HOUSTON — Avelo Airlines, the low-cost startup airline that serves Northern Colorado Regional Airport, has raised $42 million in Series B funding.
The round was led by an investment fund managed by Morgan Stanley Tactical Value, which invested an additional $30 million over its Series A investment, according to a press release announcing the fundraise. With the new investment, Morgan Stanley Tactical Value became Avelo’s largest shareholder.
Avelo previously raised $125 million in January 2020. The Series B round sold at a “significant premium to the original Series A shares,” the company said.
“The incremental capital we’ve raised is a significant vote of confidence in Avelo’s initial momentum and the enormous opportunity ahead of us,” Avelo founder, chairman and CEO Andrew Levy said in a prepared statement. “This additional capital significantly bolsters our already strong balance sheet and enables the acceleration of Avelo’s growth trajectory in 2022 and beyond.” Avelo began service between Northern Colorado Regional Airport and Burbank, California, in October, 2021. It added service from NoCo Regional to Las Vegas in December.