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Turbulent times for Avelo Airlines result in its departure from Sonoma’s regional airport

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SONOMA COUNTY’S REGIONAL AIRPORT will see the departure of Avelo Airlines, which announced it faces operational headwinds, but the airport’s leadership remains optimistic in their ability to continue growing for local travelers.

Passengers transiting through Charles M. Schultz-Sonoma County Airport will have fewer options after Avelo Airlines announced it will suspend all service to the airport on Aug. 11, leaving the airport with two commercial airlines, Alaska Airlines and American Airlines. 

In its Monday announcement, Avelo mentioned it would be shutting down its base operations at Hollywood Burbank Airport, effectively closing all its operations on the West Coast of the U.S.

“We believe the continuation service from BUR in the current operating environment will not deliver adequate financial returns in a highly competitive backdrop,” said Avelo communications manager Courtney Goff in a press release. “Despite the investment of significant time, resources and efforts, our West Coast operations have not produced the results necessary to continue our presence there.” 

Avelo Airlines quickly became the airport’s second largest operator, after Alaska, with about 24% of the share of the total number of passengers traveling to Santa Rosa as of April of this year. It began service in 2021, advertising itself to locals as a better and cheaper alternative to those looking to avoid headaches associated with traveling to the Bay Area’s larger international airports. 

Signs for commercial airlines, Alaska, Avelo, and American, hang at Charles M. Schulz–Sonoma County Airport in Santa Rosa, Calif., on Wednesday, July 16, 2025. Avelo announced it is suspending all operations at the Sonoma County airport on August 11, 2025. (Andres Jimenez Larios/Bay City News)

As of recently, its website touts its operations in Santa Rosa as “a hassle-free and convenient travel experience.”

The news of the airline’s departure slightly surprised airport manager Jon Stout but did not shock him. He had already seen Avelo significantly scale back its operations at the airport on May 1 when the airline removed aircraft and crews from Santa Rosa, so a decision to pull out altogether was not out of the blue. However, according to Stout, the airline’s decision to suspend service came swiftly. 

“We got a call Monday morning saying this is what they are doing. They then reached out to reporters later Monday morning, so not a lot of advanced warning,” said Stout.

Financial data from the federal Department of Transportation’s Bureau of Transportation Statistics show Avelo reported a net loss of $17 million in the first quarter of 2025, its highest loss in a quarter. 

Stout said the economic impact to the airport of the airline’s departure will remain relatively small. He said the airport has a diverse revenue base with income coming from parking, businesses, and the other airlines that offer more frequent service.

Stout also adds that the airport’s other airline partners plan on increasing service throughout the year, effectively counteracting the loss in number of flights to Santa Rosa. 

About 20 employees continue to work for Avelo at the airport as either check-in or ramp agents. Staff were instructed to direct all questions to the communications department, but Stout revealed Avelo employees were offered to transfer to different sites while some airport partners offered to hire some laid-off individuals.  

An Avelo Airlines Boeing 737-7H4 (N181SY) lands at Charles M. Schulz–Sonoma County Airport in Santa Rosa, Calif., after completing a flight from Kalispell, Mont., on Wednesday, July 16, 2025. The airline announced it is suspending all operations at the Sonoma County airport on Aug. 11, 2025. (Andres Jimenez Larios/Bay City News)

Left: An Avelo Airlines Boeing 737-7H4 (N181SY) lands at Charles M. Schulz–Sonoma County Airport in Santa Rosa, Calif., after completing a flight from Kalispell, Mont., on Wednesday, July 16, 2025. Right: An Alaska Skywest Embraer E175LR (N181SY) parks at Charles M. Schulz–Sonoma County Airport in Santa Rosa, Calif., after completing a flight from Santa Ana, Calif., on Wednesday, July 16, 2025. (Andres Jimenez Larios/Bay City News)

“[The airline has] been offering them opportunities to go to the East Coast at some of their other airport operations and hubs,” said Stout.

