ISTANBUL

Avelo Airlines has decided to end its deportation flights for the US government and will also scale back its commercial network and workforce, according to a message from its chief executive to employees.

The carrier, which launched in 2021 to link underserved and smaller cities, pulled out of several West Coast markets last year and began operating deportation flights for US Immigration and Customs Enforcement, a move that drew protests and criticism from some lawmakers.

In an email sent to staff this week and obtained by CNBC, CEO Andrew Levy acknowledged the fallout from that decision, saying: “We moved a portion of our fleet into a government program which promised more financial stability but placed us in the center of a political controversy.”

“The program provided short-term benefits but ultimately did not deliver enough consistent and predictable revenue to overcome its operational complexity and costs,” Levy wrote.

Avelo said it will shut down its Mesa, Arizona, base as it phases out its ICE flight operations.

Avelo will return six Boeing 737-700s and close bases at Raleigh-Durham and Wilmington in North Carolina, while continuing flights to both cities.

The changes will lead to job cuts, Levy said, adding: “Some transfer opportunities will be available, but we will need to reduce the number of positions due to our smaller fleet and network.”

The airline will concentrate operations at bases in Connecticut, Florida, Delaware and near Charlotte, North Carolina, and open a new base near Dallas.

Avelo flight attendants’ union welcomed the end of ICE flights, saying it hopes the move and new financing will bring greater stability. The airline said schedule changes will affect many customers and that impacted travelers will be notified. Levy, meanwhile, told staff the carrier has raised significant new capital and is in its strongest financial position yet.