The newest U.S. airlines are showing signs of growth while at the same time hoping the surge in coronavirus infections is only a short-term obstacle.
On Thursday, Avelo Airlines announced that it will expand to a little-used airport in Connecticut that will serve as a jumping-off spot to destinations in Florida. It will be the Houston-based startup’s first venture east of the Rockies.
A day earlier, Utah-based Breeze Airways said it raised $200 million in funding from sources including investment manager BlackRock on top of $135 million in earlier funding.
Avelo and Breeze began flying this spring and targeted leisure travelers. That looked like a smart move when vacationers flocked to airports for much of the summer. Now, however, they worry about the surge in COVID-19, which is hurting ticket sales at bigger airlines including Southwest.
“We saw a little dip in our bookings” as virus cases increased, said David Neeleman, the Breeze founder and CEO who also started JetBlue Airways and Brazilian airline Azul. “We ran a sale, and bookings were back up again.”