Besides financial headwinds, Avelo has also come under fire from immigrant rights groups across the country after contracting with the U.S. Department of Homeland Security and Immigration and Customs Enforcement to deport migrants from Mesa, Arizona

Local groups like Indivisible Sonoma County have previously protested at the airport as well as other groups across the country displeased with the company’s deportation flights.

Residents employed with Avelo are not the only ones disappointed to see the airline leave. Travelers like Dana Johnson from Santa Barbara said he did not know the airline was going to suspend services, until passengers on his flight from Kalispell, Montana brought up the subject. 

“I woke up at the end of the flight and there was somebody who was like, ‘Oh, I’m not gonna be able to do this.’ So many people on the plane were talking about it and upset,” said Johnson. “This flight’s pretty much full. Just raise prices if you needed to be here.” 

According to Avelo, travelers who have trips booked past Aug. 11 should check their reservation online to receive a refund. 



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Kuwait, India expand aviation pact, increasing weekly seat capacity to 18,000 – Gulf News

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Kuwait, India expand aviation pact, increasing weekly seat capacity to 18,000  Gulf News



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CAPA’s ‘strike’ articles count is not rising with airline profits. Labour remains cautious

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Analysis

The confidence of aviation labour organisations to claim a greater share of industry profits when margins rise appears to be lower than it was before the COVID-19 crisis.

Historically, the number of news articles on the CAPA – Centre for Aviation website mentioning the word ‘strike’ has broadly followed the rise and fall of airline industry operating profit margins.

However, the number of CAPA – Centre for Aviation ‘strike’ articles has not increased in line with margins in the aftermath of the COVID-19 pandemic.

Moreover, in spite of IATA‘s forecast of a slight margin improvement in 2025, the number of articles halved in 1H2025 versus the same period of last year 2024.

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Returns At InterGlobe Aviation (NSE:INDIGO) Are On The Way Up

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Did you know there are some financial metrics that can provide clues of a potential multi-bagger? One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing amount of capital employed. If you see this, it typically means it’s a company with a great business model and plenty of profitable reinvestment opportunities. So when we looked at InterGlobe Aviation (NSE:INDIGO) and its trend of ROCE, we really liked what we saw.

Understanding Return On Capital Employed (ROCE)

For those who don’t know, ROCE is a measure of a company’s yearly pre-tax profit (its return), relative to the capital employed in the business. Analysts use this formula to calculate it for InterGlobe Aviation:

Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets – Current Liabilities)

0.13 = ₹110b ÷ (₹1.2t – ₹342b) (Based on the trailing twelve months to March 2025).

So, InterGlobe Aviation has an ROCE of 13%. On its own, that’s a standard return, however it’s much better than the 8.4% generated by the Airlines industry.

View our latest analysis for InterGlobe Aviation

NSEI:INDIGO Return on Capital Employed July 21st 2025

In the above chart we have measured InterGlobe Aviation’s prior ROCE against its prior performance, but the future is arguably more important. If you’d like, you can check out the forecasts from the analysts covering InterGlobe Aviation for free.

What Does the ROCE Trend For InterGlobe Aviation Tell Us?

We like the trends that we’re seeing from InterGlobe Aviation. The data shows that returns on capital have increased substantially over the last five years to 13%. The amount of capital employed has increased too, by 218%. This can indicate that there’s plenty of opportunities to invest capital internally and at ever higher rates, a combination that’s common among multi-baggers.

What We Can Learn From InterGlobe Aviation’s ROCE

To sum it up, InterGlobe Aviation has proven it can reinvest in the business and generate higher returns on that capital employed, which is terrific. And a remarkable 518% total return over the last five years tells us that investors are expecting more good things to come in the future. In light of that, we think it’s worth looking further into this stock because if InterGlobe Aviation can keep these trends up, it could have a bright future ahead.

On the other side of ROCE, we have to consider valuation. That’s why we have a FREE intrinsic value estimation for INDIGO on our platform that is definitely worth checking out.

While InterGlobe Aviation may not currently earn the highest returns, we’ve compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here.

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Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.



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