Avelo Airlines, based in Houston, Texas, has become embroiled in controversy after entering into a contract with the U.S. government to assist in the deportation of migrants, making it the first commercial airline to undertake such operations.
The budget carrier initiated deportation flights in mid-May, inciting backlash that intensified in the following weeks. In an April 3 letter to employees, Avelo defended its partnership with the Immigration and Customs Enforcement (ICE) agency, asserting that the collaboration is ‘too valuable not to pursue.’
Since its inception in 2021, Avelo has wrestled with financial issues and was projected to have only about $2 million in cash by June, according to the trade publication Airline Observer. A spokesperson from the airline countered that this reporting was outdated.
Though Avelo has not released the specific terms of its contract with ICE, reports indicate that the airline is utilizing three Boeing 737 aircraft for these flights, out of a total fleet of 20. Earlier this year, Avelo announced it had achieved its first profitable quarter since it began operating but has not published any financial updates since then.
As a private entity, Avelo is not required to share its financial status publicly. The airline’s partnership with ICE was facilitated through CSI Aviation, a third-party contractor that secured $262.9 million in federal contracts, predominantly for ICE operations, for the fiscal year 2025.
While CSI Aviation has not confirmed specifics regarding its contract with Avelo, federal spending records reveal that the company was awarded new contracts in March and received a substantial payment in April, corresponding with the announcement of Avelo’s deportation flights.
Contrary to past practices during the Biden administration, current deportation flights have drawn more public criticism, with observers noting substantial changes in the deportation processes. According to aviation journalist and New Hampshire state lawmaker Seth Miller, earlier deportations involved due process which, in his view, has been compromised under the current administration.
In recent years, ICE has faced scrutiny over its operations. Federal records indicate that the agency awarded $165 million to CSI Aviation for deportation charter flights from January to August this year, raising additional questions about funding allocations to subcontractors like Avelo.
Avelo’s CEO Andrew Levy has maintained that the airline had previously operated similar flights under the Biden administration. However, the level of public discontent differs significantly this time due to the perceived aggressive nature of the current government’s deportation strategies.
In a statement, Levy acknowledged the sensitive and complex nature of the topic but emphasized the importance of the charter flying arrangement in providing stability for Avelo’s operations and workforce.
Connecticut Attorney General William Tong has sought clarification on the details of Avelo’s agreement, to which the airline responded by advising him to file a Freedom of Information Act (FOIA) request. These requests can take extended periods to process, leading to ongoing ambiguity regarding the contract’s specifics.
Al Jazeera attempted to obtain details about the terms of Avelo’s agreement but was met with reluctance from both Avelo and ICE. ICE indicated that it does not share information about future removal flights or schedules due to operational security concerns.
Several lawmakers, including Senator Alex Padilla from California and Senator Richard Blumenthal from Connecticut, have expressed deep concern regarding Avelo’s involvement in ICE deportation activities. Their statements underline worries about the implications of the Trump administration’s harsh immigration policies, which they argue violate the rights of immigrants.
Adding to the pressure, flight attendants working for Avelo have expressed safety concerns, stating that there is no established protocol for emergencies during deportation flights, raising further alarm about potential incidents in the future.
Reports from ProPublica have highlighted issues with ICE Air detainees lacking access to bathrooms during transport, although ICE has denied these claims.
Avelo’s relationship with its largest investor, Morgan Stanley Tactical Value, raises additional questions about how financial backing influences its operational decisions. Tom Cahill, a managing director at Morgan Stanley, serves on Avelo’s board but has refrained from commenting publicly on the current situation.
The airline’s financial woes have reportedly led it to seek further investments, hiring Jefferies Financial Group to help raise approximately $100 million in a new funding round, although Avelo has called this information outdated.
Public outcry following Avelo’s involvement in deportation flights has led to protests at various airports, followed by a Change.org petition demanding a boycott of the airline that has already gathered over 38,000 signatures.
Regarding the backlash, independent strategic communications consultant Hannah Mooney Mack posited that in a corporate environment, decisions are often made weighing financial survival against reputational risks.
Miller has actively campaigned against Avelo’s deportation flights, funding billboards in proximity to Tweed New Haven Airport that discourage potential passengers from flying the airline. The billboards read: ‘Does your vacation support their deportation? Just say AvelNO!’
In response to this campaign, Avelo reportedly persuaded the billboard operator to remove the ads citing copyright violations. Miller subsequently filed a lawsuit against Avelo, arguing that it infringes on his First Amendment rights and emphasizes the importance of raising awareness regarding the airline’s deportation activities.
‘I feel compelled to fight against these actions and inform the public about Avelo’s contract,’ said Miller, echoing the sentiments of many who object to the airline’s participation in the deportation program.
As Avelo navigates through the challenges of public sentiment and financial stability, the implications of its contract with ICE will likely remain a hotly debated topic.
The airline’s future may depend on how effectively it manages this backlash and what financial strategies it employs to sustain its operations amidst mounting public scrutiny.
image source from:https://www.aljazeera.com/economy/2025/5/28/houston-based-avelo-airlines-faces-backlash-for-deportation-flights