Avelo Airlines Looks to Car, Hotel Partnerships After ICE Controversy

Nearly four months after Avelo Airlines ended its controversial partnership with Immigration and Customs Enforcement, CEO Andrew Levy said the company is considering rental car and hotel partnerships to boost its bottom line.

Levy told Skift Wednesday during an industry event in Charleston that the bundled products would most likely launch in the first half of 2027. The move is similar to that of Allegiant, which partners with several car rental and hotel companies to offer customers deals on rates. So far, Avelo has rolled out a travel insurance partnership and subscriptions service.

Such partnerships are common in the airline industry because they drive more ancillary revenue and create more customer loyalty. Avelo's experience is a case study for the broader ultra-low-cost category, which has been under pressure from thin margins, shrinking networks, and a premium pivot that's re