TSB to Santander.
The Independent
4 hours ago
- The Independent
Disney announces merger of two of its streaming platforms
Disney plans to fully integrate Hulu into the Disney+ app by 2026, marking the end of Hulu 's era as a standalone streaming platform. Walt Disney Company CEO Bob Iger announced the merger, stating it will create a unified app experience, improve user experience, and boost ad revenue. Users will be able to access Hulu content directly within the Disney+ app, whether through a bundled subscription or by linking their standalone Hulu subscription. Disney also revealed an enhanced ESPN app launching on August 21, available in a bundle with Disney+ and Hulu for $29.99 per month. The company reported increased profits, driven by 2.6 million new streaming subscribers and robust US theme park sales, with combined Disney+ and Hulu subscribers reaching 183 million. Hulu is set to go under major changes as streaming app merges with Disney+
