This article was updated at 5:40 p.m. Wednesday to include information from the city of Salem.
Avelo Airlines will cut flights between Salem and northern California in September due to low demand, just months after launching the third route from the city’s airport.
But the Houston-based budget airline said Wednesday it’s also extending service through Jan. 7 between Salem and two other destinations: Las Vegas and Burbank, where demand has been stronger.
Avelo began commercial air service to Salem last October after a years-long effort from local government and business leaders to return flights to the state capital. The airline launched with twice-weekly flights to Las Vegas and Burbank.
In February, the airline announced plans for flights to and from Sonoma County Airport in Santa Rosa, California, starting in May. The last Salem-Sonoma flight will be Sept. 2, Avelo spokeswoman Madison Jones said.
She declined to give specific numbers for how full planes have been on the Sonoma route or the two Avelo is maintaining. The company said in January that most of its flights on the original two routes have been over 80% full.
Avelo has flown 45,000 passengers in and out of Salem since launching, Jones said.
“We were happy to see the Santa Rosa market grow through the summer and we hope to see it return,” Travel Salem said in a statement sent to Salem Reporter. The tourism organization was one of the major advocates for the return of commercial flights.
City spokesman Trevor Smith said city officials learned of Avelo’s decision Wednesday morning.
“The city is pleased to see the continuing strong demand for the Burbank and Las Vegas routes,” he said in an email.
The city of Salem spent a significant amount of money to return commercial flights to the airport in recent years. Delta flew out of Salem for a year and a half before pulling out in 2008.
Despite a city budget deficit, city councilors last year approved spending $2.4 million on terminal upgrades so the airport could meet federal requirements to screen passengers.
The city also budgeted spending $621,000 from the general fund this year for employees to sustain airport operations. Historically, the airport’s operating costs have been covered by airport revenue from things like hangar rentals, parking fees and landing fees. While city revenue has grown since commercial flights returned, expenses have grown more, according to the city budget.
“As additional flights come to Salem, revenue to support the operations from things like guest parking are needed to sustain the fund,” the city’s budget this year said. Smith said that revenue is expected to increase in coming years, reducing the city’s need to subsidize airport operations.
Avelo to date has received $189,423 from a $1.2 million pot of money available if the airline didn’t meet its minimum revenue guarantees, Smith said.
That money comes from donations from private partners and a federal grant and doesn’t cut into city operating expenses. The Santa Rosa route was not eligible for reimbursement.
Contact reporter Rachel Alexander: [email protected] or 503-575-1241.
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Rachel Alexander is Salem Reporter’s managing editor. She joined Salem Reporter when it was founded in 2018 and covers city news, education, nonprofits and a little bit of everything else. She’s been a journalist in Oregon and Washington for a decade. Outside of work, she’s a skater and board member with Salem’s Cherry City Roller Derby and can often be found with her nose buried in a book.
