The CEO of travel startup Avelo Airlines didn’t intend to launch the new company during a pandemic. But that’s what happened when the ultra-low-cost carrier took off for the first time in April 2021 as the airline industry was just barely back on its feet after being crushed in 2020.
"Bad luck," CEO Andrew Levy said about the timing.
Over the last year and a half, it’s been a scramble for Levy and his Avelo team as they've battled Covid resurgence, sky high fuel prices and economic uncertainty. And while they haven’t fully come out on the other side, Levy, who served C-level roles at United Airlines (Nasdaq: UAL) and Allegiant Air (Nasdaq: ALGT) prior to buying the company that would become Avelo in 2018, said the startup is on its way to success – and that includes shareholder returns.
For the Triangle, it means bets on air service.
This week, Avelo, based in Houston, Texas, announced new nonstop service from Raleigh-Durham International Airport to Ft. Myers, Florida, will launch in November, its second RDU flight, joining service to New Haven, Connecticut.
Triangle Inno asked Levy what his advice is for entrepreneurs battling the odds.
“Anybody who has done this before knows you really have to be extremely disciplined, extremely focused, obviously build a big team around you, make sure you’re spending your money extremely wisely,” he said.
Levy is careful to say Avelo is not a success story – yet.
“Our story hasn’t yet been told,” he said. “We’re still early in our journey. We have a lot of work to do. We’ve come a long way … but we’re still dealing with challenges here.”
He estimates energy prices have set the firm back between six months to a year. But he says the journey “is a lot of fun.”
“Each day that goes on, the more people we carry on our airplanes,” Levy said. “It gives us more confidence in the market.”
His advice? Trial and error – followed by data. Avelo is about to survey its customers to figure out who they are, what they’re doing and why they’re doing it. And it plans to use that data to figure out where to invest.
As with any startup, product market fit is essential – and you can’t know if it’s sticking without data.
As for Raleigh, Levy said it’s been a “really strong market,” and if the data keeps showing demand, there’s a chance the airline could add additional service down the line.