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January 7, 2022

Avelo Airlines boosts capital base by $42M as Sarasota flights set to start

PHOTO | CONTRIBUTED Avelo 737 700 aircraft at Tweed prior to the airline's inaugural flight to Florida on Nov. 3, 2021.
By Liese Klein

Avelo Airlines, which operates from Tweed New Haven Airport as its East Coast home base, announced Thursday it had raised $42 million in Series B funding. 

This round boosts Avelo’s invested capital base to over $160 million, the company said. Series A shareholders including executives, board members and members of management collectively invested more than $34.7 million in the latest round.

Avelo Airlines CEO Andrew Levy said, “This additional capital significantly bolsters our already strong balance sheet and enables the acceleration of Avelo’s growth trajectory in 2022 and beyond.”

Morgan Stanley Tactical Value (MSTV) was the largest investor in the round, adding an additional $30 million beyond their Series A stake. The Morgan Stanley investment fund is now Avelo’s largest shareholder by far.

MSTV Managing Director and Avelo board member Tom Cahill said, “Avelo’s recent launch of service from its Tweed-New Haven base is just the latest company success, and with the additional capital in place positions Avelo for an even more exciting future.”

Avelo is scheduled to start three-times-weekly flights to Sarasota from New Haven next week, the last announced Florida destination to go online at Tweed (HVN).

Flights to Palm Beach started last month, and  Fort Lauderdale, Fort Myers, Orlando and Tampa flights launched with the airline’s inaugural Tweed service on Nov. 3. 

Avelo plans to double the amount of destinations it serves nationwide in the coming year, “and some of those will certainly be operated from HVN,” Jim Olson, Avelo chief of communications, said in an email on Friday. 

The airline has committed to buy nine more planes in 2022, some which will be based at Tweed, he added. 

More than 450 new employees are slated to be hired by Avelo in 2022, many to be based in New Haven, Olsen said. 

Contact Liese Klein at lklein@newhavenbiz.com.

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