Avelo: Wilmington expansions and what it signals
Avelo's New Routes: Is Delaware Finally Taking Off?
Avelo's Expansion: A Drop in the Bucket?
Avelo Airlines is expanding its service from Wilmington, Delaware, adding routes to Atlanta and Chicago. On the surface, this sounds like good news for Delaware travelers, who have long faced limited flight options. But let's pump the brakes on the celebration for a moment and look at the numbers.
Wilmington Airport (ILG) has struggled for years to attract consistent passenger traffic. Frontier pulled out in 2015. Southwest gave it a shot for a while. The problem? Location, location, location. Philadelphia International Airport (PHL) is a mere 20 miles away, offering a vastly larger selection of flights and, crucially, lower fares due to higher volume.
Avelo's entry into the market was initially promising, offering routes to Florida destinations. But adding Atlanta and Chicago? These are already heavily served markets from PHL. The question isn’t whether Avelo can fly these routes, but whether they can do so profitably, given the proximity of a major hub airport.
The Allure of Underserved Markets
Avelo's strategy seems to be targeting underserved markets, which makes sense in theory. But underserved doesn't necessarily mean profitable. It often means underserved for a reason. Are there enough Delaware residents willing to choose ILG over PHL, even with slightly cheaper fares or the convenience of a smaller airport? That's the multi-million dollar question.
And this is the part of the analysis that I find genuinely puzzling: Avelo is a relatively small airline. They don't have the deep pockets of a Delta or United to weather sustained losses on marginal routes. They need these routes to be profitable, or at least break even, relatively quickly. Launching routes into markets already dominated by major carriers seems… ambitious, to put it mildly.
How was the market research conducted? What passenger volume projections justify this expansion? Details on the route profitability projections remain scarce, but the competitive landscape is clear.
One factor potentially working in Avelo's favor is the increasing frustration with major airline hubs. The delays, the crowds, the nickel-and-diming for every amenity – it all adds up. Perhaps Avelo is betting on a segment of travelers willing to pay a slight premium for a more relaxed travel experience.
But let's be real: convenience only goes so far when you're talking about price-sensitive leisure travelers. And business travelers, who are less price-sensitive, are likely already loyal to the major carriers and their frequent flyer programs.
Is This Time Different?
Avelo's new routes could be a sign of Delaware's resurgence as a travel hub, but the odds are stacked against them. They're a small fish in a big pond, competing against airlines with far more resources and established customer bases. The airline is hoping for a 30% increase in passengers—to be more exact, 32%. Avelo Airlines adding flights between Wilmington and 2 major cities - The Business Journals
The success of this expansion hinges on execution, marketing, and a healthy dose of luck. (And maybe a major operational meltdown at PHL that drives travelers to seek alternatives.) Avelo needs to convince Delaware residents that flying from ILG is not just convenient, but also a smart financial decision.