Spirit Airlines has been struggling lately, with the carrier actually filing for Chapter 11 bankruptcy to restructure its debts and try to bolster its financial situation.
A failed merger with JetBlue, combined with mounting competition among discount airlines, had caused its losses to accumulate and made restructuring necessary.
While the airline has now emerged from Chapter 11 and hopes to move forward on firmer financial footing by making some changes, including adding new premium offerings, it remains to be seen how Spirit Airlines will fare in these uncertain economic times.
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More premium carriers may be turning a corner — Delta Air Lines, for example, had better-than-expected earnings in the second quarter of 2025 and reaffirmed its full fear financial outlook, causing its stock price to surge.
Yet it’s not clear whether discount airlines like Spirit will do as well, given that their customers may be more price-conscious and more affected by economic fluctuation.
In fact, Spirit is not the only discount airline facing financial headwinds. And now, citing financial concerns, one of its top rivals has decided to pull out of an airport that Spirit also services.
While this isn’t great news for the Spirit competitor, it could help Spirit, which will no longer have to worry about this airline capturing business from the no-frills flyers who are its bread and butter.
Of course, customers who were counting on flights from this other airline are the ones who will pay the price, with canceled routes and fewer options going forward.
Image source: Shutterstock
This Spirit Airlines rival is permanently giving up flying to this major airport
So, which airline is pulling out? Avelo Airlines.
One of Spirit’s top rivals in the budget-friendly travel space, Avelo has a slightly different strategy, focusing on smaller, underserved airports.
Avelo launched in 2021, along with Breeze Airlines, another discount carrier. Now, like Spirit, the airline is facing some financial struggles of its own. And it has made the decision to pull out of a major U.S. airport because of it.
Avelo is currently operating in a variety of smaller airports. Some examples include Lakeland International Airport (LAL) in Central Florida, Raleigh-Durham International Airport (RDU), Sonoma County Airport (STS) in the Bay Area, Tweed-New Haven Airport in Connecticut, and Wilmington Airport (ILG) where it’s serving Philadelphia and the Delaware Valley.
Related: Southwest Airlines cancels hundreds of flights from July to Sept.
Unfortunately, Avelo announced recently that it would be closing the hub it has been operating in Hollywood Burbank Airport (BUR) in Los Angeles. The reason: It is not delivering “adequate financial returns” for the airline.
Avelo Airlines shifts focus amid decline in customer demand
Avelo had shifted its focus to the West Coast in April of 2021, adding Hollywood Burbank Airport (BUR) as a West Coast hub. The company was running 49 weekly flights out of Burbank to 11 different destinations. In total, this meant it accounted for 13% of the seat capacity for Burbank Airport.
Now, however, it is closing that hub for good. Operations will be phased out starting in mid-August, and by December 2, 2025, Avelo Airlines will shut down its Burbank airport hub altogether.
Related: United Airlines cancels routes permanently, offers refunds
“This was not an easy decision,” Avelo CEO Andrew Levy said in a statement. “Our company’s deepest operational roots are in BUR, having launched our first flight there over four years ago during the Covid pandemic.”
The change is part of Avelo’s broader strategy to focus on bases in the East Coast, as well as to expand internationally, including adding new flights from Hartford’s Bradley International Airport to Montego Bay, Jamaica. Still, Avelo has also made some cuts on the East Coast, too, including opting out of scaling up a new base in Concord-Padgett Regional Airport.
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For its part, Spirit will continue to fly from Burbank to several destinations, including flights from Burbank to Las Vegas; Portland, Oregon; Dallas, Texas, and many more.
With Avelo Airlines closing its Burbank Hub, Spirit will likely reap the benefits, but customers who have to change their travel plans will pay the price.
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