Avelo Airlines Terminates ICE Deportation Contract Amid Public Pressure

Avelo Airlines has terminated its transportation contract with U.S. Immigration and Customs Enforcement (ICE) for deportation flights, ending a partnership initiated during the Trump administration. The low-cost carrier, which commenced operations in 2021, had become one of ICE's primary air service providers for detainee transfers, operating flights primarily along the East Coast corridor.

Market analysis indicates the contract represented a significant revenue stream for the fledgling airline, estimated at $20-30 million annually. This accounted for approximately 8-12% of Avelo's total revenue during its initial operational years. The airline operates a fleet of 16 Boeing 737 aircraft serving 44 destinations, with deportation flights constituting a substantial portion of its non-passenger revenue.

The decision follows sustained public pressure and protests targeting Avelo's involvement in immigration enforcement. Community opposition peaked in April 2025 when over 150 demonstrators gathered at Connecticut's Tweed New Haven Airport, Avelo's East Coast hub, holding signs reading "BOYCOTT AVELO" and demanding the airline cease deportation flights. Similar protests occurred near other operational bases.

Strategically, the termination reflects Avelo's calculation that reputational damage outweighed financial benefits. Airline industry analysts note that carriers engaged in deportation transport face operational constraints including airport access limitations and potential passenger boycotts. While government contracts typically offer stable revenue, this case demonstrates how political controversy can erode their value proposition.

ICE now faces logistical challenges in securing replacement air transport, with deportation volumes averaging 80,000 annually. Industry sources indicate the agency may need to increase per-flight payments by 15-20% to attract new carriers, potentially adding $5-7 million annually to enforcement costs. The development signals increasing corporate reluctance toward politically sensitive government contracts, even in traditionally compliant aviation sectors.