Avelo Airlines makes historic $4B order for 50 aircraft

On September 10, 2025, Avelo Airlines, an ultra-low-cost carrier based in the United States, announced a significant deal with Brazilian aircraft manufacturer Embraer. The airline placed an order for 50 new E-195-E2 planes, with the option to purchase an additional 50 units in the future. This order is valued at approximately $4.4 billion based on the list price of the aircraft. The deal marks the first U.S. sale of Embraer's new E2 series and positions Avelo as the trailblazer to operate this advanced model in the United States. The E-195-E2 is noted for its efficiency and performance, particularly its ability to operate from shorter runways. Avelo aims to enhance its fleet and network capabilities with these new aircraft. The airline currently has a fleet of only 22 planes, mostly used Boeing 737s, and sees the acquisition as an opportunity to expand operations and improve cost efficiency. Company executives emphasize that the aircraft will allow Avelo to tap into new markets and increase capacity at existing locations. According to statements made during the announcement, Avelo Airlines has expressed enthusiasm about partnering with Embraer to bring an industry-leading aircraft to the U.S. market. Andrew Levy, the founder and CEO of Avelo Airlines, highlighted the onboard comfort and technology that the E-195-E2 offers. Features such as spacious seating configurations, in-seat power ports, and a quieter cabin are expected to enhance the passenger experience, which is essential for a carrier that started its operations in April 2021. Avelo has faced challenges since its inception, including exiting some markets and criticism over its role in transporting deportees for U.S. Immigration and Customs Enforcement. Despite these hurdles, the recent investment and acquisition signify a pivotal moment in the airline's strategy to strengthen its presence in the competitive landscape of low-cost air travel. The delivery of these planes is anticipated to begin in early 2027, marking the beginning of a new chapter for the airline as it aims for growth and enhanced operational capabilities.